Making your company tangible with your equity story
Can you briefly and succinctly explain to an interested investor why he should buy your stock at this time? With a convincing equity story, you have the right arguments ready for this question. An equity story makes a significant contribution to winning potential investors for your stock. If you are able to tell a consistent equity story and make your company tangible, opportunity for analysts and investors increase. And you can also make a decisive difference between you and your competitors.
A key component of the equity story is the description of the business model. Every investor should understand exactly what your company produces, develops and sells on the market.
The equity story should also illustrate potential business growth and the prospect of rising market shares. In addition, factors influencing current business are important for an investor’s purchase decision. A successful equity story should therefore take into account important information on industry and peer group as well as industry-specific indicators such as commodity and energy prices, exchange rates and key rates. Are there dependencies on customers or suppliers, for example? How much depends on the oil price? Or are there political restrictions that could slow down growth? A successful equity story always adapts to changing circumstances.
Communicating key figures in your equity story
If you want to be convincing with your equity story, you must always consider the investment calculus of your investors. For many investors, the truth lies in the numbers. Therefore, these key figures are part of every well-structured equity story that is relevant to the understanding of one’s own business. These usually include sales, operating profit, margins, growth rates and outlook on future business.
Focus on outstanding management services in your equity story
The equity story is rounded off with a clear presentation of management. This is where the current management is just right for the company. This must be borne out by expressive examples of recent corporate history. Examples include outstanding management performance or a successful track record.