When the Company Story Becomes a Financial One
When a company is up for sale, three key players take center stage: the current investor, the banker and the top executives.
And while the PE firms and the bankers know their roles well, the company leadership team is walking into a setting that’s less familiar to them. As the key spokespeople for the company, they should be the company’s best communicators. And in most settings, they are.
They bring credibility to a big prospect presentation. They add inspiration to an employee all-hands meeting. And they establish buy-in with their current investor and Board on strategies and new opportunities.
But pitching the company as a financial story is something they haven’t done often. And it’s different enough that they lose some confidence and conviction around how to do it well.
Here’s why:
It’s not the way they tell the story. – The storyline is created by the bankers. And it’s much less about solving needs for clients or inspiring a culture behind a vision. It’s focused with a critical eye on the value of the company and the potential that value has to expand in the future. It’s much less about where you’ve been and much more about proving where you could go. It’s a sum of details that have to add up. And it’s a way of positioning the company and assessing it that the founders or current leaders haven’t considered.
It’s heavy on data and details. – Most leaders don’t use slides in a lot of what they do. They’re the inspiring element of the company, so they speak from the heart, they speak from an outline or they speak off the cuff. They do not speak from heavy data slides. So, when the bankers hand over a deck for a management presentation, it’s overwhelming to them. Many leaders say they don’t see “their story” within it.
The story’s there, but it’s a different way of presenting it. It’s full of insights. It’s full of data points. It maximizes landscape with 9 or 10 points on every page. And that’s different than how a business leader has been coached to inspire and engage an audience.
And it’s more of a team effort than they’re accustomed to. – That’s a nuance that matters in communication. Leaders present together, but they stay in their own lanes and talk to their areas of responsibility. They might call it a team presentation, but it’s more five focus areas coming together. In a management presentation, they need to align to the same core messages and the same sound bites. They need to be well-aligned on handling questions so that there is a consistent response and belief across the team.
And it’s the ability to solve those three differences that brought us into the investment coaching space more than a decade ago. The role of the key players remains the same: positioning the company for a successful exit from one investor to another. Our role is an added addition: helping the communicators, as individuals and a team, find their confidence in a tougher setting with a different lens on content.
We do it with a three-step process that focuses on: the talk track, the communicators and the team.
The talk track doesn’t mean the deck or the positioning. That’s the bankers’ role. Our work focuses on helping each leader find their voice in a storyline that is less familiar to them. While the slides are dense to leaders, it’s common place in a sell position. These decks are used to position companies as pre-reads and as documentation to set the story without the leaders. So, the slides won’t change. But we can help leaders consider how their voice comes through and how to work with headlines and foot lines to avoid getting bogged down in the details and losing their train of thought or their audience as a result of it.
The seasoned communicators need some support in thinking through how they want to position themselves along with the story. Most of this work is on personal style and leveraging great communication skills to be clear, concise and compelling. It’s a high-pressure setting. So, each leader wants feedback and a few coaching adjustments to be sure they bring their “A” game to the setting.
And finally, the team. Learning to manage key messages and sound bites in a messaging document is a new skill for most leadership teams. It’s pulling everything into a few big concepts that help them consider how to make points repeatable. And it’s a rehearsal that helps them see the flow of the talk track, their ability to tether back to key points and appear as an aligned team in a high-stake setting.
We’re the added addition that allows the bankers and current investors to stay focused on attracting buyers while we stay focused on helping the leadership team find their voice in presenting a financial storyline. So, whether your role is exiting a company in your portfolio or building the financial storyline to pitch it to other investors, we can ensure that the communicators you’re counting on bring their best to the opportunity.
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