Partnering With An Orphaned Contract Manufacturer to Obtain Listing

Challenge

A small contract manufacturer executed a disciplined turnaround and began to show consistent revenue growth as well as industry leading margins. The Company was trading at a modest valuation but in the wake of several difficult years, it had virtually no investor following beyond its legacy shareholder base. With its transition to profitability, the Company sought to professionalize its investor relations strategy and also obtain an exchange listing.

Solution

IMS worked with the Company’s management on a series of initiatives to improve the profile of the company and raise investor awareness. Among the steps taken:

  • Overhauled the Company’s messaging to highlight the repositioned business.
  • Facilitated investor introductions through road shows and conference calls to introduce and in some cases re-familiarize Wall Street with the Company’s management team and turnaround.
  • Attracted various third party endorsements, including feature articles and ongoing coverage in financial industry newsletters.
  • Strategized and spearheaded listing process.
  • Secured Company’s first analyst coverage (without banking deal).

Result

The Company’s turnaround success and growth strategy were effectively conveyed to the investment community, laying the foundation for the Company’s listing on the NYSE AMEX. The company has continued to grow and build its shareholder base.

 

Full Service Outsourced Investor Relations Solution for International Public Company

Challenge

An overseas manufacturing company listed in the U.S. did not have any U.S.-based management presence. The company needed to outsource its entire financial communications program and provide a credible point of contact for investors.

Solution

IMS develops and facilitates the Company’s investor relations activities including:

  • Serving as the primary point of contact for all holders, which has included attracting top name institutions (with an average holding period of more than three years) and assisting the Company in obtaining coverage by two analysts.
  • Ensuring the Company adheres to IR “best practices” such as timely reporting, annual meeting requirements, press releases and accessibility of information.
  • Facilitating all SEC filings.
  • Coordination of all collateral material including investor presentations, fact sheets and all items related to annual meeting.

Result

Company has grown in its recognition among U.S. investors and is able to provide an efficient and knowledgeable U.S.-based resource for questions and information requests.

 

Minimizing Cost of Capital

Challenge

A telecom client with a $40 million market cap was assembling financing for the purchase of a broadband company that would significantly increase the scope of its business by tripling revenues and substantially expanding EBITDA. Management needed to secure favorable equity alongside debt in order to finance the acquisition.

Solution

  • IMS had been working with the client to broaden their investor audience and to credibly communicate their progress to Wall Street.
  • In reviewing the client’s options, IMS identified potential interest from two investors the client had previously met during its ongoing investor relations outreach activity. After subsequent meetings, these funds invested $15 million above the market.

Result

Client secured the necessary capital with recognized long term investors at favorable terms. The acquisition has proven to be a cornerstone of their successful shift to a higher margin business model. Through IMS introductions, 4 of the 5 top institutional holders have been added.