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How To Build A Winning Pitchbook

An investment banking pitchbook is very important for securing a deal. Pitchbooks help convince clients the pitch you are offering is the best deal in the market. Hence, analysts and associates in investment banks devote … Read More

Investment banking pitchbook

An investment banking pitchbook is very important for securing a deal. Pitchbooks help convince clients the pitch you are offering is the best deal in the market. Hence, analysts and associates in investment banks devote significant time analysing financials to prepare a good pitch for clients.

Structure Of A Pitchbook

An Investment Banking Pitchbook Contains The Following:

  • Title page – containing a title, logo and date
  • Table of contents
  • Executive summary, which provides an outline and reason(s) for pitching as well as call to action
  • Introduction of the bank and participants in the meeting
  • Bank’s record
  • Industry overview/trends, charts and graphs that depict current market situation – this is crucial, as it helps convince customers the time is ripe to buy the services
  • Valuation section, determining the price and its impact (football field analysis) – valuation methods include DCF, comparable company and precedent transaction analyses, and SOTP
  • Transaction strategies the bank can use, depending on the client, such as IPO issuance, disposal of business or forming an alliance
  • Appendix, comprising current and future financial models and their effects (pro forma analysis)

Creation Of a Pitchbook

Typically, a senior manager, such as a managing director or vice president, prepares an outline of the pitch based on the financial solution(s) a potential client is looking for. Analysts or associates then build on the outline for a complete analysis.

The investment banking pitchbook is created keeping in mind current industry trends and data; the process may consume a few days to a few weeks. It may have to go through several iterations to match client requirements. After it is completed, senior members of the investment banking team present the pitch to the bank or client.

Some points to consider in building a winning pitchbook and successfully securing deals are given below:

  • Avoid information overload

More is not always better. Including a lot of information in the form of text and data points in a single slide can hinder comprehension. Keep the presentation simple, and include three to four key points in a slide. Remember, it is not the quantity but the quality of information that matters.

  • Use visuals

A successful pitch holds the client’s interest. The use of short and engaging headlines to summarise the key points on a slide, as well as relevant visuals, can enhance information retention. Visuals are important, as the human brain can process them faster than text. In addition, data visualisation catches the attention of clients faster. A key point to remember is that the visuals used should be pertinent to the content on the slide.

  • Make an impression with sufficient analysis

It is important to analyse the history of the company and effectively present the reasons a deal makes sense strategically. The analysis of both the target and the acquirer is paramount; remember, a brief and accurate analysis can be a deal clincher. By providing a detailed valuation of the target, you can impress your clients with your financial acumen. It is very crucial to analyse how the deal will be structured and financed. Use various valuation methods to reach these conclusions. For example, comparative analysis may be used to benchmark the client’s business against that of competition. This type of analysis makes sales and revenue forecasts and uses valuation methods such as financial modelling and DCF analysis.

  • Stand out from competition

To stand out from competition and clinch a deal, you must know the market and understand the financials that make sense or what can be a better deal for a specific client. In other words, sufficient research and presentation of error-free data are key to a successful pitch. Typos or other mistakes may undermine your credibility. Conduct research on the history of the company to present relevant information and create a winning pitch.

  • Use most recent data

A pitchbook is an important marketing tool for an investment bank. It must be accurate while serving as a platform to introduce the bank to potential clients. Therefore, using up-to-date data is very crucial to the preparation of a winning pitchbook. This is necessary not only to persuade clients to accept your deal but also to beat competition.

The creation of a pitchbook may involve several drafts that undergo a lot of changes to ensure accuracy. Investment bankers should make sure their pitchbooks embed the latest industry information – a gateway to success.

Author: admin