Football field investment banking

I know what it looks like and what’s on the x and y coordinates, but I have no idea how to create the rest of it. A football field graph is a graph showing the valuation of a company based on different methodologies. Graph: Crazy Recruiting Correlation Crazy graph regarding one’s background and the effect it has on Finance recruiting!

How to Create a Pitch Book

If you’re new here, please click here to bankin my FREE page investment banking recruiting guide — plus, get weekly updates so that you can break into investment banking. Thanks for visiting! Bankers win deals primarily because of relationships cultivated over a long time ; a pretty presentation right before a company goes public means little compared with the years of meeting the CEO and CFO before that point. Here are a couple of examples:. The next section consists of credentialswhich include similar transactions ingestment team has completed. Since turnover at banks is high, these lists often include transactions completed by team members when they were at other banks.

Watch: building the football field in Excel

These days, you need to have a better-than-average understanding of Valuation. Forget about just knowing the 3 methodologies — you need to understand how and why they’re used, which ones produce the highest or lowest values and also keep in mind some exceptions to each «rule. What are the 3 major valuation methodologies? Rank the 3 valuation methodologies from highest to lowest expected value. Trick question — there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions.

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If you’re new here, please click here to get my FREE page investment banking recruiting guide — plus, get weekly updates so that you can break into investment banking. Thanks for visiting!

Bankers win deals primarily because of relationships cultivated over a long time ; a pretty presentation right before a company goes public means little compared with the years of meeting the CEO and CFO before that point. Here are a couple of examples:. Football field investment banking next section consists of credentialswhich include similar transactions your team has completed. Since turnover at banks is high, these lists often include transactions completed by team members when they were at other banks.

These pages look simple, but they can be time-consuming to put together because you need to find the most relevant deals and rearrange elements from other presentations. After these first few sections, which are similar in any pitch book, the structure and content start to differ based on what the bank is pitching.

For example, you might suggest that the company pursue a targeted sale process with the best buyers and aim to complete a deal within 12 months. Finally, in longer investment banking pitch books, there is often an Appendix with more detailed models and data, and sometimes even longer lists of potential acquirers. No one reads this section, but bankers enjoy spending time on unnecessary work read: evidence of effort.

Large companies often meet with dozens of bankers per month, so originality can be important as well; many investment banks pitch the same set of acquisition targets repeatedly. But here are a few company profile and associated commentary slides similar to the ones found in buy-side pitch books:. In financing mandates — for equity, debt, and even restructuring deals — there are a few major differences compared with the investment banking pitch books described above:.

Subordinated Notes, and explain which one is best based on. Also, see our coverage of IPO valuation models and debt vs. None of these is a pitch book according to the classic definition, but the slides often look similar, and there may be some common elements, such as the valuation section. Not all pitch books take days or weeks to complete — shorter ones might require only a few hours of work. But they can easily spiral into never-ending projects that require all-nighters and extraordinary effort to finish, resulting in those legendary investment banking hours.

Different banks use different tools and methods, so it might be counterproductive to learn too much in advance. You should also learn the key PowerPoint shortcuts very well, including how to customize PowerPoint to make it more efficient see our tutorial on PowerPoint Shortcuts in Investment Banking below :. Everyone knows that Excel is important in finance, but people tend to underestimate PowerPoint — even though most junior bankers spend more time in PowerPoint than Excel.

There are also practice exercises for creating deal and company profiles and fixing slides with formatting problems. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. Free Exclusive Report: page guide with the action plan you need to break into investment banking — how to tell your story, network, craft a winning resume, and dominate your interviews.

Your email address will not be published. The BIWS PowerPoint Pro course gives you everything you need to complete pitch books and presentations in half the time and move straight to the front of the «top tier bonus» line. Leave a Comment. Print as PDF. Break Into Investment Banking. We respect your privacy. Please refer to our full privacy policy. You must confirm the statement above and enter a valid email address to receive this free content.

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Football Field Valuation Chart with Dynamic Share Price Line [Tutorial Video]

What Is An Investment Banking Pitch Book?

You can copy and paste this table into Excel to use as an example. None of the methods are perfectly right or wrong as they provide suggestive valuation of the company. Close Save changes. You may also want football field investment banking expand the chart to the right, to stretch the valuation ranges. Let us try to see the impact of visual data in finance. After that, the company uses this information to carve its valuation range. I was surrounded by the beaches and the beauty was mesmerizing. In the end all I would say that try to make things simpler instead of complicating. Thanks in advance. This applies to all valuation methods you can trade at a high, low or average multiple of earnings. Return to the Finance Dictionary.