Going public may be one of the most taxing and time consuming things you do as a company. Not only do senior management consistently underestimate the workload, but they are shocked by the probing nature of their audiences, whether about how much the seller stands to make personally, or in areas of commercial sensitivity. No matter how well prepared the management team is, when asked if things ran as expected, the answer invariably is a unanimous 'no'. While there are processes to follow and principles to rely on, engaging with the right Public Relations ('PR') adviser who knows the process, the sector you operate in, and has strong relationships with your audiences and other advisers, can take away some of the strain.

By joining AIM, companies are able to access growth capital within a flexible regulatory system and at the same time be part of an international market with sector knowledge, expertise and an appetite for risk. By its very nature, the journey to and beyond AIM will attract fans and detractors in a company's stakeholder base. The key to being a successful company is to build and protect your reputation and brand.

The audience to whom a company will be communicating goes well beyond investors. It includes all stakeholders, including employees, customers, suppliers, partners, analysts, online investor services, rating agencies, capital providers, regulators, unions, governments, opinion formers, trade associations, and media. Today, 'the media' is a broad term, including online, blogs, commentators, editors, correspondents, investment columns, trade, social and broadcast (radio and TV). In the age of 24-hour news, the speed at which information changes hands is breathtaking. For small companies, worrying about whether CNN will pick up good or bad news will not be relevant, but what investors are saying on internet message boards will be. Communication across all stakeholder groups must be consistent and viewed with equal importance as the lines defining the groups are often blurred; your employees might also be your shareholders.

A common question posed by companies looking to join AIM is how much influence public relations can really have on the outcome of an IPO. Media commentary, analysis, message boards and blogs are key sources of information among investors during an IPO, so clear communication really does matter. The principles of a successful communications strategy around admission are to have a strong credible story, be well organised with a clear plan, ensure your 'fan club' is built and ready to support you, and position the IPO as a means to an end, not an end in itself. The journey is just as important as the destination.

• have a strong, credible story
• be well organised – have a proper plan
• have the right friends at the right time
• position the IPO as a means to an end – not as an end in itself

It is stating the obvious to say that companies need to have a strong credible story, but the story needs to be just as compelling to an investor as it does to a journalist, and the two audiences often view AIM companies in different lights. Journalists, analysts and investors will look for the positive core story but they will also be sceptical. In smaller AIM companies, a journalist often takes on an investigative role and becomes less of a reporter and more of an investment adviser. He may pick up on issues that matter less to an analyst but could detract from the core story. Good communications around the IPO becomes as much about anticipating questions and having robust answers as it is about the overarching narrative.

The company should start by thinking about how the story might be heard in the newsroom and on a trading floor. When the correspondent has one minute to pitch his story to the editor in morning conference, what angle will he take to make the story a 'must read'. And when the analyst briefs his sales desk, what will they say when they pick up the phone to their clients? The equity story will focus on the growth and the 'uniqueness' of the company. It may be the appeal of the sector in which it operates that makes the equity story attractive. One PR issue specific to AIM is that small companies often come with big personalities and as a result, the track record of the company and its management will be closely scrutinised.

This may be the case, but it shouldn't detract from the core story although it may be an issue to be managed. Part of the story is the management's track record and conviction. Are you committed to joining AIM and are you ready for the new levels of transparency and disclosure? We have seen executives hesitate at this question or talk about other options and it looks awkward. Having the mindset to embrace transparency and governance as a public company is a giant step in the IPO process. If a journalist believes market conditions to be difficult and receives a less than confident reaction to the question, his confidence that the float will be taken up at the right price will evaporate and he is likely to find that a story in itself. One of the most frequently asked questions by a journalist pre- and post-IPO is: 'Why list in London and why on AIM?'

The use of the proceeds from the flotation will be analysed by the investment community as part of the equity story – will it fund the next stage of growth for the company; is it being used to pay down debt; or will the proceeds pay for the existing shareholders to exit their holding?

There will invariably be the two-hour powerpoint presentation for analysts, but can the CEO tell the story in a compelling way? If you sat next to him at a dinner party and he told you the business story in a couple of minutes, would you be getting your cheque book out?

There is no need for jargon and 'banker speak' in a good story if the key facts are honest and compelling, useful for investors, and indispensable for timestarved correspondents. A good spokesperson for the company is a tremendous asset but as is often the case with international companies, management teams may not have English as their first language. This can be overcome with good media and presentation training and is highly recommended. Needless to say, there is a fine line between being over-promotional and telling a compelling story. The skill is to find the balance and to resist over-promising; reputations are made and lost by tipping the balance.

