What Is a Pitchbook?
A pitchbook is a sales document created by an investment bank or firm that details the main attributes of the firm. It is utilized by the firm’s sales force to help sell products and services and generate new clients. Pitchbooks serve as helpful guides for the sales team, highlighting important benefits and providing visual aids during client presentations.
Key Takeaways
- A pitchbook acts as a field guide for the sales team, clarifying key points and reminding them of the firm’s benefits.
- It often includes visual aids to assist in client presentations.
- The main pitchbook offers a comprehensive overview of the firm.
- Product-specific pitchbooks detail a particular product or deal.
How a Pitchbook Works
There are two primary types of pitchbooks:
- Main Pitchbook: Contains the essential attributes and overview of the firm. For instance, it could include the number of company analysts, past successes with IPOs, and the firm’s deal volume per year.
- Deal-Specific Pitchbook: This version includes details about a particular deal, such as a company’s IPO or investment product.
When used by an individual financial adviser, the pitchbook might also contain biographical information. All elements within the pitchbook are critical points the sales team should emphasize to potential clients.
Types of Pitchbooks
For Investment Banks
For investment banks, the pitchbook focuses on showcasing the advantages of the offering, enabling brokers and investment bankers to illustrate how the firm can satisfy the specific needs of prospective clients. It might include more granular details about the potential IPO process, as well as comparable IPOs within the same industry that have been successful.
For Investment Firms
For investment firms, the pitchbook is more product-oriented. It highlights the performance track record of an investment portfolio using charts and comparisons to relevant benchmarks. If the investment strategy is complex, the pitchbook would outline the stock selection method and other pertinent data to help potential clients understand the strategy.
Example of a Pitchbook
In 2011, the company Autonomy became an acquisition target for larger competitors, including Hewlett Packard (HP) and Oracle. Ultimately, HP emerged victorious in acquiring the software infrastructure company. Oracle posted an IPO pitchbook created by Qatalyst Partners on its website.
This pitchbook showcased how Oracle would benefit from acquiring Autonomy, detailing the competitive edge it would provide in sectors where Oracle lacked presence. It featured key financial metrics, indicating positive revenue and margin growth. In addition, the pitchbook highlighted the partners and customers Oracle would gain, as well as information about Autonomy’s management team and directors.
Related Terms: investment bank, IPO, investment portfolio.
