A Public Information Book (PIB) is a document that compiles available public information on a specific company. Generally, it contains information from the company’s latest annual report, equity research reports, industry information, news articles, and recent quarterly earnings webcasts or conference calls. A PIB is very helpful when performing due diligence on a company, which in turn is indispensable for Business Valuation. It is a powerful resource that will usually be the starting point and provide important supporting documentation for your analysis of a company. PIBs are usually prepared by analysts in investment banking in preparation for a deal/transaction or for a pitchbook.
What’s Included in a PIB?
The following items are usually included in a PIB:
Usually, having access to databases such as Bloomberg, Capital IQ, and Hoovers is a great advantage when preparing the PIB. These are expensive services, but most banks, credit agencies, and buy-side institutions have access to at least one, if not all, of these systems. In addition to these paid resources, there is a lot of free information online that can be accessed through the following websites:
Public Information Book and DCF Business Valuation
Investments Bankers tend to put Public Information Books together for business valuation; they generally have their Junior Analysts doing most of the data collection grunt work. The PIB is a key component of “Step 1: Information Gathering” of the Four-Step Approach to DCF Business Valuation. It is the summary of all the relevant public information that one should be aware of when valuing a business. The Public Information Book is a valuable resource to understand how the company generates value, how it is managed, and the industry landscape that it is operating in.
The information in the PIB can be used for the next step of DCF analysis, Comparable Company Analysis, and for creating a pitchbook.