By: Joshua Finley
Adam Graham is a name synonymous with innovation and leadership in the tech and marketing sectors. His journey began in 1998 with the founding of iChoose Radio, one of the first music streaming platforms, and has since included co-founding the award-winning digital agency Saint, leading Weapon7 within the Omnicom network, and serving as CEO of The Marketing Group Plc. Today, he is the Founder and CEO of JustFix, a tech company revolutionizing the home maintenance sector. The platform connects homeowners, tenants, and landlords with vetted professionals in under 30 seconds, offering a seamless experience akin to ordering a taxi or takeaway.
The Backbone of a Public Company
In his recent interview, Adam emphasized the importance of liquidity for companies planning to go public. Liquidity refers to the ease with which stocks can be bought and sold without affecting their price significantly. For a company like JustFix, managing liquidity effectively is crucial for maintaining investor confidence and stock value.
“Ensuring sufficient liquidity is vital,” Adam explained. “Illiquid Stocks suffer from violent swings in price, which can deter investors. The more liquid the stock, the more stable and attractive it becomes to potential investors.”
Common Mistakes made in Public Companies
Drawing from his extensive experience, Adam identified three common mistakes companies often made by Plcs:
Unequal Information Disclosure
One critical error companies often make during a flotation or reversal processes is failing to communicate equally with all investors and the public. “Information should be equal,” Adam stressed. “You need to put things out into the market at the same time so everyone gets to know about it. This transparency builds trust and ensures that no investor has an unfair advantage over another.”
Adam emphasized that in today’s information-driven market, maintaining fairness and transparency is not just a regulatory requirement but a cornerstone of ethical business practices. When companies fail to do this, they risk alienating investors, damaging their reputation, and potentially facing legal consequences. “Selective disclosure can lead to insider trading accusations, eroding the integrity of your company and leadership,” Adam shared.
Avoiding Insider Trading
Inevitably, when running a company, some people inside the company will know more about an upcoming business event than the wider public. Such people are deemed “insiders” and will be restricted from trading during “closed periods” which include the run up to an announcement of something material such as financial results or an acquisition, for example.
Insider trading is not only unethical, it’s also illegal and must be treated as a serious matter. To mitigate risks associated with managing insider information, Adam advises companies to implement rigorous internal controls and compliance programs. These programs should include training for executives and employees on the legal implications of insider trading and the importance of business ethics. Additionally, companies should establish clear protocols for the review and approval of all public statements, ensuring they are vetted by legal and financial experts.
Making False Statements
Finally, making overly ambitious or false statements can severely damage a company’s credibility. “While you need to show ambition, it’s equally important to set achievable targets,” Adam advised. “Investors get excited about a company that delivers on its assures consistently.”
Adam explained that while ambition is crucial for attracting investor interest and driving growth, it must be based on reality. Overpromising and under delivering can quickly erode trust and damage a company’s reputation in the eyes of investors. “When you set high expectations and fail to meet them, it not only disappoints investors but also raises questions about the management’s capability and integrity,” he explained.
Tips for Successful IPOs and driving Liquidity
Adam emphasized the importance of balancing ambition with realism. “The easiest thing to do would be to put really conservative stuff out there and always over-deliver,” he said. “But unless you show some level of ambition, investors aren’t going to be particularly excited by your business.” Setting realistic goals and consistently meeting them is key to building investor confidence. “It’s about breaking it down into more achievable chunks and working on the feasibility of those goals before making any public statements,” Adam advised.
Summary
Adam Graham’s entrepreneurial journey reflects his deep understanding of the intricacies of running a public company and navigating IPOs. By focusing on liquidity, setting realistic goals, and maintaining transparent communication, Adam is steering JustFix toward a promising future.
“Running a public company comes with an additional level of scrutiny,” he encouraged. “But with the right practice of corporate governance and a strong, results-oriented culture, success is within reach.”
Learn more about Adam Graham by visiting his website.
Published by: Martin De Juan
