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Hello everyone,

I am an analyst at a boutique. I had no really formal training before I started but I do come from a finance major. I have a lot of questions about the IB process that I am afraid to ask at this point.

Things such as, what does it mean to be engaged/mandated? What is the process from pitch to closed deal? what is a CIM for? what is a management presentation and a lenders presentation?

I use these materials all the time but I dont understand exactly where they fall in the whole IB process.

Are there any materials that someone could send me so that I can finally understand wtf is going on. I feel like an idiot not knowing.

Thanks WSO

Comments (17)

  • Rumplesmoothspin's picture

    One word of advice - ask these questions now and not in a years time. No one expect you to know everything. Apart from that, scan M&I for their articles which covers a few of the things you have mentioned.

    "When do you sleep?...Sunday."
    London, the city that always sleeps...fuck.

  • illiniPride's picture

    Ask tons of questions, but never ask the same question twice.

    Leadership can be defined in two words: "Follow Me"

  • Whiskey5's picture

    You have to take the FINRA Series 79, right? The 79 does a very good job explaining the M&A process. Most would advise you to skip reading the material, but in your case, it sounds like you need it.

    Make sure you get Knopman Financial Training, they are the best.

    But to give you a brief overview, sell-side M&A is as follows:

    Pitch --> If mandate is won --> Engagement letter (fees, legal, etc) --> Teaser (shortened version of the CIM) / CA distribution --> sign/return of CA --> CIM distribution --> Mgmt presentation --> Due diligence --> Closing dinner

    Of course this is very simplified but it captures the essence of a M&A sale. You can also have an auction where you hold first and final round of bids.

  • CompBanker's picture

    jv77 wrote:
    Things such as, what does it mean to be engaged/mandated? What is the process from pitch to closed deal? what is a CIM for? what is a management presentation and a lenders presentation?

    Engaged / Mandated = When the client officially signs your bank up to execute the deal.
    Deal process = See above.
    CIM = Confidential Information Memorandum = Book of materials on the company that describes its business / industry / growth plans / financials / investment highlights. It is widely disseminated to prospective buyers as a way to educate them on the business.
    Management Presentation = Presentation given to certain prospective buyers (individually). Enables them to meet the management team and learn more about the business.
    Lender Presentation = Another presentation given by management to a private equity firm's lenders for the same purpose as the management presentation. Usually occurs late in the process when you're down to the final buyer, but not always the case.

    CompBanker

  • Kanon's picture

    OP - how long have you been on the job? In general, there's a sort of 'window of opportunity' for when you can ask a lot of beginner questions and no one will judge you - in fact, they like it that you are being good about asking questions to learn more.

    If some time has passed, you may want to answer a few of your questions yourself (and the M&I and the book above are good for that). But even if some time has passed, you can still ask questions about why certain things are done. Just find people when they have a free moment and they'll teach you if they're good bosses that have an interest in your growth.

  • In reply to CompBanker
    happypantsmcgee's picture

    CompBanker wrote:
    jv77 wrote:
    Things such as, what does it mean to be engaged/mandated? What is the process from pitch to closed deal? what is a CIM for? what is a management presentation and a lenders presentation?

    Engaged / Mandated = When the client officially signs your bank up to execute the deal.
    Deal process = See above.
    CIM = Confidential Information Memorandum = Book of materials on the company that describes its business / industry / growth plans / financials / investment highlights. It is widely disseminated to prospective buyers as a way to educate them on the business.
    Management Presentation = Presentation given to certain prospective buyers (individually). Enables them to meet the management team and learn more about the business.
    Lender Presentation = Another presentation given by management to a private equity firm's lenders for the same purpose as the management presentation. Usually occurs late in the process when you're down to the final buyer, but not always the case.

    You should get paid for your contributions around here dude.

    If I had asked people what they wanted, they would have said faster horses - Henry Ford

  • In reply to happypantsmcgee
    jv77's picture

    happypantsmcgee wrote:
    CompBanker wrote:
    jv77 wrote:
    Things such as, what does it mean to be engaged/mandated? What is the process from pitch to closed deal? what is a CIM for? what is a management presentation and a lenders presentation?

    Engaged / Mandated = When the client officially signs your bank up to execute the deal.
    Deal process = See above.
    CIM = Confidential Information Memorandum = Book of materials on the company that describes its business / industry / growth plans / financials / investment highlights. It is widely disseminated to prospective buyers as a way to educate them on the business.
    Management Presentation = Presentation given to certain prospective buyers (individually). Enables them to meet the management team and learn more about the business.
    Lender Presentation = Another presentation given by management to a private equity firm's lenders for the same purpose as the management presentation. Usually occurs late in the process when you're down to the final buyer, but not always the case.

    You should get paid for your contributions around here dude.

    Seriously, thank you Comp. Very helpful.

    New question for anyone. What is a bank book?

  • captainkoolaid's picture

    Disclaimer for the Kids: Any forward-looking statements are solely for informational purposes and cannot be taken as investment advice. Consult your moms before deciding where to invest.