Crisis Communications
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Blog Post on Potential M & A Deal
Here is a way a mega-cap company addressed concerns it was hearing about a potential M & A transaction. The goal was simply to give the Street comfort it was following its standard process for deals.
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Public Statement on Security Breach – Example
Here is a nice example that is neither common or rare – security breach. We always applaud when a company hits things head on.
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Example of Press Release – Passing of Board Chair
Here is a nice example of a press release about the (unexpected) passing of the Board Chair. Bummer news to communicate, but a nice way to do it.
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Private Companies Can Provide Stellar Crisis Communications
Public companies can sometimes take some ideas from Private companies. Here is such an example of a great private company who has been providing regular updates to interested parties since late March 2020.
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Business Update due to Coronavirus COVID-19
This was a nice way to provide a clear business update in the midst of the Coronavirus.
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Press Release – Accelerate Earnings Release Timing
Periodically we see companies delay their earnings release. But here is an example of a company that accelerated its earnings release to expedite getting in front of its investors. This is a fantastic way to score points with the Street.
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Letter from President to Customers
Here is a nice communication from the President of Southwest Airlines to address certain of its aircraft.
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Response to Media Reports
Here is a company’s response to a media report that attacked a core product.
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Response to a Lawsuit – Press Release
There are 2 press releases here for your review. 1) the response from the company to a class action lawsuit press release; and 2) the initial press release from the law firm.
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Public Statement from CEO
From time to time, it may be appropriate for you to release a public prepared statement from your CEO about a specific event. Here is an example.
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Public Statement on Analyst Research Note – Example
Although rare, sometimes it is appropriate to issue a public statement on a material error disclosed in a sell-side research report. Here is one example of how to do this.
General
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Press Release – Company Names New Head of IR
We are big fans of press releases for Heads of IR. It provides prominence to the role and visibility. A great way to build credibility in the role.
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NASDAQ Insight on Transition Back to In-Person
Here is a nice document on transitioning back to in-person. The pendulum will swing back to a good mix of in-person (which is very effective) and virtual (which is very efficient).
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Press Release Ex – Appointment of IR Manager / Firm
Here is a good press release to announce the hiring of an IR manager, who is from an IR firm. In addition, how equity is part of the compensation. A nice way to show alignment of duties to shareholders.
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E-Blasts – Be Careful with Layout and Wording
Fresh sets of eyes are very valuable. Here is an e-blast which seems harmless. But, having what appears to be “SELL” in your subject header for each blast can work against you. Or, at least not for you. See the document herein for an example.
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Response to Activist Letter
Here is a response to an activist letter.
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Company Response to 13D Filing – Press Release
Although atypical, here is a formal company response to a 13D filing by an investor.
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Termination of Merger Agreement – Press Release
Here is a nice example of a press release that discloses the termination of a merger agreement.
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Quarterly Shareholder Letter – Example
Here is a nice quarterly shareholder letter which gives a synopsis of key highlights and information. We like this.
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IR E-Newsletter Example
Here is a great example of an IR E-Newsletter. It provides a quarterly outreach to your investor and analyst base. Not too detailed, but just enough to make it informative.
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Financial Media for Executives
Here are some tips and thoughts regarding financial media opportunity for executives. This includes our ranking of the best financial media options.
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Investor Kit Cover Letter – Example
One of the least used marketing tools is to include a nice cover letter when sending out requested materials. Here is an example. Feel free to use this as a starting point, then custom it to make it scream your brand.
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Comment on Market Speculation – Press Release
Here is an example of a short and sweet press release you can issue if you have a material movement in your stock price or significant volume.
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Communicating Transition from Paper to Electronic Only
Although it is rare, it is growing. That is, communicating to investors and analysts that SEC filings are only available electronically. Paper copies are not provided. Here are a few examples of communications you can reply with if requested to send paper copies.
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Ongoing Accounting Review of Revenue Recognition – Ex
It is always best to hit things head on. Here is an example of a press release where the company provides a reminder/update on an ongoing review of its revenue recognition and has delayed its SEC filings.
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Student Inquiries
We are big fans of interacting with students and helping them with their projects. Often times, they have fresher thinking than even some seasoned investors. They are not as jaded or set in their ways. We recommended you have a way to connect with this group.
