What is a 'Pitchbook'

A pitchbook is a sales book created by an investment bank or firm that details the main attributes of the firm, and it is used by the firm's sales force to help sell products and services and generate new clients. Pitchbooks are helpful guides for the sales force to remember important benefits and to provide visual aids when presenting to clients.

BREAKING DOWN 'Pitchbook'

There are two main types of pitchbooks. There is the main pitchbook, which contains all of the main attributes of the firm, and one that contains details about a specific deal, such as a company's IPO or investment product.

Overview Pitchbook

The main pitchbook provides general overview about the firm. For an investment bank, it would show information like the number of analysts, its prior IPO success and the number of deals it completes per year. For an investment firm, it will show information such as the financial strength of the company, and the many resources and services available for its clients. If the pitchbook is being used by a team or individual financial advisor, there could be biographical information as well. All the details displayed in the pitchbook are points that the sales team should focus on when selling the benefits of the firm to potential clients.

Product Pitchbook

For an investment bank, this form of pitchbook focuses on all of the benefits of the issue, helping brokers and investment bankers demonstrate how the firm can service the specific needs of their potential clients. It would have more detailed information about how the potential IPO process could play out for the potential client. It would also show comparable IPOs within the same industry that the investment bank has had success in the past.

In 2011, the company Autonomy the acquisition target of several larger competitors. Hewlett Packard and Oracle were interested, but HP eventually became the victor and acquired the software infrastructure company. Oracle decided to post the IPO pitchbook, which was developed by the firm Qatalyst Partners, on its website. In the pitchbook, Qatalyst shows examples of how Oracle would benefit from acquiring Autonomy, showing it will increase its competitive advantage in areas where Oracle has no footing. It also shows the key financial metrics of the company and how it has both positive revenue and margin growth. The book also shows the partners and customers that Oracle will immediate acquire once it purchases the company. It also goes into detail about Automony's management team and directors

For an investment firm, the pitchbook would be more product-oriented. It could show the track record of an investment portfolio, using charts and comparisons to an appropriate benchmark. If the investment strategy is more advanced, it would display the method of selecting stocks and other informational data that would help the potential client understand the strategy.

RELATED TERMS
  1. Bought Deal

    In investment banking, a securities offering where an investment ...
  2. Investment Banking

    A specific division of banking related to the creation of capital ...
  3. Investment Banker

    Someone working at an institution raising capital for companies, ...
  4. Open Architecture

    The option offered by an investment firm to let its clients invest ...
  5. Buy, Strip And Flip

    When a private equity firm buys out a target firm (usually with ...
  6. Account Executive

    This term refers a person who has primary responsibility for ...
Related Articles
  1. Investing

    Hedge Fund Due Diligence

    Analyzing a hedge fund will help you determine whether it's a good investment and a good fit.
  2. Financial Advisor

    A Day in the Life of an Investment Banker

    Take a look at a day in the life of an investment banker, one of the most sought-after and stressful jobs in the financial sector.
  3. Investing

    Analyzing Oracle's Price & Profitability Ratios in 2016 (ORCL)

    Understand Oracle Corporation's business by taking a close look at its profitability and price ratios.
  4. Investing

    Oracle's 4 Key Financial Ratios (ORCL)

    Learn about Oracle's sales growth rate, debt/equity ratio, return on equity and operating margin, and find out how they affect its stock valuation.
  5. Investing

    Impact of a Weaker Euro on Oracle's Financials (ORCL)

    Understand what is happening to Oracle's financials and how the weaker euro is affecting the company. Learn how the company can recover.
  6. Investing

    Oracle Shows More Strength Than Expected (ORCL, CRM, MSFT, CSCO)

    Oracle keeps delivering.
  7. Small Business

    Top 8 Companies Owned by Oracle (ORCL)

    These are eight of the top companies acquired and owned by Oracle, including which company cost Oracle over $10 billion to acquire.
  8. Personal Finance

    Oracle Ordered To Pay HPE $3 Billion In Damages (ORCL, HPE)

    Oracle was ordered by a California jury to pay Hewlett Packard Enterprise $3 Billion in damages over Itanium lawsuit. Oracle plans to appeal.
  9. Investing

    What to Expect From Oracle's Earnings (ORCL)

    Oracle has tons of work to do before threatening Salesforce.com's cloud dominance, but the stock is attractive when combined with its 1.57% dividend yield.
  10. Small Business

    Tips For Fitting In At Your Brokerage Firm

    Part of starting a successful career as a broker is finding the right place to work.
RELATED FAQS
  1. What is a typical price-to-book ratio in the financial services sector?

    Understand key distinctions of the financial services sector and learn some of the equity valuation metrics analysts use ... Read Answer >>
  2. What percentage of asset management firms are privately held and not publicly traded?

    Explore asset management firms, a major part of the financial services sector, and learn about the respective markets served ... Read Answer >>
  3. What is accrual accounting in Oracle Apps?

    Learn more about Oracle Applications, an enterprise software system that enables businesses to streamline information systems ... Read Answer >>
  4. What is the difference between private equity and venture capital?

    Learn the differences between private equity and venture capital, especially in terms of how these types of firms invest ... Read Answer >>
  5. Why would a value investor be drawn to the financial services sector?

    Understand the nature of businesses in the financial services sector, and learn why they are appealing investments for value ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center