IR firms can improve how companies and investors relate to each other. IR often stands for investor relations, usually between company leaders and the larger financial community. IR firms provide an outside third-party opinion that often brings a fresh perspective to an old problem or tired routine. When comparing IR firms, consider intended goals with investors, anticipated price points, and extra services provided by the IR firms that might prove useful down the line. Getting investors involved and excited can improve the overall strength of a company while potentially boosting revenue and public perception.
The Best IR Firms
Selecting the ideal IR firm can feel complicated, but luckily the process can become more streamlined once you know what to look for. When comparing IR firms keep in mind that such companies can also be considered financial PR because they are intended to spread the word about imperative financial information. Research the key benefits that make each IR firm stand out from the rest in combination with its expected price point and communication capabilities. Ideally, weigh how an IR firm splits its focus between public relations and service to understand if it will be the right fit for you.
KSCA was founded in the late 1960s in the United States of America. The company provides services for public relations as well as investor relations. It aims to build credibility with individuals such as shareholders using the IR strategy. The company has a senior investor relations team dedicated to helping companies meet their goals. KCSA has an extensive approach to investor relations that considers IR, social media, and PR (public relations). One goal of this approach is to improve awareness while also driving sales. KSCA combines both financial expertise with modern and traditional communication styles to effectively corner the desired market. To ensure productivity, KSCA begins with an in-depth company analysis to better understand any possible problems or areas that could use improvement. Potential customers are able to learn more about pricing by reaching out using the indicated phone number, email, or contact page provided on the company website.
REQ offers a wide range of services such as online reputation management, branding, analytics, and public relations. The company offers a public relations area of expertise that delves into boosting revenue while speeding up investments. REQ offers strategies created specifically to address the needs of each company. It’s intended to assist with IPOs, help with mergers, and valuations. In general, the emphasis on public relations strives to speed investment, increase revenue, and improve recruiting by positively repositioning a company. Improving investor relations centers around key elements such as brand messaging, content creation, and media relations. Such data is then analyzed and tracked through the lens of features such as ROI tracking. ROI tracking indicates the return on investment. The company tends to charge based on either the project size or established hourly rates. Interested individuals are encouraged to reach out using the form placed on the website.
ICR was founded in 1998 and has since expanded internationally to integrate and examine how various sectors of a company work together to define success. It is considered a company that focuses on strategic communications and advisory. ICR provides services that range from investor relations to public communications and even crisis communications. When focussing on investor communications, ICR delves into factors such as perception analysis, analyst relations, and investment positioning. The company tends to offer both hourly and project-based pricing which is not easily available on the website given that prices are often designed around individual company needs. The firm assists companies within multiple sectors such as financial and cryptocurrency while offering a wide range of services connected to a long-standing company history.
4. Red Fan Communications
Red Fan Communications was founded in 2008 as a woman-owned company. It has since grown over the years and provides services such as investor relations, IPO, funding, and M&A in addition to executive consulting and other important tools for building a strong company. In terms of preparing for an IPO, Red Fan Communications strives to strengthen the brand and messaging of a company to communicate with the public as well as investors. To properly execute such clear communication between a company and its investors, Red Fan Communications delves into an extensive process that includes research, a brand survey, and a workshop designed for the executive team of a company. In terms of pricing, the project sizes can span above $75,000, but interested individuals are encouraged to fill out the form placed on the website to speak with a member of the firm.
Elevate began in 2008 and covers a variety of different needs such as stakeholder engagement, corporate communication, and media relations. The focus on stakeholder engagement takes a broader approach by helping investor relationships while also focusing on people that have a strong interest in the company but do not have a direct financial stake. Interested individuals have the option to reach out to the company using the contact page to learn more about relevant options. Similar to many companies within the industry, Elevate allows people to read case studies that create a better picture of the company’s capabilities. In terms of pricing, it’s possible to obtain hourly options or minimum project rates spanning above $5,000 in general.
Advantages of Working with IR Firms
Working with an IR firm has the ability to provide both direct and indirect advantages for a company. One key benefit that occurs indirectly is that it’s often advantageous to have a skilled second opinion such as an IR firm offer a different perspective. Although likely costly, an IR firm has the ability to be thought of as an investment because of the added value it will likely bring not only to specific projects but also to the company as a whole.
- New Perspective: Hiring and working with a different company might seem difficult at first, but the proper assistance has the ability to slingshot your company onto a winning trajectory. It’s easy to become stuck on a problem or to miss key details when continuously reporting to both investors and stakeholders.
