1.

PitchBook Introduction
2. Why we create a Pitch Book
3. The structure and content start to differ based on what the bank is pitching
4. Type of Pitch Book
a) Sell-Side Pitch Books for Sell-Side Mandates
b) Buy-Side Pitch Book Examples
5. Other type of Pitch Books
6. Why do you spend so much time on investment banking pitch books as a analyst?
7. Components of a pitch book (Bank Introduction)
a) Pitching your team as the advisor
b) Credentials
c) Team management
8. Components of a pitch book (Market Update)
a) Industry analysis
b) Deals in sector
9. Components of a pitch book (Transaction Strategy)
a) Strip profile
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10. Components of a pitch book (Valuation Methods)
a) Comparable company analysis
b) Precedent Transaction Analysis
c) Football field analysis
11. Components of a pitch book (Appendix)
a) Revenue Projections: Management vs. Consensus
b) EBITDA Projections: Management vs. Consensus
c) Summary Profile of Equity Shareholders
12. Case Study I
13. Case Study II
14. Share Price Comparison
15. Databases use to create PitchBooks
16. Company Profile (Introduction)
17. Research commentary
18. Strategic slide
19. Types of Profile
20. Benchmarking
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 Investment banking, pitch books refer to sales presentations that
a bank uses to persuade a client or potential client to take action
and pay for the bank’s services

As the name suggest, Bankers use this book to pitch them deal to
earn profits. Pitch books typically contain sections on the merits of
the transaction; analysis of potential buyers or sellers; pricing and
valuation information; as well as key risks to mitigate

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 Growth: Your prospective client is looking for growth

 Problem: The potential client’s growth rate has been slowing

down

 Solution: Acquiring a growing company can meet the potential

client’s need for growth

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We’ll look at three broad categories here:
1. Sell-side mandates (i.e., convince a company to sell itself)

2. Buy-side mandates (convince a company to acquire another

company)
3. Financing mandates (raise debt or equity)

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Sell-side M&A PitchBooks:

The main purpose of a sell-side M&A pitch book is to convince the

client why they should choose the investment bank to handle the
transaction. It comprises a list of potential buyers of the client’s
business, valuation summary, recommendations, list of the bank’s
successful deals in the client’s industry, and an appendix section

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Including a few slides on how your bank would position the company and make it
attractive to potential buyers

For example, if the firm is a traditional services provider with a growing online presence,
you might attempt to spin it as a “SaaS” (Software-as-a-Service) company – within reason

If you’re pitching a large company on a divestiture, you might explain how you’ll make
the division sound like more of a standalone entity – meaning that buyers won’t have to
spend as much time and money integrating it

Next, you’ll lay out the company’s valuation and the price it might expect to receive in a
sale

Common elements include the “football field” valuation graph, output of a DCF model,
comparable public companies, and precedent transactions

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Investment banking pitch books for buy-side M&A deals follow a similar structure, with a
few key differences:
 The “Positioning” part in the beginning might be more about the types of acquisitions
the company should pursue and how your bank will help close these deals.
 There may be valuation information, but the purpose will be different: in buy-side
deals, you value the buyer to estimate how much a stock issuance to fund the deal
might be worth. You might also include quick valuations of potential targets.
 Instead of profiling potential acquirers, you’ll profile potential targets. This list is often
longer than the list of potential buyers because a large company could, in theory,
choose from hundreds or thousands of potential targets to acquire.

Buy-side M&A pitch books are often shorter than sell-side ones, but they can be more
tedious to create due to the longer profile lists
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General Pitch book:

Provides a general overview of the firm and contains important

information such as past successful investments, recent trends in the
market, current deals, and information about profits

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Deal Pitch book:

Prepared for specific deals, focusing on how the investment firm can
deliver services that cater to the client’s financial needs. For example,
if the pitch book is for an IPO, it will outline how the offering will
benefit the potential client. It will also show comparable IPOs

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Management Presentations:

Presentations are used to pitch potential investors after the company

reaches a deal with potential clients. The presentation includes
information about the client’s company, its investment needs, financial
ratios, and details about the project that needs to be financed
For management presentations to be comprehensive, the investment
bank must work directly with its clients to make sure that the pitch
contains as many details about the company as possible

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Transaction Strategy:

Provides details of the strategy that the bank will use to meet the
needs of the client, depending on whether the client wants to issue an
IPO, sell a business, or find a strategic partner. The bank provides
details of the potential buyers in an M&A transaction, the amount of
capital the bank can raise, the fee to be charged, and the timing of the
transaction.

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Valuation Methods:

Valuation methods it used to reach certain conclusions. For example,

the bank may use comparable analysis to benchmark the client’s
business against other similar firms in its market. It obtains the
figures using sales, revenues, and valuation multiples like PE and
trading multiples.

