5. Pitch Presentation:
o Preparation of Persuasive Pitch: Investment bankers prepare a convincing pitch that includes highlighting all the key points for the sale of investment opportunity.
o Answering Investors' Questions: They can answer all the questions that are asked by investors and remove all the fears that have been made to surround them.
4. Investor Outreach:
o Identify Potential Investors: Identify, on the basis of an investment mandate, the risk and industry preferences, which potential investors are likely to be interested in the investment.
o Contact Targeted Investors: Investment bankers contact the target investors to schedule meetings and presentations.
3. Pitch Book Preparations:
o Creating a Compelling Story: A Pitch book is a comprehensive document outlining an investment opportunity that generally outlines the business model of a company, its financial performance, market prospects, and valuation.
o Personalized Pitch: A pitch book is customized to attain the interest and investment criteria of the target investor.
2. Due Diligence:
o Financial Study: Investment banks engage in detailed financial study of the target company, related revenue, expenses, profitability, and valuation.
o Legal and Regulatory Review: He or she carries on legal and regulatory due diligence to identify all risks and compliance issues.
1. Origination of Deals:
o Opportunity Identification: Investment banks are always on the lookout for potential deal opportunities by connecting with clients, industry research, and market analysis.
o Building Client Relationships: The success of the corporate client relationship building would be sure to ensure a healthy deal flow and familiarize the bank with their needs.
, VC funds, and corporate venture arms investing in early-stage companies. Sell-side includes the market makers that ensure trading by buying and selling securities on their own behalf.
These specialists have an essential role in the well-functioning of the market, guaranteeing its liquidity. A buy-side player is defined as someone or any firm that buys securities with the intention of later selling them for a profit.
Buy-side players in the financial market are individuals who buy securities with the goal of holding them for future investment. This comprises professional investors such as money managers from hedge funds, institutional firms, mutual funds, and pension funds. Even individual investors can be considered buy-side participants. The private market consists of private equity funds, VC funds, and corporate venture arms investing in early-stage companies. Sell-side includes the market makers that ensure trading by buying and selling securities on their own behalf.
sell-side and buy-side of wall street could not operate without each other and are interdependent. Each relying on the other for smooth operations just like two-sides of the same coin.
Thus, the sell side is more interested in getting a maximum price for its financial instrument and providing information and research regarding those specific assets. On the other hand, the buy side looks to buy at the very highest price possible for those instruments. Since neither can exist in a vacuum, each depends on the other to counter-balance market forces.
On Wall Street, firms engage in business as sell-side companies, with investment banks serving as facilitators between issuers of securities and investors and market makers who provide liquidity by trading in the public markets. Investment bankers and corporate finance advisors help companies raise funds in the private capital markets by issuing debt and stock.
The sell side is that part of the financial sector which creates and markets financial instruments, like stocks, bonds, and foreign exchange, in the public market. It also incorporates private capital instruments, including placements of private debt and equity, in the mix. Sell-side professionals are, therefore, investment banks and brokers who design and service these financial products and sell them to the buy side, usually through institutional and individual investors.
The more investment banks know about the sell-side pitch process, the better equipped they will be in becoming effective deal makers and correspondingly leveraging themselves as trusted advisors to corporate clients. Corporate clients may, in turn, better understand investor expectations and handle the fundraising process. This article is a wonderful resource for anyone in the investment banking profession, as it provides a clear and basic summary of the sell-side pitch process.
In this fast-changing business environment, both investment banks and companies need an understanding of the sell-side pitch process. The pitch, which seeks to encourage investors to potential investment opportunities with a well-thought out strategic presentation, is also extremely important for directing capital flows and generating growth. It discusses the sell-side pitch process: most critical stages to roadblocks and industry changes currently occurring.
The sell-side and buy-side of wall street could not operate without each other and are interdependent. Each relying on the other for smooth operations just like two-sides of the same coin.
Thus, the sell side is more interested in getting a maximum price for its financial instrument and providing information and research regarding those specific assets. On the other hand, the buy side looks to buy at the very highest price possible for those instruments. Since neither can exist in a vacuum, each depends on the other to counter-balance market forces.
On Wall Street, firms engage in business as sell-side companies, with investment banks serving as facilitators between issuers of securities and investors and market makers who provide liquidity by trading in the public markets. Investment bankers and corporate finance advisors help companies raise funds in the private capital markets by issuing debt and stock.
The sell side is that part of the financial sector which creates and markets financial instruments, like stocks, bonds, and foreign exchange, in the public market. It also incorporates private capital instruments, including placements of private debt and equity, in the mix. Sell-side professionals are, therefore, investment banks and brokers who design and service these financial products and sell them to the buy side, usually through institutional and individual investors.
The more investment banks know about the sell-side pitch process, the better equipped they will be in becoming effective deal makers and correspondingly leveraging themselves as trusted advisors to corporate clients. Corporate clients may, in turn, better understand investor expectations and handle the fundraising process. This article is a wonderful resource for anyone in the investment banking profession, as it provides a clear and basic summary of the sell-side pitch process.
In this fast-changing business environment, both investment banks and companies need an understanding of the sell-side pitch process. The pitch, which seeks to encourage investors to potential investment opportunities with a well-thought out strategic presentation, is also extremely important for directing capital flows and generating growth. It discusses the sell-side pitch process: most critical stages to roadblocks and industry changes currently occurring.
Sell-side pitch process is one of the most complex and competitive processes requiring an in-depth understanding of market requirements, target company and investor's need. Where investment banks can successfully negotiate this process and present great investment opportunities to investors, then they have much more hope of succeeding in what has become very competitive landscape within the investment banking industry.
o Growth: The investors are looking for companies that can provide them with good growth opportunities, and investment banks have started focusing more on identifying pitches.
o Private equity partnerships: Today, investment banks are joining hands with private equity houses in their endeavour to offer more comprehensive deal solutions and wider access to various investment opportunities.
Sell-Side Pitch Process Trends of Recent Past
o Digitalization: Investment banks are increasingly adopting technology to make the pitch process much more efficient and effective, with virtual data rooms and online portals for investors.
o Integration: Investment banks have started to include ESG considerations in their pitch materials as ESG factors have become important amongst the investors.
o Investor Sophistication: Investors have become sophisticated; they present very stringent due diligence and require high returns.
o Economic Uncertainty Economic downturn can affect investor's demand for risk and make closing deals harder and tougher.
Challenges in Sell-Side Pitch Process
o Competitive Landscape: The investment banking is highly competitive, and more firms are fighting for the same deals and investors.
o Regulatory Environment: Increasing regulatory oversight has made it tougher to execute deals and raise capital
6. Follow-up after Pitch:
o Continuity in Communication: The investment bankers revisit the investor after the pitch; if any questions or fears still remain.
o Terms Discussion: If the investor likes the deal, then the terms are discussed finally.
5. Pitch Presentation:
o Preparation of Persuasive Pitch: Investment bankers prepare a convincing pitch that includes highlighting all the key points for the sale of investment opportunity.
o Answering Investors' Questions: They can answer all the questions that are asked by investors and remove all the fears that have been made to surround them.