Competitive Environment When framing an M&A transaction discussion, it would be remiss to not bring up the main competitors in the industry and assess the existing competitive environment, specifically the steps they are taking to remain viable themselves. There are many reasons to benchmark a company against its competitors, whether it is to display comparable…
Business Model, Operating Forecast, Shareholder Ownership Business Model Every company’s business model is unique, and their execution of key activities is how a company derives its competitive advantage. It is imperative that an investment banker gains a strong understanding of the business, how it generates a competitive advantage, and most importantly, how to frame all…
Company Overview When constructing a pitchbook for M&A transactions, the most important thing is to present a company overview and portray the company in the most attractive light as possible to the management team. Regarding the order of slides, the directors or VP will provide guidance on the optimal slide order. The order will depend…
Investment Banking Pitchbook Template The CFI Investment Banking Pitchbook template is free and available for anyone to download. If you’re looking for an example or a guide on how to make your pitchbook, this will be a great starting point. The presentation is based on a hypothetical pitch to a board of directors on several…
What is the Enterprise Value to Revenue Multiple? The Enterprise Value to Revenue Multiple is a valuation metric used to value a business by dividing its enterprise value (equity plus debt minus cash) by its annual revenue. The EV to revenue multiple is commonly used for early-stage or high-growth businesses that don’t have positive earnings…
What is a Cash Budget Template? A cash budget template is a budget based on actual inflows and outflows of cash, as opposed to being based on accounting principles such as revenue recognition, matching, and accruals, which may result in very different numbers. A cash budget is important for personal and business planning, as it…
What is Adjusted EBITDA? Adjusted EBITDA is a financial metric that includes the removal of various one-time, irregular, and non-recurring items from EBITDA (Earnings Before Interest Taxes, Depreciation, and Amortization). The purpose of adjusting EBITDA is to get a normalized number that is not distorted by irregular gains, losses, or other items. It is frequently…
What is CFD Trading? CFD (Contracts for Difference) trading is increasingly popular with experienced investors, but anyone can try it. Most online trading platforms offer contracts for difference trading to their customers. It is a potentially high-risk trading strategy, but as long as you understand how CFD trading works, you can minimize your risk exposure….
What is Sweat Equity? Sweat equity is a non-monetary contribution that the individuals or founders of a company make towards the company. Cash-strapped startups and business owners typically use sweat equity to fund their companies. For example, the founder of a tech startup company may value the efforts placed towards developing the company at $200,000….
What are Option Pricing Models? Option Pricing Models are mathematical models that use certain variables to calculate the theoretical value of an option. The theoretical value of an option is an estimate of what an option should be worth using all known inputs. In other words, option pricing models provide us a fair value of…
