The economic and social effects of this pandemic have led to a paradigm shift in our consumption, work and social relationship habits that is still being felt today. The prospects for returning to the normality that existed before the coronavirus hit are hard to predict, at best. In a context of great social and economic instability, every company will need to face the challenge of knowing how to adapt to this new reality.

In the field of capital markets specifically, two factors come together to bring both opportunities and challenges at the same time: significant liquidity and investment capacity among private capital funds combined with unprecedented caution and analysis of the investment risks. Investment projects will be painstakingly examined to reject those that fail to offer the right risk/profit combination. With the continued existence of various investment profiles, the universe of companies to analyze will shrink to only encompass those that have successfully understood the new scenario in which we find ourselves. For these companies, resilience will no longer just represent added value but will actually be an obligation.

How should companies position themselves? Companies will not only have to enhance their image and transparency. They will also need to convince persuasively and convey their value proposition to markets and public opinion. Not only through the compulsory reporting channels required by regulators but also through better access to information for investors based on tools that are increasingly supported by digital solutions. A return to basic messages, the purpose and vision, capable of reflecting the stand-out elements of the company and its expectations for future development can make the going easier when communicating added value propositions.

The Equity Story is one of the fundamental documents for any company and is particularly important for listed companies, especially when it receives unequivocal and proactive commitment from management in terms of compliance, tracking and communication.

The main goal for this document is to impact on the various company stakeholders, especially investors and financial analysts. To do so, it needs to include the past, present and future of the company (forecast guidance), reflecting the company’s investment theory. Besides systematically updating the equity story, it should also be highly accessible. This is the only way to guarantee better knowledge about the company, a proper understanding of it and, therefore, a fair evaluation by the market.

At LLYC, we are experts in positioning companies vis-à-vis their various stakeholders. We have a multi-disciplinary team with experience in finance, business development and reputation management that is highly adept at using the specific tools for conveying company value propositions. Just like all the other tools at our disposal, the equity story forms part of the overall vision for positioning projects.