Public Information Book (PIB)

What is a Public Information Book (PIB)?

A Public Information Book (PIB) is a document that compiles all available public information on a company. PIBs help individual and institutional investors conduct due diligence on a company as they compile public information, which is useful for conducting valuations for different companies.

They offer a detailed historical perspective on a company, aiding analysts and investors in understanding its performance, management practices, industry positioning, and potential opportunities or threats.

Unlike brief company profiles, PIBs provide an in-depth analysis, often spanning several years, making them crucial tools for strategic decision-making, financial analysis, and market evaluation.

The key elements of a PIB are:

• A company's press releases
• Industry information
• SEC Filings
• Equity research reports
• Investor presentations
• Conference call transcripts

PIBs In Investment Banking

PIBs are often used in investment banking to help banks prepare for a buy-side or sell-side transaction or even a pitchbook, as they capture a historical picture of the company's performance. The company's best places to find financial data are:

• Latest annual and quarterly filings
• Press releases
• SEC Filings
• Company website
• Equity research reports
• Conference call reports

PIB contains a compilation of company news, such as:

• Stock splits
• Acquisitions
• Partnerships
• Management changes
• News and data are available to all major financial data providers, such as:
• Bloomberg Terminal
• Capital IQ
• FactSet

What's Included in a PIB?

A PIB includes a company's:

• News releases
• SEC Filings
• Equity research reports
• Corporate presentations
• Financial statements
• Shareholder reports
• News articles
• Other data related to the company or industry

Though an analyst at an investment bank would typically look to include the following items:

1. News releases: News articles that may affect a company's stock price or growth prospect would be something that analysts look into, particularly within a 6-12 month time horizon.
2. SEC filings: These regulatory documents require a company to file Form 10-K and Form 10-Q with the SEC on an ongoing basis. Form 10-K is a financial overview and commentary for the last year, usually found on the company's website. Form 10-Q is similar to Form 10-K, but it is a report for the last quarter instead of the previous year.
3. Equity research reports: Look into key forecasts for metrics like Revenue, EBITDA, and EPS for the company or competing firms to form a consensus estimate. 
4. Investor Presentations: Companies provide historical information as an important foundation from which forecasts are made to guide key forecasting drivers. 
5. Press Release: This can be found in the investor relations section of most companies' websites and contains the financial statements that are used in forms 10-K and 10-Q. 
6. Conference calls: The same day a company issues its quarterly press release, it will also hold a conference call. On the call, analysts often learn details about management guidance. Several service providers transcribe these conference calls and can be accessed by subscribers of large financial data providers.

Where to Find the Information for a PIB

For a comprehensive Public Information Book (PIB), diverse and reliable sources are essential.

Some ways through which you can find the information are:

• Government websites, particularly those of relevant ministries or departments, as they provide official data, policies, and reports
• Academic databases such as Google Scholar and institutional libraries offer access to peer-reviewed articles and research papers on various subjects.
• Reputable news outlets and journalism websites provide current events, analyses, and expert opinions.
• Non-profit groups, think tanks, and academic research bodies frequently release significant publications containing research findings, studies, and data about societal, economic, and ecological matters.
• You can also consider examining materials published by global organizations such as the United Nations, World Bank, and WHO to gain insights from an international standpoint.
• Lastly, interviews with experts, surveys, and case studies can provide firsthand insights.

What is the use of a Public Information Book?

Public Information Books are often used for business valuations as  they summarize all the public information about the company when valuing a business. 

It is also helpful for Investment Banks to understand:

• How the company generates value
• How it is managed
• Whether there are any potential opportunities or threats
• What the industry landscape looks like

PIBs are also used to create a pitchbook by assessing a company's:

• Strategy
• Competitive positioning
• Review of financial statements
• Industry dynamics
• Trends within the industry

They have many uses within finance compared to company profiles, which provide an overview of the company. 

Company profiles are provided to clients during acquisition to give them a high-level overview of the company, while PIBs are for senior bankers to inform them of a company and industry.

Unlike a company profile, a PIB highlights more information about a company. A company profile can be viewed as a brief snapshot of a company, whereas a PIB looks at a longer time horizon and is more detailed. 

In the cases of private companies, it is harder to find public information. However, analysts aggregate the data through estimates from:

• Press releases
• Quotes
• Leaks in the news and direct outreach

Researched and authored by Aimaan Shergill | LinkedIn

Reviewed and edited by Parul Gupta | LinkedIn

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Data Room
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• Sale and Purchase Agreement
• Seller Representation Agreement