The investment banking sector is a section of the banking and financial services business that assists organizations in raising funds and also provides advice and consultations on a variety of financial instruments available by assessing individuals’ and firms’ needs and risk appetite. These days taking up an investment banking operations course will assure you a very good job in the banking industry.
What is a pitchbook and how to make a powerful pitchbook?
A pitchbook is a sales book used by investment banks to market products and services to potential clients. The goal of a pitchbook is to close a deal with potential clients. It gives a general picture of the company, including historical information, financial strength, and services available to potential clientele.
Points to remember while making a pitchbook:
This part is used by the bank to explain who they are and why they are the greatest in the industry. It gives a summary of the transactions it has successfully managed as well as some of the industry accolades it has received in the past. It also offers information on its position in the sector.
Updates on the market:
The market update section displays the current situation of the financial markets. This section will pique the client’s attention because it contains the bank’s thoughts on the direction of the financial markets.
The strategy of transaction:
This part describes the strategy that the bank will employ to suit the client’s needs, depending on whether the client wants to issue an IPO, sell a business, or locate a strategic partner.
Methods of Valuation:
The bank demonstrates the appraisal methodologies it employed to arrive at specific findings. For example, the bank may utilize comparative analysis to compare the client’s business to other enterprises in the same industry.
The appendix section provides backup information for the information presented in the pitchbook’s body. It is added as the pitchbook’s final section and contains information on the assumptions used in computing future projections, financial reports, and so on.
How to structure better deals?
To establish a fantastic deal structure, aim for a win-win scenario in which both sides’ interests are effectively protected, the deal and risks are kept to a bare minimum. Win-win deal structures are more likely to result in a completed merger or acquisition transaction and may even shorten the time required to complete the M&A process.
Three ways of structuring deals:
- In an asset acquisition, the buyer purchases the selling company’s assets. If the selling business chooses a cash transaction, an asset acquisition is usually the optimal deal structure. The buyer selects which assets to buy.
- In contrast to an asset acquisition, where assets are directly transacted, assets are not directly transacted in a stock buy. The buyer acquires a majority of the seller’s voting stock shares in a stock purchase acquisition. In essence, it means that the buyer gains control of the seller’s assets and liabilities.
- A merger is the outcome of an agreement involving two different commercial companies to unite as one new organization. A merger is usually less complicated than an acquisition because all liabilities, assets, and so on are transferred to the new business.
How to climb the league table?
A league table ranks market leaders based on various indicators within a specific industry. League tables are frequently used to rate organizations that provide underwriting, financial and legal advice, and mergers and acquisitions services.
There are several ways to make your way up the league table in investment banking. By far the most obvious yet effective way is to crack higher valuation deals in the M&A segment to achieve a higher net-worth and term value.
As evident from the above discussion, investment banking and its operations are extremely crucial parts of the banking industry, hence taking up an investment banking operations course will easily fetch you highly paid jobs. If you are considering a career in banking, such a course will definitely add to your knowledge and experience.