It's getting time for corporate CEOs, CFOs, and shareholder relations officers to work up their investor presentations for 2009. I've heard lots of BAD presentations. Let me share with you how the GREAT investor presentations are put together:
The purpose of your presentation is to give potential investors a reason to buy your stock. Stay focused on that through the entire preparation process.
1. Identify your investment thesis. This is a reason for someone to put money into your company. An investment thesis is not a description of your company, nor a mission statement, nor a laundry list of what you do, or even what you’re proud of. It is a reason for an investor to buy your stock. The investment thesis should be identified before a single Power Point slide is created. Example: “We are taking our proven ability to achieve strong profitability into higher growth markets.”
2. Identify 3 to 5
statements that support the investment thesis. Again, do this before creating any Power
Point slides. Do not list all
activities; only include on this list statements that support the investment
thesis. Example: “We have achieved strong profitability
through cross-selling to our existing customers.”
3. Develop slides that provide evidence for the statements. Analysts and portfolio managers are skeptical people. Assertions are not valued, but evidence is. Example: slide showing number of products sold per customer at our company, versus industry average.
4. Identify other material that must be included. This could include location of offices, target markets, financial results not otherwise included. Develop slides, and insert them where appropriate. However, make sure that the overall presentation still emphasizes the investment thesis. Especially at the beginning and the conclusion, the investment thesis must dominate the presentation.
5. Express plans as completed accomplishments, without lying, of course. Example: “We have developed criteria to screen potential acquisitions, so that we can grow by buying under-performing institutions serving growing markets.”
6. Address major
problems in the investment thesis, minor problems in the supporting
statements. Example of investment thesis
for institution with major problem:
“We are a bank with a history of strong earnings growth, which has had
trouble with problem loans in the past year.
We have taken specific steps to improve credit quality, so that we can
return to our historic rates of profitability and growth.”
I am available to help companies develop and explain their corporate strategy.
nice post, it's really helpful for readers.
Posted by: Thesis Writing | February 03, 2009 at 11:48 PM
Interesting Blog. Just to add, I believe that the key topics should be Company introduction, Mission statement, Pain and value proposition, The product/solution/service, The market and competition, Business Model, Case study/Client base, SWAT analysis (optional), Financials and Summary.
You can find additional thoughts on this issue in my web site: www.investmentslides.com. I would be happy to get any feedback thought the site.
Posted by: Hagay Levy | April 17, 2009 at 05:12 AM