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Pitchbook

Definition - What does Pitchbook mean?

The pitchbook is a document (typically a PowerPoint presentation) prepared by an investment banker to highlight a company's key attributes. It is usually prepared as part of a sell side engagement to market a company to prospective buyers.

The pitchbook is a detailed, data rich document that describes a company's business, provides historical financial information and projections, details on assets, and offers a summary of a preferred transaction structure and steps. The main purpose of a pitchbook is to elicit interest from prospective buyers and generate an expression of interest.

Divestopedia explains Pitchbook

A pitchbook, in the context of the sale of a private, middle market business, is similar to a Confidential Information Memorandum or "CIM."

Some key areas that a pitchbook should describe in detail include:
  • The company's key customers and how diversified the customer base is;
  • Barriers to entry for competitors;
  • Ability and plan to achieve future projections;
  • Future growth opportunities;
  • Strength of management team;
  • Scalability of operations; and
  • Opportunities in the external market place.
What is key for all sellers is to own the content in the pitchbook. While you are hiring an investment banker to put it together, the data should be generated and vetted by you. After all, the pitchbook is a sales document, so you should ensure your business is presented in the most positive light. However, the information needs to be factual though. If there are any issues the business is facing, the pitchbook provides you an opportunity to explain how these issues are being dealt with.

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Resources

  • Equicapita: Equicapita
    Equicapita's model is to acquire established, private small and medium sized enterprises (“SMEs”) located primarily in Western Canada.
  • Evolution Capital: Evolution Capital
    Leaders in growing small business.