ipo pitchbook

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Pitchbook

© Pristine For [Insert Text Here] (Confidential)

Key concept page

I. Pitchbook

II. Parts of a pitchbook

III. Key sources of information

IV. Best practices

1


1. Introduction to Pitchbooks

Pitchbook is a marketing tool used by investment bankers

Contains detailed analysis of investment ideas for clients

The content varies with the purpose of meeting with the clients

2

Types of Pitch

Industry overview/Bank

Introduction

Deal consideration

Management Presentation

Bank introduction Initial sales pitch Regular meeting

Buy- side M&A Sell-side M&A IPOs Debt issuance

After mandate pitches

There can be many other sub-types of these


2 Key parts of a Pitchbook

Bank credentials

Market overview

Positioning/Equity story

Company profiles

Valuation summary

Potential targets/buyers

Summary/recommendation

Appendix

3


2.1 Bank Credentials

Bank credentials

• Bank Organization

• League Tables

• “Tombstone” deal summary

• Deal team credentials

Market overview


Company profiles

Valuation summary



Apendix

4


5

UBS—A Leading Global Financial Services Firm

―Wall Street Powerhouse‖

FORBES 2004

The UBS Way

BLOOMBERG 2004

World’s Best Investment

Bank

EUROMONEY 2004

World’s Best Bank

EUROMONEY 2003

Best Investment Bank

THE ECONOMIST 2003

World’s Best Investment

Bank

INVESTMENT DEALERS’

DIGEST 2002

“ UBS is a banking giant but, a Wall Street powerhouse? Oh Yes.

This is a house… that’s grown out of its regional shell to assume

premier proportions in world finance. But it’s the push into the

rarified realm of Investment Banking that sets UBS apart.

” “BIG KID ON THE BLOCK”

FORBES

“ UBS has achieved what once seemed impossible for any European

investment bank: it has broken into the front rank in the US market,

source of roughly half the global investment banking fee pool. In the

12 months ending in April 2004, it doubled its share in announced

US M&A deals. ” WORLD’S BEST INVESTMENT BANK

EUROMONEY 2004

Our strength is backed by industry accolades

[FOR REFERENCE ONLY]


6

UBS—A Leading M&A Advisor with Rapid Improvement in Market Share

2003–2004

# of Transactions / Market Share 1

2003–2004 Market Share

versus 2000—2002

Notes: Data represents all M&A deals worldwide greater than $100 million in transaction value. Full credit given to acquiror and target advisor(s). Excludes withdrawn deals, equity

carveouts, exchange offers, and open market repurchases

1 Market share based on number of transactions. Market shares do not sum to 100% due to multiple advisors on each transaction (e.g., target advisor and acquiror advisor)

UBS has positioned itself as one of the leading M&A advisors worldwide and has unprecedented momentum,

capturing more market share than any other bank since 2002

6.4%

8.1%

8.5%

8.6%

10.4%

10.8%

12.2%

13.0%

13.8%

14.8%

Lazard

Lehman Bros

Merrill Lynch

Deutsche Bank

CSFB

Morgan Stanley

Citigroup

JP Morgan

Goldman Sachs 459

426

403

377

333

322

265

262

252

197 (38%)

(23%)

(11%)

(5%)

(2%)

(1%)

