Pitch book is for "pitching" an idea to the prospective client ("We (the bankers) think you should buy this company/sell this division/issue this bond")
An OM is "offering" the transaction to the target/investor ("We (the client from above) think you should sell us your company/buy this division/invest in these bonds, and here are our terms").
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would anyone be willing to share with me an actual pitchbook? doesn't matter if it's years old. I just want to get a general framework or outline of what goes into one.
would anyone be willing to share with me an actual pitchbook? doesn't matter if it's years old. I just want to get a general framework or outline of what goes into one.
one of my old lectures shared one with us (not hard or soft copy just through powerpoint), your best bet is meeting with someone in person. but it's not as exciting as you may think.
"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
But in a pitchbook, you have firm's qual, industry overview, comps, dcf, sometimes a/d model or LBO modelto illustrate how much the company is worth. However, your potential client doesn't even care what you put in there anyways...
a CIM is around 50-100 pages depending on your timeline and you send this after people looked at the teaser ( condensed version of CIM, usually 1-2 pages) and signed the NDA.
From my limited internship experience at a boutique M&A shop, the teaser is the 1-2 page document outlining the business proposition, the broad industry, and some general overview facts about the target company usually somewhat vague, no names or anything like that but does include position in the market, industry, how long it's been around etc. This goes around to all the potential investors that the firm thinks are appropriate, then only the ones that respond positively to the proposition are sent the next piece of the puzzle.
The Information Memorandum (as ppl at my last firm in Europe called it, assuming it's the same as OM) is a 30-50 page thing that includes: country and market summary, market potential for growth, detailed company info, its market share, competitor analysis, dcf, business model, management etc. This one goes out to those fin/strategic investors that have expressed genuine interest and have signed some sort of NDA, bc details of the deal shouldn't become public unless all parties involved including the target company think they should.
I'm interning at a boutique M&A shop also and my understanding is that the pitchbook is pitching the bank itself to a potential client. aka "let us be the ones to sell your company." I'm looking through a few now and 90% of the powerpoint focuses on the bank, it's key executives, list of previous transactions with tombstones, key strengths, etc.
Now I'm assuming the definition of a pitchbook might differ slightly from a bulge bracket to a boutique because when you have a name like GS/JPM/Barcap you wouldn't have to "sell yourself" as much as a smaller boutique with 30-40 employees. Is that a fair statement??
no, you are still selling yourself. Every bank is trying to get that 1 b m&a deal and you need to tell the client why he should choose you. The CEO of the company doesn't care if you are gs or a boutique nobody has ever heard of as long as you are good (of course, having the gs name means you had done the major transaction in the space some way or other, which is a major selling point). Kinda shocking after being immersed into this bs prestige talk huh...
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I thought a "teaser" is the 1 - 2 page document..... OM is closer to 50..
Pitch book is for "pitching" an idea to the prospective client ("We (the bankers) think you should buy this company/sell this division/issue this bond") An OM is "offering" the transaction to the target/investor ("We (the client from above) think you should sell us your company/buy this division/invest in these bonds, and here are our terms").
would anyone be willing to share with me an actual pitchbook? doesn't matter if it's years old. I just want to get a general framework or outline of what goes into one.
one of my old lectures shared one with us (not hard or soft copy just through powerpoint), your best bet is meeting with someone in person. but it's not as exciting as you may think.
That's illegal bud.
yeah...
But in a pitchbook, you have firm's qual, industry overview, comps, dcf, sometimes a/d model or LBO modelto illustrate how much the company is worth. However, your potential client doesn't even care what you put in there anyways...
a CIM is around 50-100 pages depending on your timeline and you send this after people looked at the teaser ( condensed version of CIM, usually 1-2 pages) and signed the NDA.
Confidential info.
After seeing your first pitchbook you'll never want to see one again.
hey can I staff a future banker to do some pitchbooks for me? I'll teach you and show you let me know. seriously
Only if I can list your bank on my resume. Go ask your MD and tell me what he thinks of the idea!
From my limited internship experience at a boutique M&A shop, the teaser is the 1-2 page document outlining the business proposition, the broad industry, and some general overview facts about the target company usually somewhat vague, no names or anything like that but does include position in the market, industry, how long it's been around etc. This goes around to all the potential investors that the firm thinks are appropriate, then only the ones that respond positively to the proposition are sent the next piece of the puzzle.
The Information Memorandum (as ppl at my last firm in Europe called it, assuming it's the same as OM) is a 30-50 page thing that includes: country and market summary, market potential for growth, detailed company info, its market share, competitor analysis, dcf, business model, management etc. This one goes out to those fin/strategic investors that have expressed genuine interest and have signed some sort of NDA, bc details of the deal shouldn't become public unless all parties involved including the target company think they should.
I'm interning at a boutique M&A shop also and my understanding is that the pitchbook is pitching the bank itself to a potential client. aka "let us be the ones to sell your company." I'm looking through a few now and 90% of the powerpoint focuses on the bank, it's key executives, list of previous transactions with tombstones, key strengths, etc.
Now I'm assuming the definition of a pitchbook might differ slightly from a bulge bracket to a boutique because when you have a name like GS/JPM/Barcap you wouldn't have to "sell yourself" as much as a smaller boutique with 30-40 employees. Is that a fair statement??
no, you are still selling yourself. Every bank is trying to get that 1 b m&a deal and you need to tell the client why he should choose you. The CEO of the company doesn't care if you are gs or a boutique nobody has ever heard of as long as you are good (of course, having the gs name means you had done the major transaction in the space some way or other, which is a major selling point). Kinda shocking after being immersed into this bs prestige talk huh...
OM is a very specific thing and is a more formal. Pitch Book is just a presentation for banks to try to win new business
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