Having a clear communications strategy is part of the planning process and it should take you well beyond the admission date. It is about thinking creatively to determine the news angle or hook that goes beyond the corporate story. It is about developing the company's website to tell the story as this is often the first port of call for a newcomer to the story. It is imperative to work closely with the other advisers on the team to ensure publicity guidelines are followed to remain within the regulatory framework pre-IPO and to ensure the investment case set by the bankers is not compromised. When the communication strategy is agreed, it will be incorporated as a separate workstream into the IPO timetable and managed by regular conference calls, a strict timetable of deliverables and responsibilities, and rehearsals. International companies will have the added complication of different time zones and busy travel schedules.

The communications strategy and plan is executed around the IPO timetable which has very little flexibility once the Intention to Float announcement ('ITF') is released to the market. Ideally, a PR adviser is appointed well before this date in order to raise the awareness of the business while remaining within the guidelines of regulation. It is around the events of the IPO timetable that the PR activity intensifies to the outside world. This may be the first time that your external stakeholders are hearing your story from a management team that may not be well known within the UK and with assets outside the country. The communications objectives should be set with the strategy in mind which will vary according to issues or vulnerabilities the company might be facing. The objectives are to introduce the management team, tell the story, identify the news hook or media angle, focus on the investment case, link the company with sector or broader trends, work hard to argue the valuation case, use third-party commentators to endorse the story, reach out to investors by targeting specific media, and to set long-term expectations.

Looking for the media-friendly angle needs creativity as some issues specific to AIM are size and whether the company has a well-known brand, management team or assets in the UK. These issues may act as barriers with some media, but there are ways to overcome them. The use of good photographs can never be underestimated. There have been instances where a UK national newspaper has published a good photograph with nothing more than a few sentences below the photo containing the key message the company wishes to convey; a fantastic result.

Media will engage with a story when there is corporate news flow, but there is an opportunity to begin building relationships between news with background briefings. However, beware of the sceptical journalist or editor and be creative whilst operating in the realms of regulatory requirements. It may be the case that the appeal to the journalist is the sector and that the corporate story fits into a broader piece. Attracting the investors you want can be done by targeting the media they read, whether it be trade journals, share tip columns, or online investment services where private investors can research and trade shares.

Having the right friends at the right time will provide an invaluable support during and after the IPO process. A company should begin identifying and building their stakeholder 'fanclub' early on. Look to friendly media who understand the sector, the brand, the company or the management, and to non-aligned and house analysts, employees and third-party commentators such as trade associations, investors, or partners. Building and maintaining strong relationships in the context of the legal restrictions will pay dividends in the long term.

When building support amongst the analyst community, the tendency is to neglect the non-aligned analysts. Companies will want these analysts to begin writing about them after admission so early relationship building is important. Holding a group presentation to the sell side can often be done before pricing or if not, after admission. Hosting site visits is often welcome by analysts as is access to management.

The most important and loyal supporters are your employees; they are a company's best ambassador. Demotivated or disenfranchised employees in today's age of the internet could create a difficult situation. Implementing an internal communications programme to fit with the corporate communications strategy and the regulatory guidelines around the IPO will ensure employees feel like they are part of the process and will engender a positive response to the company's strategy of going public.

• introduce the management to all key stakeholders
• explain what you do
• find a media-friendly angle
• keep the focus on the business and investment case
• establish competitive advantage
• link the company to larger, positive industrial/economic trends
• win the argument on valuation – method and value
• gain positive endorsements
• attract the investors you want
• set long-term expectations

• under the magnifying glass
• disclosure requirements
• financial calendar work
  • issue management
  • media advocacy
  • building and maintaining analyst and media network
• ongoing news flow to support trading

And finally, your IPO is a means to an end. Life beyond admission day brings with it new challenges but establishing a positive communications message from the outset will enable a company to negotiate the journey. Remember, the company will now be under the spotlight as a public entity.

Building relationships with the media, managing market and media noise, and observing disclosure requirements will all continue after admission. Once the company is admitted to AIM, management may be tempted to refocus on the business and may neglect its new stakeholders. It is important that the commitment to best practice in investor relations ('IR') demonstrated from the onset is maintained. It is worth noting that the day of admission will be one of the few times that a company will know exactly who their shareholders are as the list will change daily, reflecting trading and changes in share ownership. An effective IR programme will keep your shareholders close.

The objective of the IR programme is to ensure the value of the company is reflected in the share price. The PR adviser will often provide the IR support, as the two should mirror the company's strategy and ethos. Building a following of non-aligned analysts increases the breadth of investors the company can reach out to. Private clients can be accessed through specialist brokers who, in turn, can be introduced to the company's story by the media. If there is a good share-tip in an investment magazine read by private clients, their broker may express an interest to meet the company and listen to the story.

Between the rigorous financial reporting calendar and reporting requirements, news flow, site visits, and creative story ideas can maintain the moment um and keep the story intact. Clear communication with all stakeholders on the road to admission to AIM and beyond will not only help the company navigate the twists and turns of the journey, but will build and protect the company's reputation and brand. And that matters.