How To Promote A New Public Company
Starting a new business is hectic, what with obtaining the funding
, finding the right location, and leaping all the bureaucratic hurdles the various local, state, and federal governments put in your way. When youre finally done with the set-up tasks, you may just want to rest on your laurels and take it easy for a while.
While investor sentiment toward stocks has been negatively influenced by the recent volatility in the financial markets, interest in IPOs has remained steady.
The number of global IPO filings in 2010 is about 120 and indications are that there are many to follow. Of the companies that already have filed, a staggering 65% have come from Asia, with China leading the pack. So the uptick in filings year to date is a global phenomenon, which speaks in part to the resilience of the global economy.
The benefits of going public are fairly universal: greater and more inexpensive access to capital, enhanced opportunities to pursue mergers and acquisitions, increased liquidity for shareholders, a stronger corporate image and another tool to incentivize executives and employees. Here are ways to promote a new public company.
Communication Benefits:
Communication is the affection of every organization. Everything you do in the abode after-effects from communication.
When most people think about communication it is usually speaking that first springs to mind, however, being able to listen well is a large part of effective communication. A major benefit of good communication within the workplace is that it may very likely lead to an improvement in office morale.
Following are a few guidelines to help you become aware of how to take advantage of the benefits and avoid the obstacles.
Learn the 3 Rules:
If an affective media relations program can help you increasing the demand for company stock, then the newly public companies will learn quickly that the rules of the road are very complex, than while operating under the protection of private ownership. Media relation is vital if you know their rules. Come lets see three basic rules.
Rule 1: Audience Changes
When a company lists its share on a public exchange; its key share holder extend far beyond media, customers, market researchers, business partners, and employees to include financial analysts, share holders, share holders interest groups, and government regulators.
Rule 2: Increase of Scrutiny
Public companies often comes under instance scrutiny and attacks in traditional as well as media such as the blogosphere, which can provide forums for watching investors and disgruntled employees. It also has potential to become hostile.
Rule 3: Avoid being too Strict
Quick period / speed rules strive to lower company awareness in the market just as media and public interact may be picking up, also cost of non compliance with quiet periods and numerous other restrictions may be devastating.
New Communications Approach
New public companies can avoid costly missteps by adopting a new communications approach that addresses all stakeholders and encompasses all pertinent communications disciplines.
Communications Teams for Help:
Communications team members need to function as strategic counselors to management teams and ambassadors to broader staff. They need to clearly understand and advocate the subtle differences between media activity that brings benefit and safety versus potentially risky and damaging during a quiet period helping to maintain and build company awareness in the market while simultaneously abiding by new regulations.
Investor relations, corporate affairs, public affairs and crisis management must be equipped to manage and contain media reactions during turbulent times though the rapid dissemination of accurate, comprehensive information. Its much easier for a company to keep its credibility than to rebuild it.
Social Media a New Communication Approach
Social media as a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0 and it allows the creation and exchange of user generated content. Social media is media for social interaction as a super-set beyond social communication. Enabled by ubiquitously accessible and scalable communication techniques, social media has substantially changed the way of organizations, communities, and individuals communication.
Social Media as practiced with tools like Facebook and Twitter creates an entirely new set of uncharted disclosure issues. On one hand, some companies simply restrict using social media for investor communications, despite the widespread popularity and advantages of these media in crisis situations.
On the other hand, companies may opt toward transparency and provide information in direct opposition to fair and equal disclosure requirements.
Employee Education
The employee communications discipline can take the form of a program aimed at educating employees on behavioral changes and expectations within a newly public company. For example, once a company goes public, employees have no right to material information before other shareholders.
Employees are an especially important group. Experience has proven that employees are more motivated when they clearly understand company actions and decisions and have a sense of personal stake in the outcome.
Despite the desire for transparency, an advice to the clients isthat corporate legal and IR teams must get involved in social media to protect the company from violating disclosure requirements. The risks simply dont outweigh the benefits.
by: Augustine.jo
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