Preparing for the IPO: Scenario Planning and Explaining Your Resilience – Nasdaq’s Tips for Attracting Investors in Difficult Times


Christopher Anselmo, Director of Nasdaq’s IR Intelligence Team, talks about preparing for the IPO and the need to “lock in” your IR talent early

After the record IPO year of 2021, things have been “significantly” slower so far in 2022 “amid inflationary concerns and a challenging global geopolitical environment,” says Christopher Anselmo, chief executive. from Nasdaq’s IR Intelligence team. Although he notes that there is “no rush to go public” given the amount of capital in the private markets, there remains a “healthy” pipeline of companies ready to list.

What’s also different this year is that Anselmo expects the window for opening and closing trades to be more frequent, making it all the more important for companies looking to get listed. to be well prepared. “Once market conditions improve, uncertainty is cleared from the market and institutional investor sentiment improves, we tend to see more companies come to market,” he says.

Locking in IR talent – ​​and communicating the risks

Part of preparing for listing increasingly involves having an IR person on board before the company goes public, and Anselmo describes IR talent as “in demand and evolving.”

“Due to high demand, it pays to lock in IR talent early to create a consistent messaging and cadence with investors,” he advises, adding that integrating IR also frees up management time as a company prepares for its IPO.

“We still see most IROs come from internal sources due to company and industry familiarity. But there is a growing pool of external candidates who bring unique financial experience from sell-side and buy-side companies, as well as a multitude of other horizons.

“Finding the right person can take time, and this is the main reason why many companies prefer to hire an agency to help them with the process. Both paths can be successful, so companies need to identify the desired outcomes and choose the most suitable one.

When it comes to communicating with investors ahead of the IPO, Anselmo advocates a direct approach, especially given the ongoing challenges in the market.

“Growth rates and margins have been at the center of investor concerns: recession and inflation concerns have dampened investor appeal, so it is important that companies explain their resilience to these concerns macroeconomics,” he said.

“The frequency of outreach issues, as well as the messages. It is important for companies to tell their story to investors to capture their share of assets when investors start to pull money from the margin. In challenging market conditions, we also saw an increased use of scenario planning and communications to provide investors with greater clarity. »

Among the many offerings companies can leverage through Nasdaq’s IR Insight service are benchmarking by industry and market capitalization, CRM software, targeting technology, and a conference calendar – all tools that help deepen your knowledge of your email and help businesses do their messaging works harder.

The right IR Insight

More generally, when it comes to preparing for IPOs, the Nasdaq provides companies with a checklist to help ensure they are ready to go to market when the window of opportunity presents itself.

“One of the most important steps is identifying attorneys and auditors and determining roles and responsibilities for the full list of IPO issues, such as IPO structure, registration statement, the offering and the overview of the corporate governance framework,” says Anselme.

“There are a lot of things that go into an IPO, as our checklist attests, but one of the pitfalls some companies fall into is focusing too much on the IPO and not enough on the IPO. life as a public company. Going public is just the first step in a long and successful life as a public company.

And once listing is complete and life begins as a public company, companies face a host of critically important firsts – from their first earnings call to their first investor roadshow. Companies will also experience significant liquidity or funding events which can also influence the trajectory of the stock.

Nasdaq’s IR Insight and other advisory teams not only work with companies throughout the IPO process, but also remain partners in a company’s life in the public markets, providing a platform Purpose-built IR to streamline workflows, access premium content, engage shareholders, and measure your ROI. , allowing businesses to monitor and benchmark themselves and the in-depth transcripts and analytics a business can leverage.

come out strong

Anselmo’s key message is that when it comes to both pre-IPO readiness and life as a listed company, it’s all about preparing and coming out strong – especially in the challenging environment of ‘today. What is clear is that, however intensive the advertising, it is the beginning a trip that includes everything from roadshows to regulations, from business access to growing your sales-side coverage.

Having the right focus on investor relations is key to success in all areas of a public company’s life, and the data provided by Nasdaq’s IR Insight is the foundation and fuel for an IR program that works. For Your Business.


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