LS Global Advisors provides high-level investor targeting services. We are experienced in identifying the most appropriate institutions for our clients to focus their IR efforts on. Our multi-pronged targeting process employs real-time shareholder intelligence, publicly-available peer ownership data, and proprietary investor databases, combined with our extensive experience and relationships with the buy-side community. Here’s how the process works:
First, we use a quantitative approach to screen both our own proprietary databases and publicly-available information on a variety of criteria – for example, revenues, capitalization, growth projections, profitability, P/E and other ratios, industry preferences, country or region, social investment criteria and corporate governance issues — to identify institutions that would be interested in the particular client company.
Then, a qualitative process is applied to the screening results using our many decades of experience with institutional investors, our knowledge of investment trends, and our contacts within the industry, to further refine the search. This qualitative step is essential in locating the most suitable investor candidates, since some firms identified in the screening process may actually not be a good fit. For example, they may not have sufficient buying capacity to receive management’s attention. Clearly, passive
investors, both indexed and quantitative, would also be excluded. Sometimes, too, an institution that passes the screen may have other problems – such as financial, legal or reputational issues – that would make them a poor or undesirable target. From our wealth of experience, we are able to weed these firms out before the process goes any further.
In addition to searching for potential new investors, we may also recommend targeting current shareholders who have underweight positions in the company. Qualified investors identified by our research for potential targeting may also include reputable hedge funds that meet our screening criteria.