How to Create an Investment Banking Pitch Book

As the competition in the investment banking space intensifies, service providers are finding ways to market themselves more successfully. One tool central to these marketing efforts is investment banking pitch books, also known as pitch decks. These tools are designed to present a specific investment bank as the most compelling choice for existing and potential clients.

In this article, we’ll discuss investment banking pitch books and how to create them. We’ll also explain how investment banks can pitch better using Macabacus’ Prepare to Share tool.


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What Is an Investment Banking Pitch Book?

An investment banking pitch book or pitch deck is a sales presentation used by investment banks to attract and engage current and potential clients. This specialized report, which is typically created using PowerPoint, aims to demonstrate why a particular investment bank is best suited to provide advisory services for a potential client.

Investment banking pitch books cover everything from the background and key executives of a bank to its experience and past achievements.

Types of Pitch Books

There are many types of pitch books based on what investment bankers are pitching:

  • General pitch book: This provides potential investors or clients with key insights into an investment firm. It highlights the firm’s track record, advisory expertise, and proven ability to drive returns.
  • Sell-side pitch books: These involve advising and representing a company looking to sell or divest part or all of its business. The investment banking team on the sell-side works to maximize the value of the assets being sold and facilitate a successful transaction for their client.
  • Buy-side M&A pitch books: Here, investment bankers assist clients looking to acquire other companies or assets. The focus is on identifying suitable acquisition targets, conducting due diligence, and negotiating favorable terms for the buyer.
  • Financing mandate: This involves helping clients raise capital through various financial instruments, such as equity or debt. Investment bankers on financing mandates assist in structuring and executing transactions to secure the necessary funds for their clients, whether it’s for expansions, acquisitions, or other financial needs.

Key Components of a Pitch Book

A pitch book can have the following outline:

  • Cover page: This displays your logo, company name, document titles, and dates.
  • Table of contents: This lists the various sections of your pitch book.
  • Bank introduction and executive summary: This section provides a general overview of your investment firm, its team, corporate history, and track record. It summarizes key points and the purpose of the pitch.
  • Market overview: This part analyzes the market, industry trends, and potential opportunities.
  • Valuation summary: This involves presenting various valuation methods (DCF analysis, comparable company analysis) to support your target price.
  • Transaction strategy: This discusses the investment bank’s services and transaction process along with the proposed deal structure and strategic alternatives.
  • Rationale of the bank’s strategy and financial solution: This explains the strategic reasons behind the proposed transaction. It also discusses the key risks to mitigate for potential clients.
  • Summary: This highlights why the investment bank is the most suitable choice for the prospective client—all things considered.
  • Appendix: This features any supplementary materials such as additional financial models, charts, or market research.

How to Create a Pitch Book

Investment pitch books must be created in a way that establishes credibility in the eyes of potential clients, investors, and partners. Below are the main steps involved in creating effective pitch books.

Understand the Needs of Your Target Client

Different clients have distinct interests and concerns. Identifying your target client’s needs helps you tailor your pitch to them, which increases your chance of being hired.

Write a Compelling Introduction

The introduction sets the tone for the entire pitch and is an opportunity to make a memorable first impression. So, try to write an introduction that captures attention, sparks interest, and establishes a connection with your audience.

Discuss Your Target Client’s Situation or Challenges and Your Proposed Solutions

Your target client may be looking to acquire a competitor, get acquired, raise capital, or pursue a similar agenda. You must demonstrate your understanding of the client’s situation and suggest a compelling plan of action. This positions your bank as a valuable proposition and helps build a narrative that resonates with the client.

Highlight Tour Team’s Expertise

Showcase key team members, their expertise, and their roles in the company. You can include the resumes of key company executives, other senior members, and the sales team. A strong, experienced team boosts confidence and highlights your ability to execute the business plan effectively.

Talk About Your Business Model and Economic Outlook

This step sheds light on how your investment bank operates, as well as its revenue streams, cost structures, and value propositions. This step also provides context for the scale and potential of your bank by reviewing your market position, growth story, and the specific gap your service addresses. The aim here is to show how you plan to scale operations and capture an increasing market share over time.

Perform Financial Forecasts

Financial forecasting provides a quantitative outlook on the potential success of your bank. This step involves presenting revenue projections, expense forecasts, and key performance indicators (KPIs). It shows the financial strength and sustainability of your bank, which is crucial for attracting potential clients, investors, and partners.

Conclude with a Clear Call to Action

Adding a clear call to action guides your audience on the next steps. Whether it’s an investment opportunity, a collaboration proposal, or a call for early adoption, a well-defined call to action ensures that your potential client knows how to engage and move forward.

Tips for Success

Creating a pitch book that works requires strategic storytelling. The following tips can increase your chances of success:

  • Collaboration and team dynamics: Coordinate with analysts, researchers, and other team members while drafting pitch books. Collaboration provides unique insights and promotes a smoother workflow.
  • Specifics and clarity: Tailor the pitch book to the specific needs and preferences of your audience. Keep the content clear, concise, and focused on key selling points. Avoid unnecessary jargon and ensure a logical flow of information.
  • Visual appeal: Incorporate visually appealing elements such as charts, graphs, and infographics to enhance engagement.
  • Regular updates: Stay up-to-date with market changes and update your pitch book accordingly. A current and relevant marketing presentation boosts confidence in your audience.

Investment Banking Pitch Book Templates

These investment banking pitch book samples can serve as a guide:

How Macabacus Can Help

Macabacus can support your investment pitching efforts in a few different ways:

  • Financial modeling: Macabacus offers a high-quality operating model that boosts the accuracy of your financial projections. Our tool helps junior and senior bankers alike generate financial models that showcase their firm’s financial performance and outlook.
  • Sharing the pitch book: It always helps to send a digital copy of your pitch book to your audience after the initial presentation. Macabacus’ Prepare to Share tool makes sharing easier by enabling you to quickly clean up various aspects of your presentation at once.

Key Takeaways

Investment banking pitch books are a powerful tool for attracting new business. These financial reports aim to show why the authoring bank is best suited to provide investment advisory services for prospective clients. Many things go into writing an effective pitch book, including understanding the client’s needs, showcasing solid expertise, and featuring a compelling call-to-action.

After presenting your pitch book, consider using Macabacus’ Prepare to Share tool to send a soft copy of the deck. Our solution makes sharing easier by making voluminous slides easily workable. Get in touch today.

Create Financial Models 10x Faster with Macabacus

Gain access to 100+ shortcuts, formula auditing visualizations, easy Excel-to-PowerPoint linking and productivity tools to help you accelerate financial modeling and presentations.

Start your Free Trial

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