Beyond Compliance, Communications Prep For Emerging Growth Companies

This article was originally published on Forbes.com on September 13, 2023

RACHEL KULE, PURSUIT PR

Forbes Councils Member

Forbes Communications Council

As U.S. markets show signs of a strong finish to 2023, companies eyeing a public listing are going to need to stand out from the increasingly crowded pack. For executives, that means doubling down on their corporate and brand equity. Effectively communicating a robust environmental, social and governance (ESG) program, as well as staking out ground on corporate reputation and culture, will go a long way to attracting that vaunted capital.

The upswing in listings is evident with 55 companies achieving a successful raise so far this year versus 71 U.S. IPOs for all of last year. And they’ve raised nearly $10 billion already, 25% more than 2022’s total of $7.7 billion.

While there are still significant economic uncertainties, including when the Fed will stop raising rates to tamper inflation, companies seeking a public listing will need to have more than their numbers in line and compliance boxes checked.

As billionaire investor Mark Mobius recently said during an interview at the Greenwich Economic Forum in Hong Kong, ESG and “C”—corporate culture—feature prominently in his evaluation of a company’s prospects. It’s not just about return on equity, future projections and competitive outlook anymore. And standard metrics like backward-looking price-to-equity ratios are completely out of his picture.

So how does a company communicate these metrics that often defy simple numeric calculations? Establishing and maintaining a solid corporate reputation remains first and foremost the key differentiator.

Corporate reputation is how the public—and increasingly investors, business partners and their own employees—perceive the company. Stakeholders want to know more than just what a company stands for in terms of its mission, vision, and values, but how it relates to creating a positive work environment and improving the world we live in. Their interests include the overall brand, products, and services, as well as how corporate activities impact the environment and work conditions.

A strong C-suite communications strategy not only articulates these points, developing goodwill in the process, but also generates positive brand awareness and industry relevance. The “chief reputation officers” of the Company (the C-suite) have a major role in establishing and maintaining this reputation.

Internal and external surveys are a common way of assessing reputation. Increasingly, however, taking the pulse of public opinion through advanced open-source analytics provides a richer and wider view of what is being said, by whom and how much it matters. Rather than taking a snapshot in time, ongoing monitoring can expose sudden changes in sentiment, especially as a public listing nears.

On the ESG side, policy statements are no longer enough to establish a firm’s integrity in markets and stakeholders. Specific actions that highlight how a firm deals with the worsening climate crisis, improves peoples’ lives, betters society in meaningful ways, creates a more inclusive work environment and highlights how they govern corporate affairs all need to be clearly expressed.

Addressing how a firm’s programs avoid greenwashing of environmental efforts, for example, is a good way to establish credibility. Active outreach on social and workplace issues, with concrete examples of how the firm overcame challenges and succeeded in meeting its goals, will be instrumental in building trust and confidence.

Communicating succinctly, in the right venues, at the right time, provide the best chance for building engagement as a funding event approaches. This can include the quality of newsletters, increasing earned and owned media presence, and expanding executive thought leadership programs to increase visibility and establish industry eminence.

While compliance remains the foundation for any capital raise, brand and corporate equity is the structure built on top of these core financial and business processes. In an interconnected world where information travels instantly, that equity is more valuable than ever.

EGCs (emerging growth companies) with reputations of consistently stellar culture and bulletproof street credibility are best positioned. Those that focus on these core issues now will stand out against their peers in the race to grow market share and new customers.

How Communications Can Raise Eminence And Earn Capital - Forbes.com

This article was originally published on Forbes.com on February 22, 2023

Rachel Kule, Pursuit PR

Forbes Councils Member

Forbes Communications Council

A company preparing to raise capital needs to be very clear on who they are, what they stand for and how they are going to achieve their corporate mission. In a recent Forbes Expert Panel, I advised that it is essential for C-suite leaders to dig deep and understand not only what attracts investors but how the company will be evaluated against its broader goals. “Ultimately,” I wrote, “being clear on these aspects will enable the company to communicate its relevance and value.”

This applies to venture capital (VC)- and private equity (PE)-backed companies considering a public offering via an initial public offering (IPO), special purpose acquisition company (SPAC), or merger and acquisition (M&A) transaction. The exit is an important milestone—and it is also just the beginning. Once public, the company needs to sustain both communication and performance.

With markets as uncertain as they are, proactive communication must be a constant. The need to earn and sustain relevance becomes even more important. It is easy to communicate during the best of times, but it is critical during challenging times, as I’ve written about before.

Use the key elements of a strategic communications plan for capital markets.

Companies need to be able to articulate their marketplace position from a total stakeholder perspective. This starts with a strategic communications plan based on answering six main questions.

Who are you as a company?

Investor audiences expect a clear and succinct summary of the firm. Experience and knowledge of the business have to be honed into a description that is accurate and meaningful, beyond the details of what the company does or the products and services it offers.

What are your values as leaders?

Corporate executives have extensive professional experience and unique knowledge, but credentials don’t always differentiate a company from its peers.

Executive eminence has the potential to transform a company’s reputation. For example, thought leadership programs can result in new business leads, accessibility of new investor capital, positive client feedback, increased new hire interest and employee retention, and more opportunities for strategic partnerships.

Investors are also interested in the long-term viability of a business. The sustainability of the business is reinforced by the leadership’s ability to communicate operational excellence and strong corporate governance.

What does the company do?

A strategic communications lens is essential to developing an overarching company story. It requires a deep understanding of the nuances of the business, as well as connecting to the bigger picture of stakeholder perceptions and needs. As the company matures, the C-suite, department leaders and staff all need to be able to articulate exactly what the organization does as a whole, in addition to its other services.

What do you stand for?

Corporate mission must go well beyond just a website statement. To be most effective, it needs to live and breathe throughout all corporate communications. It needs to reflect the leadership’s core values, to become an authentic part of the guiding principles that advance the corporate vision. Otherwise, it will lack substance or appear unattainable. Investors expect a transparent mission—and strategic corporate communication creates such clarity.

What is the company’s vision?

A steady vision remains essential. One that is actionable, realistic and backed by solid traction generates confidence in the company’s overall viability. Vision alone cannot carry the company forward. However, it plays a strong role in articulating the connection between the business of today and future prospects.

Why does your business matter to the market now?

When it comes to going public, relevance has a strong bearing on private and public investor perception. Be clear on the demonstrable impact you are having on the market and why it matters now. Consider:

• Alignment of company performance with its purpose.

• Business model strength—including both revenue and profitability, or the ability to demonstrate a path to profit.

• Communicating company value—both perceived and real value for key stakeholders.

Corporate positioning necessitates a total stakeholder approach.

A strategic communications plan, with corporate positioning at its core, takes time to unpack, develop and elevate. The answers to the questions evolve along with the company and need to be revisited often. The most effective plans often also incorporate an ongoing executive thought leadership program that helps promote the firm’s latest insights and achievements.

A comprehensive assessment also needs to transcend internal perceptions. Investor, employee and partner expectations matter. For example, Stripe recently communicated their IPO intentions to employees along with a timeline for a decision and alternatives for cashing out. By employing a total stakeholder approach, the most relevant information can be shared based on understanding internal and external beliefs and interests.

Maintaining a strategic communications plan is a constant throughout a company’s growth journey—whether private or public, it requires fresh eyes, genuine scrutiny and refinement. It must be ongoing and not limited to key milestones and inflection points. The time to start is now.