Equity story

The basis of an equity story should ideally be a separate business plan in which management defines and presents its understandable thoughts on future strategy and business development.

The equity story is a translation and summary of the enterprise strategy shown in the business plan, designed to address investors, customers, business partners, the media and employees. The equity story is drawn up in collaboration with the issuing consultant and syndicate bank on the basis of the business plan and due diligence.

The equity story presents the features or USPs of the enterprise designed to make it as attractive as possible for an investment all told. Later on, a summary of the equity story in a few sentences based on this is the central element in marketing and pricing the shares, and at the same time what analysts and investors remember in their investment decisions. As a marketing instrument, the equity story needs to verifiably present the details and underline the conclusions with facts. The intent is to resolve potential doubts of the addressed investors in advance, to be able to provide counter arguments during discussions.

Content of the equity story

Much like a business plan, the complete version of the equity story contains the following substantial company and market aspects:

  • Market and industry development
  • Company development/past growth
  • Future potential
  • Market position and competitive environment
  • Market entry barriers for competitors
  • Services, products and competitive advantages
  • Industry, cost and technology leaderships
  • Customer structure
  • Patents and licences
  • Profit outlooks
  • Management qualities
  • International connections and integration