by Stephanie Bickel
Today, leaders are faced with challenges they have never seen before. Conversations with potential investors and analysts require the right balance of expertise, storytelling, and crisis management. As a leader, you need to be well versed on topics such as diversity and inclusion. You also need to be able to connect and engage with audiences in a virtual environment. And, if you want to incorporate the best communication strategies for leaders, you must be able to confidently explain your vision and the business opportunities to investors and analysts. You also must be able to articulate a clear, compelling value proposition to potential acquirers.
To make the greatest impact, use your best leadership communication skills to prepare these 5 stories:
Company history
Company overview
Growth story
Inflection point
Picture of the Future
In each area, write down questions that investors may ask and outline a response. Get to the point that you are just as comfortable with the content for handling impromptu questions as you are delivering your prepared presentation.
Another essential part of communication in management and leadership to investors is showing off your team dynamics. Rehearsal is just as important as preparing the message, if not more. Lean on the expertise of each leader in the room to highlight your depth of experience and expertise. Start with a stumble through once the first draft of slides is ready. Go through the presentation without questions or discussion to feel the full story. Then, run through it and respond to questions. Plan for one more final dress rehearsal with asking as many questions as possible.
After years of working with private equity firms and investment banks, we have compiled our top list of communication strategies for leaders delivering management team presentations. Here are our do’s and don’ts for communication in management and leadership.
Do:
Treat each potential investor or acquirer differently. Expect that the process is different with each of them.
Answer data requests directly. If it is a tricky request, say that you will get back to them with a memo after the presentation. Don't say when.
Smile in your self introductions. So often the management team is unnecessarily stiff in the opening.
Be comfortable with silence.
Clarify questions you do not understand or you don't know why they are asking.
Include silent team members more. CEOs should not hog the microphone. It looks like you don't trust your team.
Don't:
Don't commit to timing on anything in the presentation. You can set yourself up for not meeting a commitment with them, and that could break trust.
Don't mention how many potential buyers are in the process. They will be curious. If it comes up directly, refer them to your advisor or say, "We are not at liberty to share that information".
Don't talk about valuation. You can say, "valuation is not part of this conversation." Leave that discussion to your advisors to handle.
Don't spend a half hour on the history of your business. Spend a half hour on the future!
Your leadership communication skills and strategies will help position your business competitively and highlight long-term business potential. Put the time into making your presentation excellent. Your investors and potential acquirers will see your business as one they don’t want to pass over.
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