Alpha’s client was considering a significant one-time dividend at a time when the stock had been under pressure for several quarters. Further, the stock had significant inside ownership and our senior counselors were concerned that the Street might misconstrue this shareholder friendly action incorrectly.
Alpha IR proceeded to query several of our client’s influential shareholders before the Board of Directors was set for a final vote. We were very careful not to hint that this action was imminent, and thus our team developed a sophisticated set of questions around investors’ expectations for free cash flow. We held seven conversations with key shareholders over a two day span and packaged these conversations, as well as a detailed financial analysis on the historical impact of one-time dividends into a PowerPoint package that was delivered to the board. This work helped the Board determine the scale and scope of the dividend, and also supported a broader communications need around future uses of cash.
About Alpha IR Group:
The Alpha IR Group is a holistic investor relations and transactions/crisis advisory firm that protects, enhances and builds the investment brands of America’s leading companies. We bring significant Wall Street, financial, and large agency experience to our clients, while retaining a small company, holistic approach. With deep sector expertise and senior-driven programs, Alpha IR is the right choice to manage our clients’ reputations, credibility, and ultimately, their valuation. The firm has offices in Chicago, New York, and Boston and represents over $100 billion of equity value trading on today’s public exchanges.