Digital-First Transactions
How to leverage 'digital' for your next transaction
As our world has been reshaped by a global health crisis it is important to consider how digital services can be used to ensure your deals run smoothly.
We look at some of the advantages a digital-first strategy can bring to your transaction and how you can increase offer-participation and lower your costs.
What is a digital-first transaction?
A digital-first transaction strategy involves offering shareholders an online method of exchanging information during a transaction.
Traditional transaction strategies, by contrast, involve the physical mailing or emailing of print-ready information packs. This method requires the recipient to proactively take steps to complete the process. There is a break in the pathway that ultimately translates to lost opportunities and sluggish participation rates.
Digital-first transaction strategies optimize the process. They streamline the process. The recipient receives an email containing a personalised link which takes them directly to a summary of their preloaded information. They can then review and submit their instructions with only a few clicks. It creates the 'absolute path of least resistance' that is so important to the timeliness of transactions in today's ever more digital world.
For those managing corporate transactions, opting for a digital-first strategy provides a flood of real-time analytics that simply cannot be achieved using traditional methods. Live, actionable, business intelligence flows through from the market and puts Deal Teams firmly in control of the entire process. It empowers Issuers and their teams to act with information that can optimize the transaction.
Key reasons to lead with a digital-first strategy
Multi-Channel Distribution
Reach your shareholders online through digital marketing; personalized email campaigns; through PR and via partnered channels to drive awareness.
Optimize with Transparency
Track uptake and channel performance throughout the Offer period. Identify geo hot-spots and age groups to optimize engagement. Give your Board & Leadership real-time analytics.
Error-Free Time Savings
Form controls, built-in calculators, pre-filled details… These features save significant time and ensure every application is acceptable. Less errors mean more deals close faster.
The digital age is leveling the playing field for the everyday investor and they want their voice heard - or at least the opportunity to invest in a good thing.
It's important for all Issuers to not to fall into thinking that these investors aren't watching; and/or won't bring significant money to the deal so aren't worthwhile engaging.
There's nothing quite like a misstep in the planning and execution of an Offer to remind everyone how loud these Retail Investors can be.
Institutional investors discreetly let their views about individual offers be known but retail investors can be highly connected and influential people with a platform. Press like this can call into question ethics and company values at a time when all eyes should be on the success of the capital raising and the renewed outlook.
Global regulators too are proactively monitoring equitable access for all investors.