Industry Awareness

Question 1

what is in a pitchbook?

Answer 1

• advisor’s case “credentials” (case history)
• summary of the companie’s strategic alternatives
• valuation
• potential targets/acquirers
• summary and key recommendations

Question 2

sell side m&a

Answer 2

• meet with the company to create initial marketing materials (excecutive summary, offering memorandum) and decide on potential buyers
• send executive summary to buyers
• send NDA to interested buyers along with more info and respond to any follow up due diligence
• set a “bid deadline” and solicit written indication of interest (IOI)
• select which buyers advance
• continue with due duligence
• set another deadline to pick the winner
• negotiate terms and announce the deal

Question 3

buy side M&A

Answer 3

• research on many targets and filter with the company you are advising
• decide which targets to approach
• meetings with potential sellers
• more detailed DD and figure out potential price
• negotiate terms and announce transaction

Question 4

1-slide company profile, what would you put there?

Answer 4

name of the company

top left: business description, headquarters, key executives

top right: key historical and projected financial metrics and multiples

bottom left: description of products and services

bottom right: key geographies

Question 5

how to tackle investing/strategy questions?

Answer 5

aske 2 questions before answering:

1. what are the investor/business goals?
2. are there any constraints, limitations, time horizons?

Question 6

how to tackle: “tell me about a recent deal” question

Answer 6

• buyer and seller
• price and multiples
• read an article on it and discuss the dynamics of the deal: how it developed and implications for the industry

Question 7

how are the three financial statements linked?

Answer 7

net income from the income statement flows into shareholder’s equity on the balance sheet, and into the top line of the cash flow statement