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How Do Ib Get Deal

The document discusses the process of investment banking, including how to get deals, typical pitch books, conducting due diligence, and compiling a virtual data room for investors. It also covers key aspects to address in an indication of interest and letter of intent, such as valuation, earn-outs, financials, management, and non-price factors.

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chanhhuu
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© Attribution Non-Commercial (BY-NC)
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29 views3 pages

How Do Ib Get Deal

The document discusses the process of investment banking, including how to get deals, typical pitch books, conducting due diligence, and compiling a virtual data room for investors. It also covers key aspects to address in an indication of interest and letter of intent, such as valuation, earn-outs, financials, management, and non-price factors.

Uploaded by

chanhhuu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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How do Ib get deal

- Previous deal
- Firm reputation
- ReIerrals
- Relationships
Typical pitch book
- Overview oI the IB
- Industry overview
- Estimated valuation
4 F..
- Process overview
- Prospective buyers/investors
No small deals, just small-Iee deals
You have an engagement letter
- Project name
- Learn everything abt the company
- Get data about the company, industry
- ue diligence with 3 goals
4 hat do you need to write a conIidential inIormation
4 nticipate investor questions and possible answers
4 Begin to compile a virtual data room Ior investors
IB is as much art as science
Key words:
- Premier provider
- Leading
- iversiIied
- ost-eIIective
- Flexible
- Blue-chip
- Recurring
- Superior service
- onservatively estimates
Investment consideration
- hat make company special
- ny other opportunity
- Strategic change?
- ategories
4 Industry Iundamental
Growth strategy
- Organic growth vs. acquisition growth
- Exit plan
- .
Products/services
- Position the company appropriately
4 hat does company do? hat type oI company is it?
- How diversiIies is the product portIolio?
4 II the company loses one product, what happens Iinancially?
ustomers
- hat iI the top 5, top 10 customers disappear?
- ny customer concentration out there
- Geographic concentration
- ustomer loyalty? Renew rate? ny new customer?
4 Switching cost?
4 Sticky relationship?
Suppliers
Industry & competition
- How big is the industry
- Market share
- How Iragmented is the market
- Growth rate
Management & employees
- Owner plan
- How involved in the day to day operation
- hy is it being sold?
- Management team, will they stay? ny diIIiculty/holes there
Financials: income statement
- Revenue
4 Steady? Growth?
4 Expectation
4 Historical data
4 Projected revenue
- Balance sheet
4 Inventory
4 ebt
4 apital expenditures
4 Expense and revenue
Indication oI interest (~3 pages)
- Purchase price
4 'aluation range
4 Earn-out
4 alculation oI assumed EBIT
One-time
N
Maintenance
4 Transaction structure & sources & uses
4 ue diligence requirement
Products
customers
4 ondition & approvals required
4 Timing
0 days: the average
4 Plans Ior management
Letter oI intent (~ 12 pages.)
- Same as IOI but longer
- Key term oI purchase agreement
- Board composition
- Escrow
- Transaction expenses
onsideration
- Take into account non-price Iactors

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