Prepare Your Communications for an Equity Event

By Jeannette Bitz

2012 is here and as we enter into the new year, experts from seemingly every sector are looking into their crystal balls and revealing their “predictions” for the upcoming year.

For those compiling their “top 10 IPO lists,” there are the clear standouts - Facebook and Yelp - but also quite a bit of uncertainty amidst fluctuating market conditions.  However, there is a sense of optimism among analysts and many believe that we will see an increase in the number of IPOs and acquisitions throughout 2012. In fact if 2012 is anything like 2011, organizations may elect to get acquired versus going through the IPO process. Dow Jones VentureSource this month released its analysis of the number of venture capital-backed companies that exited in 2011. According to the report, the number of exits by acquisitions far exceeded the number of exits by IPO by the largest amount since 1992, when Dow Jones VentureSource first began to produce exit data.

Either exit strategy requires a well-thought out communications plan. For companies that are considering an IPO or preparing to be acquired, it is important to emphasize the importance of maintaining visibility throughout the process - from the months leading up to the filing or acquisition, throughout the quiet period in the case of an IPO, and after the transaction or event has occurred. Most organizations have never undertaken this type of effort and may not realize the pivotal role that a PR agency can and should play in guiding them through the process.

One of the most important pieces of advice we offer our clients is to make sure the communications efforts continue to move forward. Even during a quiet period, companies must avoid placing their marketing and PR programs on auto-pilot, or even worse, shutting them down altogether. Although there will always be cautious lawyers on hand to pull back the reins, the reality is that a company can continue with most of its planned PR activities, such as issuing press releases or launching products, as long as it had already been engaging in these activities in the past.

Once you start thinking about an IPO or other equity event is the time to make sure your PR and marketing efforts are in high-gear and focused on building your profile with prospects, customers, investors, and the media, to establish a business-as-usual level of outbound communications.
Here are five general guidelines that companies can leverage to continue to build momentum while preparing for an equity event:

1. Stay the course. Continue planned communications strategy, product launches, press releases, and editorial opportunities.
2. Simplify your story. Re-tool your messaging to make it easy for investors or prospective buyers to comprehend and relate to.
3. Analyze your PR strategy. Focus on the activities that will get you noticed, such as thought leadership pieces and placement in trend stories.
4. Refresh your marketing materials and other assets, such as sales collateral, corporate identity, website, newsletters, and direct marketing campaigns.
5. Develop and expand social media strategy. Implement or expand social media strategy, creating an integrated marketing matrix that ties in key initiatives with social media campaigns.

It is important to know that your company will emerge from the IPO or acquisition as a substantially more significant company - from both a size and revenue perspective - with a greater burden of accountability. By putting a communications framework in place, your PR agency partner can help your organization extend the goodwill earned during the IPO or acquisition far into the future.