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Thank You to Customers – Example
Sometimes the smallest gesture gets the biggest notice. Here is an example of a simple email sent to customers saying “Thank You”. It is amazing how something to simple can resonate so strongly. Sadly, saying “Thanks” in the business world is not nearly as often as it should be.
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Company Statement
From time to time, your company may look to release a statement to help bring clarity on a specific subject related to your company. Although it is generally reserved for larger companies, any company may use this tool as a communication resource.
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Press Release Tips
Here are some key tips when considering your press release for company news. It includes thoughts on what to do when you have 2 events in close proximity.
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Communication to Customers – Example
Sometimes a simple marketing message to your customers can speak volumes about your company culture. Take a look at this example. It may not be a public company, but you can feel the culture of the company.
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Change in IR Leadership
Here is a nice press release for a change in IR leadership. It provides good background on the new leader, plus a reference to a smooth transition from the former leader.
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Social Media Overview and Tips
Social Media is incredibly popular, but is still not overly used for IR purposes. However, it will continue to grow and here are some considerations and tips as you incorporate social media into your IR messaging.
To Buy-Side
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Thank You – Conference or NDR
Here is an example of a thank you letter you can send after meeting with an investor at a Conference, NDR, or other event. It is simple and easy and is a great way to keep your stock top of mind with an investor. It will exceed their expectations.
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Quarterly Investor Newsletter – Example
This is an easy way to communicate in mass to your investor base. Stay short and sweet and provide key information and highlights. Remember, the audience will only spend a few minutes on something like this.
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Nice Reminder – Transcript is Available (if you missed it) – Email
This was a nice email to receive as a head’s up in case the earnings call was missed. A great value-add by the IR Dept. which takes virtually no time.
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Investor Newsletter
Regular contact with your investor base is critical to building great relations. You may think something is immaterial, but it may be important to someone else. Here is an example of a formal investor newsletter which can be issued whenever you want to give a head’s up on something.
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Example – Transition to Electronic from Paper Communication
Companies continue to transition to electronic and internet access of their proxy materials. Here is an example correspondence to shareholders discussing this transition and explaining how individuals can opt-out of paper materials. This was sent directly to shareholders.
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10-K Highlights Communication to Buy-Side
Imagine you are on the buy-side and you have 18 companies in your portfolio. To review 18 annual reports would be incredibly time consuming. You can score huge points with a nice email summary of highlights (i.e. new items, items taken out, subsequent events, etc.). Here is an example.
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Example Info Request for Feedback from the Buy-Side
The buy-side always has an opinion and loves to give you ideas and thoughts. The best IR teams use this to their advantage. At times, it is important to solicit feedback from the buy-side as you are making decisions on your IR approach. Here is an example email you can send to garner that feedback.
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Example Holiday Greeting to Buy-Side
The Holidays are a great reason to connect with your top investors. Here is an example of a quick email you can send as a warm greeting and a nice way to end the calendar year.
To Employees
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Open Letter to Employees Example
Periodically, there may be news that your Chairperson or CEO will want to address directly to the Company’s employees. Here is an example open letter to the employees which was placed on the home page of its IR Website.
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Tips on Communicating to Employees
It is just as important to provide timely and transparent communications to your employees as you do the Buy-Side or Sell-Side. Here are some tips on messaging internally to your employees.
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Example – Internal Quarterly IR Newsflash
Regular communications to your company’s employee base is crucial to good IR. They look at the stock price more often than you think. Plus, they do not distinguish between company performance and stock performance. You can be a very helpful voice of reason that helps all levels to understand the “Word on the Street”. Here is an example you can use.
To Sell-Side
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10-K Highlights Communication
Imagine you are a sell-sider and you have 18 companies in your coverage universe. To review 18 annual reports would be incredibly time consuming. You can score huge points with a nice email summary of highlights (i.e. new items, items taken out, subsequent events, etc.). Here is an example.
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Example Info Request for Feedback of Sell-Side
The sell-side, like the buy-side, always has an opinion and loves to give you ideas and thoughts. The best IR teams use this to their advantage. At times, it is important to solicit feedback from the sell-side as you are making decisions on your IR approach. Here is an example email you can send to garner that feedback.
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Example Holiday Greeting to Sell-Side
The Holidays are a great reason to connect with your top investors. Here is an example of a quick email you can send as a warm greeting and a nice way to end the calendar year.