Maybe it is a bit jaded of me, however I consider firm profiles the identical approach I consider Wikipedia entries – a hodgepodge of basic-as-Ben-Stiller data that is not notably attention-grabbing, however all the time essential to have on maintain.
The purpose we create firm profiles in funding banking is to be used when analyzing the aggressive panorama of our shopper firm’s trade and for utilizing in shows to the shopper about potential offers (who can they purchase, who can purchase them, who to be careful for).
Company profiles additionally assist us maintain tabs on who’s doing what and the place every participant matches in – very CIAish I do know.
What does a firm profile actually encompass?
It relies on what it is getting used for.
In say a fundamental ‘Market Update’ PowerPoint presentation going out to a shopper, every firm profile (of the shopper’s rivals/suppliers/prospects and so on) might solely be a one slide abstract with a 3 sentence description, 5 numbers/multiples, current information and so on – this tremendous succinct type happens when say 5-15 rivals are being profiled without delay in a fundamental presentation.
In it is longer type, say if you happen to had been detailing each potential acquisition goal in a formal pitch e book (!), a firm profile may embody a number of slides that straddle all the pieces from historic financials to intensive qualitative descriptions of the corporate’s income streams to detailed evaluation of particular elements of the corporate (to go well with the quick utilization necessities).
In this manner the corporate profile will get heavy and strikes past the realm of mere Wikipedia copycat!
Because firm profiles are sometimes merely a assortment of straightforward data scattered superbly throughout a few slides, they’re thought of Intern Level Work and will most likely be one of many first issues your analyst-mentor will palm off to you come summer season. As you possibly can see from the above, you do not want a 3.8 GPA from Stanford to tug these off.
How do you have to go about prepping for firm profiles?
When you get into the financial institution flick learn by a couple previous examples, internalize the language, construction, elements, and metrics used, and fairly quickly you may know the right way to create firm profiles with out even referencing precedent samples.
The very first thing you’ll discover when studying previous examples is how tranquilizer-esque they’re; they will put you to sleep in an immediate.
The knowledge, the language, the info, the abstract – it is all so widespread information and BS sounding. But your job is to not win a freaking Excel or inventive writing competitors so do not attempt to break with conference and pen some Charles Dicken prose or engineer some insanely unique multiples if you’re requested to present it a go.
Instead play it protected and create firm profiles that mix in, not stand out
If you need to impress bankers right here then all it’s good to do is current with excessive succinctness – tremendous industrious language paired with solely the actually essential numbers/graphs and so on will wow bankers because it saves them time and hides the “who cares” particulars.
Some college students suppose they should discover attention-grabbing info and figures in regards to the firm that are not readily accessible by way of a firm search on some half-rate intelligence database to impress right here.
But belief me after I say discovering uber unique data like that is time consuming and actually not anticipated – and if you’ve had 2 hours sleep in 2 days why would you get all sadomasochistic on your self with some freaking main analysis?
That stated, you possibly can’t create all of your firm profiles by merely grabbing textual content from a database search, or (and sure this is quite common) copy-pasting a Wikipedia entry on the corporate or textual content from the corporate’s personal web site!!
Instead it’s good to write from scratch utilizing the tone/kind of language and precise construction you see in the banks current firm profiles, and with the kind of conciseness you see in these; in addition to drawing your figures and numbers instantly from the unique sources and condensing them into their most important and insightful type (identical to with spreading comps – which we speak about under).
ie you must summarize the summarizers, however do it precisely and in a shopper pleasant approach.
As an funding banking intern you may most likely most of the time be requested to easily replace or double-check current firm profiles.
This can actually suck if the intern or first yr banking analyst who made the present profiles did an terrible job on them, as a result of bankers will count on a mere ‘replace’ to take you no time in any respect, and but you may virtually be making profiles from scratch!!
Although you might be all vivid eyed and bushy tailed now, do not be disheartened if you happen to make dozens of firm profiles and they by no means get learn – such is the character of them. ie banks will need profiles readily available for ‘simply in case’ a shopper requests them, or a deal takes warmth.
If you could have an funding banking internship developing or are beginning your analyst program quickly it is best to take a look at essentially the most common tasks junior bankers carry out. In this text we listing the highest 39 and clarify the what/why/how so you will get a flying head begin.