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The development of a company's investor relations capabilities
is fundamentally a build-or-buy decision. Looking at a company from the
perspectives of time, size and life-cycle, it is clear that younger, smaller
companies can benefit from outsourcing investor relations responsibilities
to experienced consultants like CCI. Not only does this create economic
efficiency compared with staffing an internal department, especially when
support, benefits and occupancy costs are considered, but it also gives
our clients access to broad insight and expertise developed for more than
30 years by a team of professionals working across virtually all industries,
investment sectors, and situations. Most small- or mid-cap companies would
find it difficult and costly to replicate this experience and depth internally,
or match the perspective we have on IR trends and best practices.
Even larger, more complex companies can benefit from outside IR counsel,
which brings fresh viewpoints, a wider field of vision, and increased
capabilities to an existing program. An outside point of view may help
identify weaknesses, potential process improvements, and cost savings.
Either way, a disciplined, focused investor relations program pays off
over the long term with greater visibility among investors, increased
access to capital, and enhanced management credibility. The tangible implications
of this include broader institutional ownership, increased analyst coverage,
reduced volatility, and improved trading metrics – in step with
the growth and prosperity of your company.
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