Pitch book

A pitch book summarizes information related to an offer to provide or solicit financing. More specifically, it can be used in either of the following ways:

  • Securities offering. A pitch book is a written presentation, containing the details of a financing deal. Examples of the general topic of a pitch book are an initial public offering of stock, or a secondary offering. The intent of a pitch book is to show the benefits to a potential investor of investing funds in a proposed securities issuance. The typical contents of this type of pitch book are:
    • Executive summary
    • Industry overview
    • Company products and services
    • Company positioning within its market
    • Types of customers
    • Opportunities for growth
    • Historical and projected growth
  • Investment bank marketing. A pitch book describes the securities offerings that an investment bank has successfully completed in the past. It is designed to sell the services of the firm to a prospective client that wants to raise funds or put itself up for sale. The pitch book is a critical tool in the investment banking arena, where bankers need to differentiate themselves from their competitors. Given the heightened level of competition to secure clients and the massive fees that can potentially be garnered from a single client, it is worth the effort to heavily customize a pitch book for each recipient. These modifications usually include a discussion of the valuation that the investment banker places on the prospective client (assuming that the client wants to put itself up for sale), an analysis of the client's industry, a listing of potential buyers, and the resumes of the bankers who will be assigned to the client.

Any pitch book is a marketing tool. Those being used to present a deal to an actual investor should be supported with rigorous analysis, if only because the investor will probably want to see the analysis. On the other hand, a pitch book issued by an investment bank is not usually supported with much detail, since it is only designed to get the attention of a prospective client.

Related Courses

Corporate Cash Management 
Corporate Finance 
Treasurer's Guidebook