Understanding Investment Banking

What is Company Profile?

• A Company Profile is a one-pager that quickly describes a company: (1) What is their business model? What do they sell? Who are their customers? (2) Short financial profile from revenues to EBITDA and (3) Shareholder structure

What is a Pitchbook?

• A pitchbook is a document that banks will compile with the aim of winning mandates and follows the following structure: (1) Introduction of the bank with tombstones of relevant deals, (2) company profile of target company and (3) valuation chapter with comps, precedent transactions, DCF and LBO

Can you describe an M&A sell-side process? (more advanced)

• Initially, the bank has to win the mandate with a pitch or beauty contest. Then you will be busy putting together the marketing material (Teaser and Information Memorandum). Then you start approaching potential buyers with your Teaser. More interested parties will sign a non-disclosure agreement (NDA) to receive more detailed information in the form of the Information Memorandum. Interested parties will then submit an indicative offers. The parties with promising offers will be granted access to the virtual data room to further conduct due diligence (check the company files) to confirm their indicative offer. Then you start SPA-negotiations which will lead to signing and closing