Leveraging Investor Feedback to Better Articulate Corporate Strategy

Client faced undervaluation and limited institutional investor engagement despite exceptional performance

A vertically-integrated North American leader in consumer durables had relatively little experience engaging with the investment community outside of a small number of sell-side conferences. The company had delivered exceptional performance over 15+ years as a public company. Despite being the primary consolidator in its industry, its shares remained undervalued compared to its peer group. Additionally, while the company’s management team was best-in-class operationally, it had relatively little experience engaging with institutional investors. Rose & Company was engaged to both increase awareness of the company among institutional investors and to help it with normal course financial communications.

As we arranged meetings and collected extensive feedback from prospective shareholders, a prominent messaging gap emerged centered around the company’s capital allocation strategy. Despite returning significant value to shareholders via dividends and strong share price performance, investors were grappling with a lack of clarity in terms of capital allocation following record profits. In its presentation materials, the company's excellent track record and intense focus on operational details and historical market trends were commendable, yet they lacked the forward-looking perspective investors were seeking.

Not clearly articulating business strategy and capital allocation plans can significantly impact investor confidence, and research shows investors often feel companies perform poorly in this area. Investors are looking for a narrative that connects financial performance with strategic decisions, showing how capital allocation supports overall business goals and competitive advantage.

Closing a prominent messaging gap and increasing investor awareness

The integrated nature of our services creates a feedback loop, giving us the ability to translate investor sentiment into actionable insights. Rose & Co. collaborated closely with the client to develop a clear and concise strategic narrative that would resonate with a broad audience, ensuring that generalist investors could quickly comprehend the investment proposition. The existing materials were overhauled to be more concise, with a focus on key performance figures, strategic guideposts, and forward-looking elements. In particular, the company’s strong M&A capability and framework was better articulated, with case studies serving as proof points.

Additionally, the company’s investor presentation was restructured and redesigned by our senior in-house design team to ensure visual elements effectively supported the narrative. Scripts and other earnings materials were refined to align with amore robust investment narrative.

Enhancing investor perception, improving understanding of business model and increasing investor confidence

The revamped branding and presentation style contributed to an enhanced perception of the company. The materials were not only informative but also visually engaging, leaving a lasting impression on investors. Feedback from investors and stakeholders indicated a notable improvement in understanding the company's business model, revenue streams, and strategic outlook. The materials were recognized for their clarity and ability to communicate complex information in a straightforward manner.

The market responded positively, reflecting increased confidence and understanding among investors regarding the company's strategic direction. Post-meeting investor feedback subsequent to the release of the new presentation showed an increased appreciation for the company’s overall strategy.