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Story...More Important Than Ever

Posted by Lynn Casey on November 12, 2009 at November 12, 2009 5:05 PM

I'm sharing the next few days with 250+ of the most successful emerging-growth CEOs in the U.S. They're competing for Ernst & Young's Entrepreneur of the Year award, of which Padilla is a sponsor, and listening to the likes of Howard Schultz of Starbucks, the head of newly public Rosetta Stone, and a who's who of investment bankers and VCs about what's in store on the growth curve. Their energy and optimism is impressive, especially in light of the economy. So maybe I shouldn't have been surprised to see the two sessions dealing with initial public offerings so well-attended. I was there because investor relations has been a core competency of our firm since we opened our doors more than 40 years ago. Partnering with investment bankers and attorneys to take a handful of companies public was business that we could count on year over year, most notably in the go-go '90s.

Not so today. Money is tight, investors are conservative. We celebrate every new IPO client that we're fortunate to support - not only because we get to flex our expertise muscles, but because we know they'll be economic growth engines for the future. If you can believe some of the best brains in the business that were on stage today, the money is coming back, although it's still very cautious capital. How to get a piece of the smaller public-offering pie? Act like a public company in every way at least two years prior to your target date. Choose your advisors wisely; not by their brand name or how many people they send to a meeting, but whether your gut tells you they'll support you throughout the deal and after it's done. And, whatever else you do, perfect your story. Nearly every panelist emphasized the need to make your company's story simple - really simple - to understand. Concise. Compelling. Crystal clear. And - as any good IR counselor will tell you - for heaven's sakes don't bury the lead! (I will, with a certain amount of bias, submit that this last piece of advice is critical no matter how your company is funding its growth. Even more important if you're turning your employees into brand evangelists or selling products and services in crowded markets.)

Gotta go. Magic Johnson's up next. "Not only is he big," says our emcee, "he THINKS big..."

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