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Preserve Credibility in Difficult Times

Restating your financials puts up a red flag for investors. It also presents an opportunity to be seen as credible and forthcoming.

The Chinese character for "crisis" is a combination of two other characters: "danger" and "opportunity". When facing a restatement, you need to show investors how you are reducing their risk of investing in your stock. You can do this by clearly explaining what led to the situation, what you already have done to deal with it, and the systems you are putting in place to not only prevent this in the future, but enhance your growth.

Financial Relations Board will help you accomplish those goals:
  • We do the research on what other companies in similar situations have experienced in the restatement process and use this as a starting point for our plan.
  • We guide you in creating the key messages to share with investors through the entire process.
  • We develop the series of communications you need to make with investors and others, from the news release announcing the situation, to the conference call where you present the facts and your plan, to sharing the information with employees and explaining how this will likely affect them, to periodic updates on your progress (including quarterly conference calls, news releases, and investor meetings).
  • We monitor investor reactions and use this information to measure the effectiveness of our efforts to date and to refine our messages.

When the going gets tough, you need a partner who will give you no-nonsense counsel – while looking for opportunities to show management's good faith. Contact us.