+3%

+6%

+9%

+23%

CSFB

Merrill Lynch

Morgan Stanley

JP Morgan

Citigroup

Goldman Sachs

Lazard

Deutsche Bank

Lehman Bros



7

February 2005

US$415 million Sale to eBay

February 2005

US$850 million Sale of Selected DynCorp Units to Veritas Capital

November 2004

US$137million Sale to Cisco Systems

July 2004 US$170 million Sale to FindWhat.com

May 2004 US$663 million Acquisition of NPTest

May 2004

US$380 million Sale to Serena Software

March 2004 US$463 million Sale to SafeNet

January 2004 US$601 million Sale to Manpower

January 2004 US$467 million Financial Restructuring

November 2003 US$295 million Sale to NetScreen

Overview of UBS Technology M&A Group

Strong technology-focused M&A presence with

deep industry knowledge and company

relationships

Experienced in a wide range of advisory

assignments

– Buyer advisory

– Seller advisory

– Cross-border transactions

– Merger of equals

– Shareholder value protection

– Leveraged transactions

Technology M&A Expertise 2004 Technology M&A Transactions Less Than $1 Billion

Source: SDC

Financial Advisor Rank Value ($mm) No. of Deals

Goldman Sachs & Co 1 7,168.2 17

Morgan Stanley 2 6,025.4 22

Credit Suisse First Boston 3 5,187.3 15

UBS 4 4,476.8 11

JP Morgan 5 4,375.4 14

Banc of America Securities LLC 6 2,148.2 5

Citigroup 7 2,114.1 12

Jefferies & Co 8 2,093.0 21

Lehman Brothers 9 1,560.4 9

Rothschild 10 1,492.6 3

Selected Recent Transactions

League Table



8

February 2005

US$415 million Sale to eBay

February 2005

US$850 million Sale of Selected DynCorp Units to Veritas Capital

November 2004

US$137million Sale to Cisco Systems

July 2004 US$170 million Sale to FindWhat.com

May 2004 US$663 million Acquisition of NPTest

May 2004

US$380 million Sale to Serena Software

March 2004 US$463 million Sale to SafeNet

January 2004 US$601 million Sale to Manpower

January 2004 US$467 million Financial Restructuring

November 2003 US$295 million Sale to NetScreen

Overview of UBS Technology M&A Group

Strong technology-focused M&A presence with

deep industry knowledge and company

relationships

Experienced in a wide range of advisory

assignments

– Buyer advisory

– Seller advisory

– Cross-border transactions

– Merger of equals

– Shareholder value protection

– Leveraged transactions

Technology M&A Expertise 2004 Technology M&A Transactions Less Than $1 Billion

Source: SDC

Financial Advisor Rank Value ($mm) No. of Deals

Goldman Sachs & Co 1 7,168.2 17

Morgan Stanley 2 6,025.4 22

Credit Suisse First Boston 3 5,187.3 15

UBS 4 4,476.8 11

JP Morgan 5 4,375.4 14

Banc of America Securities LLC 6 2,148.2 5

Citigroup 7 2,114.1 12

Jefferies & Co 8 2,093.0 21

Lehman Brothers 9 1,560.4 9

Rothschild 10 1,492.6 3

Selected Recent Transactions

“Tombstone” of recent deals



2.2 Market/Industry Overview

Bank credentials

Market overview

• Industry overview

• Market growth

• Recent trends

• Key opportunities


Company profiles

Valuation summary



Appendix

9


2.2 Market/Industry Overview

Gives an overview of the industry/sector

Backed by numbers and charts

• Total addressable market size

• Market growth rate

• Growth drivers

Key trends in the industry

Major players in the industry

• Value chain of industry

10


n

14



2.3 Positioning

Bank credentials

Market overview


• Why is the company attractive?

• Company’s strength/weakness

• Market share

Company profiles

Valuation summary



Appendix

15


2.4 Company profiles

Bank credentials

Market overview


Company profiles

• What does the company do?

• Public market overview

• Business segments

• Geographical presence

• Key competitors/customers

• Recent News

Valuation summary



Appendix

16


2.4 Company profiles

17

Profiles

Strip Profile One-pager/Two

Pager Detailed

Company name/logo Summary financials Short business

description Management

Detailed business description

Recent news Key management Geographical

presence Public market

overview Share price

performance Key customers Key competitors

Detailed business description

Product overview Management

overview Geographical

presence Public market

overview Share price

performance Historical financial

performance


LinkedIn - overview

18

Business description

Social networking website for people in professional occupations

Operates a proprietary platform that allows members to create, manage, and share their professional identity online

Also offers members with solutions to search, connect, and communicate with business contacts

Provides hiring solutions comprising LinkedIn Corporate Solutions, LinkedIn Jobs and Subscriptions

Used by 200mm members in 200 countries Available in nineteen languages

Offices in 25 cities worldwide Founded in 2003 and headquartered in Mountain View, CA

Recent news

Jan 09, 2013: Announced that it has reached 200mm members Dec 4, 2012: Announced the launched of SUCEED: Small

Business Group, an online forum for networking, advice and content for small business professionals in partnership with Staples

Share Price Performance

Public market overview

Key management

Name Designation Past Experience

Jeffrey Weiner CEO and Director

Steven Sordello CFO

David Henke SVP Operations

$80

$95

$110

$125

$140

7/23/2012 9/21/2012 11/20/2012 1/19/2013

LNKD

As of 23/1/2013

Share Price $119.02

Shares outstanding 87.2mm

Market cap 12.8bn

P/E Ratio 596.45x

Forward P/E(1y) 795.27

Earnings Per Share (EPS) $0.20



LinkedIn - overview

19








Recent news





Key management



Steven Sordello CFO


$80

$95

$110

$125

$140

7/23/2012 9/21/2012 11/20/2012 1/19/2013

LNKD

As of 23/1/2013

Share Price $119.02


Market cap 12.8bn

P/E Ratio 596.45x



What does the company do? What are its business segments? What products/solutions does it provide? Where all does it operate? What are its main sales channels? How many employees are there? Any proprietary technologies? When was it founded? Where are its headquarters?



