How long/many hours does it take to put a sell side book on a company together?
Wondering average time and man hours to put a sell side pitch book together.
For a private placement
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My take:
Sell Side Pitch on Public Equity: You 'll have a LOT of public information, all the financials you need and you ll also have "Street" projections.
PPM or Private Placement Memorandum: You'll have in general LITTLE data on the Company, no projections, no research reports...
But, it really doesn't matter since in a PPM e.g. you 'll work closely to the Company so you will also have data.
I don't think there is an "average" but I can garanty that a "good" pitch takes a LOT of time... in this case if you are doing a Sell Side pitch by yourself, the items that will take the most time are the following: - Finding AND Profiling Potential Buyers (both Financials and Strategic): At least 10 hours - Valuation: A good DCF, Trading Mutiple and Precedents transaction: At least 10 hours - Profile of the Company: At least 5 hours - Profile of the Sector: At least 5 hours
On a PPM it will be a very similar structure and timing but it will be more time consuming (in general) to find the data and it will require more iterations with the Company's management... and it will delay the ETA...
=> And this timing is VERY optimistic... of course it will depend on your knowledge of the sector, your valuation skills, and the level of expectation of your MD, VP and Associate.
I hope it helped
Thanks for the insight. Thats about what I thought. Are most books done in teams though, 1-2 analysts and an associate? Any difference between BB's vs. MM firms on how this work is divided up?
Relative. Size of deal and bank affects team and whatnot. More likely A2/As checks, then pass up pecking order if a bigger place. Boutiques you might bear brunt of resp early on.
Larger deals command more eyes.
There's no standard for pitchbooks. Sometimes we'll start one the day before since we already have a pitchbook we can more or less nameswap from or it's just a generic creds/market update book, and sometimes it's a company that the MD has been chasing so we make a 100 page book with a full positioning section and turn it every night until 4 in the morning for a week.
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