Pitch Book — Everything you need to know


Many of us have probably heard the word “pitchbook” at least once when discussing investment banks, looking over an investment bank’s services, or on other similar occasions. While we may have a notion of what a pitchbook is, this piece aims to provide a comprehensive grasp of it.

What is a Pitchbook?

A pitch book for investment banking is a PowerPoint presentation/document aimed to win new business. The “pitch” is often an analysis of why the particular bank is best equipped to lead the transaction and why the client should engage them. There are numerous types of pitches, and they can vary significantly according to the relationship with the client and the type of traction. Pitchbooks assist salespeople in remembering crucial benefits and providing visual aids while presenting to clients.

Pitchbooks are classified into two sorts. There is the primary pitchbook, which provides all of the firm’s main qualities, and one that contains specifics about a specific business, such as an IPO or investment product.

The main pitchbook gives a general summary of the company. It would provide information such as the number of analysts, historical IPO success, and the number of deals completed per year for an investment bank. For an investment firm, it might include information such as the company’s financial strength and the numerous resources and services offered to its clients.

If indeed the pitchbook is being utilised by a team or individual financial adviser, biographical information may be included. All of the facts in the pitchbook are areas that the sales team should emphasise while pitching the firm’s capabilities to potential clients.

Uses of Pitch Books

  1. They are marketing tools

They serve as a marketing tool for all investment banks across the world. It is essential for investment banks to use when marketing to clients. It is an example of useful and thorough marketing content. When an investment bank is looking for new business, it serves as the starting point for the initial presentation or sales introduction.

2. Can help secure clients

It must conduct a thorough and accurate study of the bank’s present and prospective clients’ investing activities.
It should be created and written in such a way that it secures a contract with present or new clients. While making sales, investment banks have a more organised and official approach. They frequently employ a customised and extremely effective sales technique. It allows the bank to demonstrate and explain to clients why they should pick them over a wide range of financing and other sources of money.

3. Contributors

Several contributors to the Investment bank assist in the pitch book development process. Analysts, associates, vice presidents, senior vice presidents, team leaders, and the managing director are all involved.
The Managing Directors are the ones who will provide the original pitch concept. The goal here is to provide clients with financial solutions by delivering bank products and services. Because of the various suggestions for an Investment Banking Pitch book that come from the Managing Directors, the lower level of investment banks is overburdened with work. This implies that the analysts must ensure that the most recent business and industry information is included, with no analytical or typographical mistakes.

Components of a Pitch Book

  1. Bank Introduction

This part is used by the bank to introduce themselves and explain why they are the finest in the business. 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 how it compares to its competitors in the sector. The bank introduction also includes a biography of the transaction’s team members, explaining their experiences, education, and credentials, as well as why they are the right individuals for the task.

2. Market Update

The market update section displays the current situation of the financial markets. The client will be interested in this area to learn about the bank’s outlook on the financial markets. To be relevant and competitive, the bank must exhibit a wise market perspective and present compelling reasons why now is the greatest moment to invest. Charts and graphs may be used to describe current trends and market position in the client’s sector.

3. Transaction Strategy

The transaction section describes the bank’s approach for meeting the customer’s needs, based on whether the client wants to issue an IPO, sell a firm, or locate a strategic partner. In an M&A transaction, the bank gives information on possible purchasers, the amount of cash the bank may obtain, the fee to be paid, and the timeline of the transaction.

4. Valuation methods

The bank demonstrates the appraisal methodologies it employed to arrive at specific findings. For example, the banks may utilise comparative analysis to compare the client’s operations to those of other companies in the same industry. The values are derived from sales, revenues, and valuation multiples such as PE and trading multiples. Financial modeling and DCF analysis are two more valuation approaches that may be applied.