Possibly it really is a bit jaded of me, but I feel of firm profiles the similar way I feel of Wikipedia entries – a hodgepodge of standard-as-Ben-Stiller facts that is not especially fascinating, but often essential to have on hold.
The cause we make firm profiles in investment banking is for use when analyzing the competitive landscape of our client company's business and for utilizing in presentations to the client about probable offers (who can they purchase, who can purchase them, who to watch out for).
Business profiles also assist us retain tabs on who's carrying out what and exactly where every player fits in – quite CIAish I know.
What does a firm profile actually consist of?
It depends on what it really is becoming applied for.
In say a standard 'Market Update' PowerPoint presentation going out to a client, every firm profile (of the client's competitors/suppliers/shoppers and so forth) may well only be a 1 slide summary with a three sentence description, five numbers/multiples, current news and so forth – this super succinct type happens when say five-15 competitors are becoming profiled at as soon as in a standard presentation.
In it really is longer type, say if you had been detailing each prospective acquisition target in a formal pitch book (!), a firm profile could incorporate numerous slides that straddle anything from historical financials to in depth qualitative descriptions of the company's income streams to detailed evaluation of distinct components of the firm (to suit the instant usage specifications).
In this type the firm profile gets heavy and moves beyond the realm of mere Wikipedia copycat!
For the reason that firm profiles are generally merely a collection of basic facts scattered beautifully across a handful of slides, they are viewed as Intern Level Operate and will almost certainly be 1 of the initial issues your analyst-mentor will palm off to you come summer season. As you can see from the above, you never require a three.eight GPA from Stanford to pull these off.
How need to you go about prepping for firm profiles?
When you get into the bank flick study by means of a couple previous examples, internalize the language, structure, elements, and metrics applied, and really quickly you are going to know how to make firm profiles with out even referencing precedent samples.
The initial point you will notice when reading previous examples is how tranquilizer-esque they are they will place you to sleep in an immediate.
The information, the language, the details, the summary – it really is all so popular understanding and BS sounding. But your job is not to win a freaking Excel or inventive writing competitors so never attempt to break with convention and pen some Charles Dicken prose or engineer some insanely original multiples when you are asked to give it a go.
Alternatively play it secure and make firm profiles that blend in, not stand out
If you want to impress bankers right here then all you require to do is present with intense succinctness – super industrious language paired with only the seriously critical numbers/graphs and so forth will wow bankers due to the fact it saves them time and hides the “who cares” specifics.
Some students feel they require to locate fascinating details and figures about the firm that are not readily accessible by way of a firm search on some half-price intelligence database to impress right here.
But trust me when I say getting uber original information like this is time consuming and seriously not anticipated – and when you have had two hours sleep in two days why would you get all sadomasochistic on oneself with some freaking principal study?
That mentioned, you cannot make all your firm profiles by just grabbing text from a database search, or (and yes this is quite popular) copy-pasting a Wikipedia entry on the firm or text from the company's personal site!!
Alternatively you require to create from scratch utilizing the tone/sort of language and precise structure you see in the banks current firm profiles, and with the sort of conciseness you see in these as nicely as drawing your figures and numbers straight from the original sources and condensing them into their most crucial and insightful type (just like with spreading comps – which we speak about under).
ie you have to summarize the summarizers, but do it accurately and in a client friendly way.
As an investment banking intern you are going to almost certainly extra generally than not be asked to just update or double-verify current firm profiles.
This can seriously suck if the intern or initial year banking analyst who created the current profiles did an awful job on them, simply because bankers will count on a mere 'update' to take you no time at all, and however you are going to virtually be creating profiles from scratch!!
Though you are all vibrant eyed and bushy tailed now, never be disheartened if you make dozens of firm profiles and they by no means get study – such is the nature of them. ie banks will want profiles on hand for 'just in case' a client requests them, or a deal requires heat.
If you have an investment banking internship coming up or are beginning your analyst plan quickly you need to verify out the most common tasks junior bankers execute. In this report we list the best 39 and clarify the what/why/how so you can get a flying head commence.