Roadshow Presentation
A presentation by a company seeking to raise capital.
What is a roadshow presentation?
A roadshow presentation takes place over a series of in-person meetings held between the management team of a corporation seeking to raise money and the institutional investors considering the investment opportunity.
How does a roadshow work?
After the corporate issuer files a preliminary prospectus, underwriters often arrange one or more meetings between the issuer’s senior management and institutional investors and brokers to discuss the offering. These meetings are called a roadshow.
Benefits of a roadshow
Roadshows are a valuable tool for building the order book and assisting underwriters in appropriately pricing a marketed offering. They allow for the management of the corporation to meet many of their largest potential investors in a short amount of time and give them a compelling presentation on why they should invest.
Guidelines for investment bankers
While investment bankers typically attend roadshows, the issuer’s management team should have primary responsibility for preparing any written roadshow materials for delivering the roadshow presentation and for answering any questions from institutional investors and brokers. It may be prudent to engage assistance from a professional roadshow consultant and legal counsel in preparing roadshow materials.
Equity research analysts cannot participate in a roadshow and are not permitted to assist in the preparation of roadshow presentation materials.
Management presentations
Management roadshow presentations should be consistent in all material respects with the information contained in the preliminary prospectus and other public sources. Any written roadshow materials should be prepared by the issuer’s management and be reviewed by the issuer’s and underwriters’ legal counsel.
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