The Role of PR in Your Exit Strategy Business Plan

Public relations performs a strong function in laying the groundwork for an exit technique for enterprise by highlighting an organization’s success in {the marketplace}, elevating its management crew and showcasing its IP and knowledge. PR additionally performs a pivotal function in speaking the exit to the market and to workers, whether or not or not it’s for submitting for preliminary public providing (IPO) or a profitable merger & acquisition course of. Let’s look at the ability of a very good PR crew in every of these instances.
How to arrange an exit technique: Start with the top in thoughts
The first step towards getting a very good valuation is to develop and construct a powerful companion ecosystem. This accomplishes quick and long-term objectives that enhance valuation. For the quick time period, a wholesome ecosystem of expertise companions is one of the best ways to develop a channel and go-to-market technique and be in a place to exhibit recurring income to buyers. For the long run, these expertise companions are your greatest targets for acquisition.
Common misconceptions when leveraging PR in exit methods
A PR crew is a vital asset when devising an exit technique marketing strategy, however it’s composed of human beings – not miracle employees. Don’t shoot your self in the foot with unrealistic expectations or omissions. Here are a couple of to be careful for:

Assuming you’ll instantly get press protection – You may hit the protection lottery immediately, however it’s extra possible that your PR crew will slowly rack up media wins over time as they construct relationships and introduce your providing to the market.
Confusing press releases with content material advertising and marketing – Press releases are precious items of content material, however they’ll’t substitute content material advertising and marketing in your general advertising and marketing technique. Content advertising and marketing addresses the ache factors of your prospects at each stage of the customer’s journey and is a vital part of sharing your message.
Not utilizing PR to construct relationships – This is an effective time to do not forget that PR stands for public “relations.” PR groups excel at introducing journalists and analysts to corporations and facilitating long-term relationships. Use their experience in this space to its full benefit.
Not utilizing your PR crew to do social media – Just because the traces between advertising and marketing and PR have blurred considerably, so have these between social media and PR. Your crew is adept at communication throughout many platforms, and it might be a waste to exclude them out of your social media efforts.
Failing to speak clearly and absolutely – Nothing derails an exit technique marketing strategy like poor communication. Make positive you work together usually along with your PR crew, whether or not it’s an company or in-house, discussing all of the components which may have an effect on the communications and messaging technique.

How PR exit methods differ relying on desired end result
When it involves mergers and acquisitions, a key side of your PR crew’s technique will likely be to create a constant stream of press releases, which set up a timeline of your organization’s momentum and achievements. Even in the event that they solely seem in your firm’s web site, press releases will exhibit your accomplishments to potential buying corporations. Acquirers see press releases as a reputable supply of details about an organization.
preliminary public providing (IPO)
A well-executed preliminary public providing (IPO) is usually a demanding course of that requires a major quantity of messaging and coordination. PR performs a vital function in constructing the excitement that’s vital for IPO success. If that is your objective, PR can help earlier than, throughout and after the occasion.
Your “quiet interval” begins if you file an S-1 kind to register your securities with the SEC. This dictates what you possibly can and can’t say in public concerning your group. That’s why it’s essential to work intently along with your PR crew earlier than that second and all through the method.
Before the quiet interval
An IPO-savvy PR crew will rigorously plan, create and execute campaigns to positively influence market perceptions about your organization. This excellent news will resonate amongst your key audiences and create market buzz. An necessary key to success is creating concise and constant messaging that clearly communicates your organization’s enterprise worth.
During the quiet interval
In this case, “quiet” doesn’t imply “silent.” Though some elements of the corporate should stay quiet earlier than the IPO, your PR crew can preserve exercise to make sure messaging will get out to all the corporate’s key audiences. Product, staffing and partnership bulletins and, in some instances, buyer wins, are usually allowed.
In addition, a savvy PR crew also can coordinate with the general public trade’s media specialists to generate SEC-approved public consciousness of a inventory’s first buying and selling day.

Revisit initiatives that received placed on the again burner previous to the IPO – with heightened consideration in your firm. Now is the time to place them into motion. Maintain and develop relationships with the media contacts cast in the course of the IPO to maintain them knowledgeable. This contains disclosure communications, in addition to broader tales that present the breadth of your organization, imaginative and prescient and worth in the larger image.
In order to efficiently execute your PR exit technique, you will need to stay in lockstep with the efforts and objectives of the CMO and advertising and marketing crew.
Working with CMOs and inner advertising and marketing
Successful PR applications are extra than simply ways, they usually can’t function in a silo. PR efforts have to be undertaken in lockstep with the advertising and marketing crew – or, in the case of M&A, it is perhaps groups.
This means your advertising and marketing crew ought to be working with the PR crew from the get-go to align on objectives and strategy, together with:

Review objectives and plans collectively and keep in communication about shifts in the objectives of the enterprise and advertising and marketing initiatives.
Keeping your PR crew in the loop is crucial – that means, they’ll present steering and a gradual hand ought to something have to pivot (or in a worst-case situation, go sideways a la WeWork).

PR: Your exit technique companion
It’s primarily unattainable to go public with out the important providers {that a} PR crew offers. They create the communications plan and the relationships that will likely be essential components in any exit technique for enterprise. Avoid the widespread misconceptions of working with a PR crew and ensure your communication with them stays clear and fixed. The greatest practices famous above will assist make your exit technique profitable.

Written by Cara A. Sloman.

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