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How Do I Make an IPO Presentation?

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  • Written By: Geri Terzo
  • Edited By: PJP Schroeder
  • Last Modified Date: 01 May 2019
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    Conjecture Corporation
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An initial public offering (IPO) presentation is a tool that issuing companies, investment bankers, and attorneys use to attract investors to a new stock. When it comes time to give an IPO presentation to potential investors, there are some tactics that can make the overview more effective. Touting the merits of the business while also acknowledging the risk profile gives investors a well-rounded impression of the company. Choosing the timing of the IPO presentation based on the financial markets and recent financial condition of the audience can be instrumental in creating demand for a new issue.

An IPO presentation may be given during a road show, when the professionals participating in the new issue travel to different cities to meet potential investors face to face. During this time, the company, bankers, and lawyers can determine what the demand for the new issue is, which helps in the overall pricing and timing of a new issue. In addition to potential investors, financial analysts are likely to attend a road show, which underscores the importance of clearly explaining the business. If an IPO presentation does not go over well, a company may be forced to delay or worse, cancel, a new issue.

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During an IPO presentation, you want to highlight the current focus of the business. If there are cost-cutting measures in place, explain what they are and give reasons on why they will help the company to be more profitable. Stick to themes, and remember that these investors are not as familiar with the business as you are, even if they know the industry. Explain the business model and how revenues are earned and profits are made.

Devote a section to growth plans, explaining whether future growth will be domestic, international, or global. Also, investors might be interested to know if the company follows organic growth, which is internal expansion of a business, or looks to grow via acquisition. Graphics, pictures, and charts are all effective enhancements to use during an IPO presentation. An idea is to show a global map, highlighting the regions in which a company does business or intends to do business in the future. Pictures also help to keep the audience's attention.

This is a good time to explain any new products or spotlight the biggest revenue-producing product at the company. Market competition is usually on the minds of investors and analysts, so reviewing the business's competitive position and market share will address those concerns. If appropriate, discuss any pricing used and potential plans to make changes to a pricing model.

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