Promoting Your New Public Company
This is a great time for the Buyer to start getting the word out to the investing public about their company. The best way to do this is to hire an investor relations (“IR”) or public relations (“PR”) professional. Personally, I prefer the PR route versus the IR.
Investor Relations Firms
There are number of great IR firms that have the ability to get your story in front of stockbrokers, institutional and money managers along with sophisticated investors. The good ones are cautious about which companies they take on as clients. They also work for a monthly cash fee plus some restricted stock. A good IR firm can bring attention to your company and increase your shareholder base. Providing you are doing your job to increase shareholder value, this will create a “win win” situation for both you and the IR firm. The last thing an IR firm wants to do is burn their investors by having them invest in a bad deal.
But proceed with caution! Many stock promoters are disguised as investor relations companies. If you are short on cash it is better to wait it out than give a huge chunk of your stock to a stock promoter. The wrong IR firm will take that huge chunk of stock and proceed to promote your stock through bogus email blasts promising future performance. They do this to inflate your stock price temporarily so they (the IR firm) can dump their stock on unsuspecting investors. After they are long gone you will most likely get a call from an SEC investigator. If that happens there is a strong possibility that IR “stock promotion” will result in your company’s stock being delisted from trading.
Public Relations Firms
You have to understand that PR firms are for companies with a long term view. The PR firm will have articles placed in newspapers, magazines and media that will bring attention to your company and hopefully inspire enough interest in investors to get them to buy your stock. If you have a compelling story many times you will have your articles released as a feature story. And if you have a new product that you are introducing or selling you can receive millions of dollars of free advertising through proper media placement.
There are a host of ways to legitimately disseminate company information to investors. For more information please contact me at either 858-729-0075 or Ralph@ventanacapitalpartners.com.
Did you like this article?
's
