Valuation Analysis Template The valuation component is generally the most important piece of information for a company that is seeking to pursue an M&A transaction. Both parties in a potential deal perform a thorough valuation analysis to maximize their gains from the transaction. On the acquirer’s side, investment bankers will seek to sell their recommendations by…
Precedent Transactions Analysis Section Precedent Transactions Analysis is based on the premise that a company’s valuation can be assessed using the prices paid by acquirers of companies that are similar to the client company. The method is similar to the comparable company’s valuation method in that both are relative valuation methods whereby the target valuation…
Corporate Finance Activity When performing an industry analysis for pitching a strategic recommendation, it is important to perform an analysis of the precedent corporate finance activity of major industry competitors to determine the type of transaction that may be most appropriate for the company you are pitching to. Investment bankers will frequently display this information…
Historical Annotated Share Price Performance Chart By analyzing a company’s historical share price performance, we can visualize the catalysts that have moved its valuation over time, and recommend transactions that will be perceived positively by the market. This article will cover some key valuation drivers and provide different methods of visualizing share prices in a…
Key Industry Trends and Statistics In order for a recommendation to make sense, it must be framed in the context of key industry trends that affect the company you are pitching to. At the highest level, any company in any industry will want to pursue a transaction in order to make the company more competitive….
Liquidity Analysis An analysis of a company’s liquidity is important because it gives us insight into its capacity to pursue an M&A transaction. We need to identify trends in a company’s liquidity position, what their needs are over time, and the implications to the company’s liquidity if a transaction is to be pursued. When performing…
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…