- Communication Expertise: An IR firm understands the importance of clear and engaging communication when speaking with investors and general stakeholders. When it comes to getting your team aligned, clear communication is key.
- Focussed Teamwork: Hiring an IR firm frees your team of tasks. Your company has more time to focus on other areas of interest while a company of trained professionals handles and crafts your approach to investor relations. When properly executed, investors will likely invest additional funds and time into your company.
Drawbacks of Working with IR Firms
Before working with an IR firm, weigh the possible drawbacks against the potential benefits to ensure that such a choice will be right for you. The often rigid structure of an IR firm might not work for all companies. When communicating with an outside company, it’s possible to have a value gap or a mismatched pricing goal. Contemplate multiple firms before selecting the one that could work best for you.
- Potentially Rigid Structure: When working with an external company, the communication and hierarchy for a project will likely become more formalized. Such a strict structure has the ability to ultimately slow down communication between a company and its investors. Avoid this potential ebb in communication by knowing the communication structure between the IR firm and the company.
- Possible Value Gaps: Communicating with an outside company has the potential to create value gaps. The value gaps can occur when company goals are not clearly communicated to or understood by an IR firm. A gap of this sort has the potential to create competing goals and mismatched priorities so be sure to be on the same page with an IR firm from the start.
- Expense: The price of working with an IR firm has the ability to quickly add up. Avoid entering into a working relationship before clearly communicating an expected budget. Speak with an IR firm to understand what services are included with their price point.
What to Look for in IR Firms
When searching for IR firms, examine several factors which can provide indicators of a successful firm. Consider the stability of the company, the strength of the talent within the company, and the average pricing associated with each IR firm. When comparing and contrasting IR firms consider that a fairly priced firm has the potential to pay off by positively improving investor relations and ultimately increasing investments.
When examining IR firms one important factor remains the actual strength of the company. For example, companies that have remained in business for multiple market cycles and several decades likely understand how to adapt and change with the times. Newer and less established companies have the potential to shoot to the top of the pile, but their overall track record might not be as long due to their inherent youth. The age of the company is just one factor that should also be examined in combination with other points such as the financial strength of the company. For example, if a company is losing money then it might be wise to consider using another firm.
Strength of Talent
One area of consideration that has the potential to either make or break an IR firm is the quality of its employees. Individuals working within an IR firm often require a broad range of skills that don’t often naturally work together. For example, a person communicating to investors in a company will need to have excellent people skills while also maintaining a deep knowledge of the financial information and general trajectory of the company. Another added factor is that people within an IR firm should also have a working understanding of operations strategy to have an idea of not just a company’s current situation, but also its likely future. The talent within an IR firm should be comprised of people that can communicate and build professional relationships over time.
Before selecting an IR firm, research the likely pricing that they will charge. The pricing structure varies depending on the length and intensity of the work. While some firms charge by the hour others charge by the project. Consider getting a feel for a firm’s specific pricing structure before agreeing to work together. In general, firms charge by the hour beginning at around $150. The firms that tend to charge by the project start as low as $5,000 per project, but have the potential to quickly increase prices depending on the workload of a specific assignment.
Working With the Right Investor Relations Firm
IR firms can be an important part of company growth because they help information flow between a company and investors. Selecting the ideal IR firm might feel difficult, but it will likely become more streamlined once a company understands its goals and budget.
Frequently Asked Questions
What are IR firms?
Many IR firms are often known as investor relations firms. Individuals that work within investor relations often communicate with investors and provide details about the ongoing situation within the larger market as well as the company that hired them. IR firms aim to create the highest value for a company while highlighting the potential and current situation to both the company and investors. Investor relations typically require a specialized skill set where individuals are effective communicators with a strong understanding of finances. Overall, IR firms keep investors informed about the inner and outer workings of a company so that individuals can make educated choices.
What key information do IR firms share with investors?
The specific information that IR firms share with investors varies by company. However, the firms often disseminate similar information in terms of categories. For example, firms often share with investors information such as potential new merges, financial details, or legal updates. The IR firms intend to create a positive environment that garners excitement for the company while also increasing capital. The goal of sharing information is to keep individuals informed while ideally also garnering enthusiasm and capital for the company. At times, an IR firm will create messages for PR, but it’s often common for companies to spend a fair amount of time focussing on creating informative content for investors.