SRS Labs

SRS Labs was an audio technology engineering company that specialized in audio enhancement solutions for wide variety of consumer electronic devices. Its customers and licensees included: Microsoft, Samsung, LG, Toshiba, Vizio, Dell, HP, Sony and ViewSonic.

The Story

SRS Labs had a recognizable brand, high-profile customer base but lacked a cohesive corporate identity. The company engaged Liolios to develop a new communications strategy and proactive investor marketing campaign in order to effectively communicate the company’s new message to Wall Street.

Strategy & Tactics

  • Initiated a perception study focused on current shareholders and analysts, as well as peer holders
  • Evaluated all investor materials and communications history
  • Recreated investor presentation to align with new business and communication strategy
  • Conducted ongoing, in-depth competitive research to track competitor valuations and best practices
  • Established a proactive six-month roadmap to help educate the capital markets of the company’s new positioning, including Liolios-sponsored road shows, sell-side conferences and weekly investor calls
  • Introduced management to a new target investor or analyst every week
  • Committed to a non-deal marketing event or investor conference every month
  • Liolios attended board meetings and opined on M&A opportunities
  • Liolios presented quarterly Waypoint reports to the board of directors and senior management

Results

  • In 2012, SRS was acquired by DTS (NASDAQ: DTSI) for $113M (41x EBITDA)
  • During the engagement, SRS’ stock price appreciated 93% and average daily dollar volume increased more than 400%
  • Institutional ownership increased from 70% to 83% of the public float

Company Info

Location: Santa Ana, California
Industry: Technology
Year of Engagement: 2008

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