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5 Reasons to Appoint an Investor Relations Function in BME Growth

September 19, 2025

In BME Growth, many companies delegate investor relations to the CEO or CFO, overloading their agenda and reinforcing dependence on a single figure. Professionalizing Investor Relations not only builds trust and liquidity, but also elevates corporate governance standards

Why Investing in Investor Relations is Strategic for a BME Growth-Listed Company

Access to BME Growth opens the door for companies to the capital markets, providing liquidity, visibility, and access to institutional funding. However, being a listed company also entails a new standard of transparency, communication, and accountability towards investors, analysts, and regulators.

In this context, Investor Relations (IR) is no longer a mere reporting channel but rather a strategic asset that directly impacts valuation, cost of capital, and shareholder stability.

A key issue in this segment is that, in practice, the IR function often falls on the CEO or CFO. Absorbed by day-to-day operations and business strategy, they also take on the responsibility of market communication. This dynamic not only leaves the investor agenda underserved but also reinforces the perception that the company is overly dependent on the CEO, something institutional investors in particular penalize, as they look for robust and scalable corporate structures.

Below are five reasons why it is critical to professionalize the IR function in a listed small cap:

1. Strengthening credibility and lowering the cost of capital

Consistent financial and strategic communication builds trust and, as a result, creates a credibility premium that translates into tighter spreads in debt placements and greater investor appetite in capital increases.

2. Optimizing the shareholder base and enabling future transactions

An active and professional IR helps develop a more stable, institutional, and long-term shareholder base, reducing speculative turnover. This facilitates subsequent corporate actions (SPOs, debt issuances, block trades) under more favorable conditions.

3. Enhancing visibility and qualified information flow

BME Growth, by itself, does not guarantee analyst coverage or media attention. A strategic IR agenda ensures the company gets on the radar of professional investors, family offices, and sector analysts, catalyzing liquidity in the stock and generating deal flow for the company itself.

4. Mitigating volatility and protecting valuation

In a market characterized by relatively lower liquidity, information asymmetry can lead to disproportionate price swings. An IR with a structured narrative and strong responsiveness ensures proactive management of expectations, softening volatility and preserving valuation.

5. Elevating corporate governance standards

Delegating the IR function to a dedicated role, rather than overburdening the CEO or CFO, signals that the company is professionalizing its structure, reducing its dependence on a single executive, and adopting practices akin to larger market segments. This qualitative leap strengthens confidence among investors, analysts, and key stakeholders.

Conclusion

In the BME Growth ecosystem, where high-growth projects coexist with companies still in consolidation, the Investor Relations function becomes a tangible competitive advantage. It is not just about meeting periodic disclosure requirements, but about actively managing the relationship with the market to optimize capital structure and maximize shareholder value.

At Rubicon Financial Advisors, we view IR as a key vector of value creation, complementing both debt and capital structuring. Our approach combines strategic vision, market discipline, and financial storytelling so that companies not only gain access to capital but also build strong and lasting relationships with the investor community.

Rubén González
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