CFO Consulting tailored for your growing organisation
Investor relations
At The FD Consultant, we help manage investor relations and offer investor communications services.
What does ‘investor relations’ mean?
Investor relations (IR) plays a key role in how a company manages communication between its leaders and investors. IR ensures that investors receive accurate information about the company's situation. This helps investors make informed decisions about whether to invest in the company.
Investor confidence
Investors want transparency, clear and accurate performance measurement, and confidence that the management team has the right information to make the correct strategic decisions.
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Reassurance should also be conveyed regarding the controls and oversight of key financial and business processes.
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A Finance Director (or Chief Financial Officer) is essential to ensuring the investor relationship is well managed. A part-time or fractional FD (or CFO) is a cost-effective way to enhance investor communications, freeing up the management team to focus on business growth and expansion.
How can The FD Consultant help with investor relations?
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We help by producing investor and board information, for example, quarterly or monthly reports with financials, dashboards, and commentary. Reports for investors must be timely, accurate, and relevant.
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One of our FD consultants will help to strengthen business controls and internal processes to mitigate risk, inefficiencies, and data inaccuracy. This often includes oversight of the finance team and its procedures.
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We attend board meetings and support business management in communicating effectively with investors.
Reports, business controls, and an appearance from a financial team give investors comfort and confidence that the business is being run effectively.
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We can add a crucial extra layer of credibility to your leadership team.
Pre and post investment
A fractional CFO can conduct due diligence on a business either before or after an acquisition.
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Due diligence involves assessing an organisation's strengths and weaknesses by verifying financial data, evaluating internal processes, and collaborating with management to develop a credible business plan and forecast.
A thorough evaluation provides valuable insights that benefit both the business and its investors.
Investor relationships matter
Trust and confidence
Investors need to believe in the leadership team. Trust is built over time, through consistent communication, honesty, and delivering on promises.
Long-term perspective
Many investments are multi-year commitments. Strong relationships make it easier to navigate challenges, renegotiate terms if needed, and work together towards shared goals.
Beyond the capital
The right investor brings more than money. They bring networks, expertise, and credibility. A good relationship ensures these added benefits are unlocked.
Practical ways to build investor relationships
Start the relationship early
Don’t wait until you need funding to approach investors; begin informal conversations well in advance to get on their radar.
Communicate clearly
Be open about your vision, your numbers, and the challenges you're facing. Investors really appreciate honesty over trying to present a flawless image.
Deliver consistently
Even the most minor victories, when achieved consistently, demonstrate that you can get things done. It's incredible how much confidence can grow from reliability.
Engage personally
It's important to really connect with what drives each investor. Some are all about growth and making their money work harder, while others may prioritise social impact or investment security. By understanding these motivations, you can personalise your approach and create a more meaningful conversation.
Maintain the relationship
Even after securing funding, the job isn’t finished. It’s crucial to keep investors in the loop with regular updates and honest reporting. Involving them in the journey not only keeps them engaged but also fosters their support and trust as you move forward together.
FAQs on investor relations
1. What is investor relations?
Investor relations (IR) is how a company communicates with its investors, shareholders, and potential supporters. It involves sharing clear and accurate financial and strategic information. This helps build trust and confidence, allowing investors to understand how the company is doing, its goals, and its long-term value.
2. Why is investor relations important?
Good investor relations attract and keep investors by informing and engaging them. It tells your company’s story clearly and credibly, not just through financial reports, but also through regular updates, meetings with investors, and clear messaging. Strong investor relations can make fundraising easier, boost your market reputation, and help with internal decision-making.
3. What does an investor relations team do?
An investor relations (IR) team or consultant manages communication with investors. They create updates for investors, annual reports, and shareholder presentations. They answer investor questions and work closely with the finance and leadership teams. They also ensure that all public information complies with regulations issued by authorities such as the FCA and the London Stock Exchange in the UK.
4. How can small or growing businesses benefit from investor relations?
Even if your company isn’t listed on a stock exchange, investor relations are still important. For startups or growing businesses, good investor relations help maintain clear communication with early investors, crowdfunding supporters, or venture capital partners. This builds trust, encourages ongoing support, and prepares for future funding rounds.
5. What should be included in an investor relations strategy?
A good investor relations (IR) strategy includes regular financial reports, precise performance metrics, updates on company growth and risks, and open communication with investors. It should align with your brand values and vision while following legal and compliance standards. The goal is to communicate your business’s direction and value clearly.