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Many other presentations get labeled “Pitch Books” even if banks
pitching their own services do not create them
For example, management presentations for pitching clients to
potential buyers are often labeled “Pitch Books”
However, they’re just extended versions of the Confidential
Information Memorandum (CIM)
And in the EMEA region, they’re the same thing because CIMs tend
to be more like presentations than written documents

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Attention to Detail – You’ll spend a lot of time making sure your punctuation is consistent, that
all the footnotes are in the right spots, and that the dates are correct

Dozens of Revisions – Senior bankers love to make changes well past the point of diminishing
returns. It’s not uncommon to see “version44” at the end of file names

Conflicting Changes – The Associate wants one thing, the VP wants another, and the MD wants
something else. And if you implement the MD’s version based on seniority, the others may
fight back

Random Graphic Design Work – This one is more of an issue at boutique firms that lack
presentations departments, but sometimes you’ll have to spend time creating fancy visual
elements on slides – which end up being useless once your MD changes his mind and rips out
those slides
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Bank Introduction
 The bank uses this section to introduce who they are and why they are the best in the
industry. It

 Provides an overview of the transactions that it has handled successfully and some of
the industry awards it won in the past

 Information about how it ranks in the industry in comparison with its competitors

 Board of directors and management people involved in the deal

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The first section of investment banking pitch books introduces your firm’s platform, recent transactions, and team
Overview of Jefferies

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Market Update
 Highlight current state of the financial markets

 You must demonstrate a smart perspective on the market and provide convincing
reasons why now is the best time to invest

 Include charts and graphs to describe the current trends and market position in the
client’s industry

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Transaction Strategy
 Provides details of the strategy that the bank will use to meet the needs of the client
like IPO, sell a business, or find a strategic partner

 Provides details of the potential buyers in an M&A transaction, the amount of capital
the bank can raise, the fee to be charged, and the timing of the transaction

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Valuation Methods
 Valuation methods it used to reach certain conclusions in short it gives backing to
your thought of selling or convincing the client

 For example, the bank may use comparable analysis to benchmark the client’s
business against other similar firms in its market

 Valuation part consist of lot of quantitative stuff like revenues, EBITDA and other
valuation multiples like PE and trading multiples.

 Other valuation methods that can be used include financial modeling and DCF
analysis (already studied by you people)

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 Valuation
Transaction
Date Target Value ($m) Buyers EV/Sales EV/EBITDA EV/EBIT

01/24/2017 Current Ltd 2,350 Average Limited 1.9x 9.4x 11.2x

04/19/2016 Recent Inc 6,500 Bohemia Industries 1.4x 8.0x 12.6x
04/19/2014 Past Co 2,150 Other Group 1.3x 8.7x 12.1x
11/07/2014 Historical LLP 450 Junior Enterprises 2.3x 11.1x 13.6x
11/01/2012 Old Group 325 Mnature Company 5.1x 18.8x 21.5x
10/07/2011 Dated Enterprises 150 Micro Partners 2.1x 9.3x 13.2x
Average 2.3x 10.9x 14.0x
Median 2.0x 9.4x 12.9x

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Appendix (last but not the least)
 Contains backup information of the information provided in the body of the pitchbook

 It includes information on the assumptions used in calculating future projections,

financial reports, WACC calculations, etc.

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Commentary:
 Gross Common Share Count: 58,739,693(1) Bank /
Investments Others
 Major institutional investors represent approximately
Banks: 3%
97% of share ownership Individuals 2%
 Largest institutional shareholders include: / Insiders:
2%
o Putnam: 8,304,110 (14.1%)
o Fidelity: 8,290,410 (14.1%) Hedge
Funds
o Vanguard: 4,677,223 (8.0%) 12%
o BlackRock: 3,110,681 (5.3%)
 Insiders own 2-3% of shares outstanding:
o Seamus Mulligan (Director): 1,048,008 (1.8%)
o Bruce Cozadd (CEO): 226,199 (0.4%)

 Given the lack of activist investors and the high Investment

percentage of shares held by traditional investment Managers
managers, the chances of a challenge to a potential 81%
deal are low

Source: Company proxy statements, investor filings, and Capital IQ. 33

(1) As of June 30, 2017 10-Q filing.
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 CIQ

 FactSet

 MergerMarket

 Research reports

 Deal logic

 Boardex

 Any many more…

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Company profile consisting of all the following

 Company Logo

 Business Overview:
 What the company does (service provided/product sold)
 Company strategy
 No. of employees and countries operated in
 Shareholders
 Key management
 Latest quarter revenues
 News run for recent management changes, acquisitions or divestment,
product launches...
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 Sales Split:
 Graph any possible revenue splits (by geography, product, sales channel..)

 Product Portfolio
 Pictures of products and their description (3 - 6)

 Share price development

 Recent share price development (LTM)

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Description Financial
 Operate in consumer products and services 2015 2016 2017 2018 2019
Revenue 100 125 175 225 300
 Operates through 3 segments %growth 25.00% 40.00% 28.57% 33.33%
 Beauty & Personal Care: consist of Deodorants, EBITDA 55 75 50 60 75
creams etc. 42% %growth 36.36% -33.33% 20.00% 25.00%
 Foods & Refreshment: Consist of Ice-creams and %Margin 55.00% 60.00% 28.57% 26.67% 25.00%
other food products. 37% EBIT 45 60 40 50 60
 Home Care: Consist of hand-wash and other %Margin 45.00% 48.00% 22.86% 22.22% 20.00%
cleaning stuff. 21% Net Income 25 30 25 30 35
 Founded in 1930 and is headquartered in Rotterdam,
the Netherlands. Share price movement-LTM
 Employees 155,000 across 190 countries

Recent News
 Jan-20: Completion of Horlicks acquisition from GSK for USD xxxm

 Nov-19: Dispose of direct application business in Central America for

USDxx

 Oct-19: Complete sale of Alsa for consideration o

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Consumer profile

Company Logo Financials Description

Revenue(2020):  Operate in consumer products and services with 3 company segments

 Beauty & Personal Care, Foods & Refreshment and Home Care
EBIT(2020):
Unilever  Founded in 1930 and is headquartered in Rotterdam, the Netherlands
Market Cap:  2.5bn people use products on daily basis
 Employees 155,000 across 190 countries

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