BOULDER, CO: Metzger Associates has announced a new IR initiative designed to appeal to start-up and early-stage companies that in many cases could be years away from being publicly traded firms. The new unit is called the Capital Strategies Group, and will be spearheaded by a former Wall Street analyst Subhaash Kumar."Most early-stage companies are looking toward a liquidity-based event - meaning either an IPO or a buyout by a larger firm,
said CEO John Metzger. "We are providing a road map to that event."
Kumar comes to Metzger from wireless infrastructure firm Livemind, where he headed IR. His previous stints include having been an equity analyst for Montgomery securities and an asset manager for Loomis Sayles.
Kumar said he thought it was important that firms start acting like public companies well before their IPOs given that investors are presently holding private firms to a higher standard.
Kumar also said that most current IR programs are reactive and narrowly focused. He hopes to make clients understand that they can shape the perception of the firm to both investors and creditors early in the company's cycle.
"IR people usually begin working with the company about the time they IPO,
said Kumar. "Then after the IPO, they charge fees for some very basic services. We want to build value by helping companies understand what is driving their share price and how they can influence it, because in the final analysis, a company's shares are worth whatever the highest bidder is willing to pay."