LinkedIn - overview

20








Recent news





Key management



Steven Sordello CFO


$80

$95

$110

$125

$140

7/23/2012 9/21/2012 11/20/2012 1/19/2013

LNKD

As of 23/1/2013

Share Price $119.02


Market cap 12.8bn

P/E Ratio 596.45x



Key recent news and events • Management changes • New product launches • M&A activity



LinkedIn - overview

21








Recent news





Key management

Name Designation


Steven Sordello CFO


$80

$95

$110

$125

$140

7/23/2012 9/21/2012 11/20/2012 1/19/2013

LNKD

As of 23/1/2013

Share Price $119.02


Market cap 12.8bn

P/E Ratio 596.45x



Key personnel • CEO, CFO, CTO, Chairman



LinkedIn - overview

22








Recent news





Key management

Name Designation


Steven Sordello CFO


$80

$95

$110

$125

$140

7/23/2012 9/21/2012 11/20/2012 1/19/2013

LNKD

As of 23/1/2013

Share Price $119.02


Market cap 12.8bn

P/E Ratio 596.45x



Share price chart • Mention units and currency • Footnote last closing price date



LinkedIn - overview

23








Recent news





Key management

Name Designation


Steven Sordello CFO


$80

$95

$110

$125

$140

7/23/2012 9/21/2012 11/20/2012 1/19/2013

LNKD

As of 23/1/2013

Share Price $119.02


Market cap 12.8bn

P/E Ratio 596.45x



Public Market overview • Share price • Market Cap • EV • Debt • Historical and projected sales • EBIT or EBITDA • EV/EBITDA (Forward) • P/E Ratio • EPS




24

80

90

100

110

120

130

7/23/2012 8/22/2012 9/21/2012 10/21/2012 11/20/2012 12/20/2012 1/19/2013

LNKD S&P 100

Source: NASDAQ, as of Jan 22nd 2013

114.5%

108.3%

Share price performance (Rebased to 100)



Historical financial performance

25

68%

32%

73%

27%

Revenue by geography

2011 2010 US

International International

US

Revenue by segment

68%

32%

73%

27%

Revenue growth (in $) EBITDA Growth (in $)

32.5 78.8

120.1

243.1

522.2

0

100

200

300

400

500

600

2007 2008 2009 2010 2011

Mill

ion

s

3.5 5.5 14.7

48.0

98.7

0

20

40

60

80

100

120

2007 2008 2009 2010 2011

Mill

ion

s

2011 2010

Source: Company filings



Products and solutions - overview

26

Centralized location where LinkedIn members can stay in the loop on your company news, products & services

LinkedIn app for mobiles Available for iPhone,

iPad, Android, BlackBerry and Windows

Provide a forum for its members to discuss topics of interest and meet and interact with other professionals

Target audiences in a business context, delivering high impact social media marketing solutions

Enables members to be informed on the job every day by showing them relevant news

Provides tools for members to land jobs faster

Annual conference exclusively for corporate recruiting customers





Empowers recruiting agencies and executive search firms to find, contact and place the talent

Company Pages LinkedIn Mobile LinkedIn Marketing Solutions

LinkedIn Today LinkedIn Job Seeker Platinum LinkedIn Groups

LinkedIn Talent Connect Resume Builder LinkedIn Jobs

Recruitment Advertising LinkedIn Map Recruiter Professional Services



2.5 Valuation summary

Bank credentials

Market overview


Company profiles

Valuation summary

• Football Field analysis

• Financial Models

– DCF Model

– LBO Analysis

• Operating comparable

• Trading comparable



Appendix

27


2.5 Valuation Summary

Used in all types of pitches with deal consideration

Show the a “range” of values for the asset using a football field

• Mean or median value shown to suggest possible valuation

Supported by individual valuation models

• DCF valuation

• LBO model

• Trading comparable valuation

• Comparable transaction valuation

28


Valuation summary

29

30.7

30.4

23.9

65.7

67.6

30.4

- 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0

EV/ EBITDA (x) Multiple

P/E (x) Multiple

P/BV (x) Multiple

Share Price

Football Field

Football Field



2.6 Potential targets/buyers

Bank credentials

Market overview


Company profiles

Valuation summary


• Summary page of targets/buyers

• Company profiles of targets/buyers


Appendix

32


2.7 Summary/Recommendation

Bank credentials

Market overview


Company profiles

Valuation summary



• Analysis of all possible actions that the client can take

Appendix

36


2.8 Appendix

Bank credentials

Market overview


Company profiles

Valuation summary



Appendix

• Detailed models

• Backup data

• Detailed profile

37


3. Key sources for information

Company website

• Investor Relations section, look for investor presentations, annual filings etc.

• Recent news and press releases

• Product brochures

• Company history

SEC filings

• Information about key customers, employees, competitors, products, strategy can be found in 10K, Annual Report

Call Transcript

• Current challenges facing the company

Newsrun

Recent developments

Perspective on the company from outside

38


4. Best practices

Text size and spacing

• Use same font size across tables and text boxes

• Check for extra between words

• Ensure line spacing consistency

Bullet points

• Keep bullets short and concise

• In case of a large amount of related information, create sub-bullets

• Don’t have more than 2/3 sub bullets

Financials

• Check numbers such as Revenue, Market Cap to ensure consistency across slides

• Ensure that currency and units are mentioned. Exchange rate should be footnoted

Footnote

• Check that all relevant footnotes have been added.

• Sources should always be mentioned where numbers are used

39

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