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Investment Recommendations

Investment Recommendations. Purpose Content Structure. Agenda. Diligence B discussion Investment Recommendations Goals Content Structure Backup Presentation. Goals of the Recommendation. To overview – Present a clear picture of the company, product and opportunity

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Investment Recommendations

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Presentation Transcript

  1. Investment Recommendations Purpose Content Structure

  2. Agenda • Diligence B discussion • Investment Recommendations • Goals • Content • Structure • Backup • Presentation

  3. Goals of the Recommendation • To overview – Present a clear picture of the company, product and opportunity • To persuade – why do or not do the deal? • To inform – • What info is needed to decide? • Present the diligence results in a manner that supports the recommendation • To provide for further inquiry – what is missing? • To plan the future – what happens next?

  4. Content • Company, product, market, customer, competition, competitive advantage, management, finances • Investment • How much, terms, who else • Facts (diligence): Verified, discovered, calculated • Market • Competition • Comparables • Valuation • Issues raised by diligence, not addressed in plan • What did you pay attention to?

  5. Content (Cont.) • Unknowns, Risks, Uncertainties • What don’t we know • What don’t we know that we don’t know • Recommendation – yes, no, with conditions • Basis for the recommendation • Markets – size, growth rate, key features • Competition – direct and indirect, key features, strength and weaknesses • Comparables – business model, financials, valuation • Valuation – how much? Exit and when?

  6. Structure • Overview • Issues Explored • Facts • Repeat “2.” and “3.” • Issues, Risks, Uncertainties • Recommendation

  7. Backup • Diligence Memos • Supporting Documentation • Reports • Articles • Collected data • Make sure it is relevant

  8. Presentation Goals • Repeat the same in ten slides or less • Overview, issues, facts, unknowns, recommendation • Highlight the “killer” points • Does it matter • Make it black & white • Have backup ready • Make the recommendation clear • It’s a binary call… • Or is it? • When is the right answer, no answer? • When is collecting more data the right answer? • Make it short • Make sure it includes what happens next

  9. Key Points • Are you clear, concise, accurate? • Does your diligence support your recommendation? • Does your reasoning support your recommendation? • Does the backup material matter? • Is your recommendation clear?

  10. Grading • Did you meet the Recommendation Goals (Slide 3)? • Did you present the appropriate Content (Slides 4 and 5)? • Did you meet the Presentation Goals (Slide 8)? • Did you meet the Key Points (Slide 9)?

  11. Schedule – remainder of classes • See word doc…

  12. Next Week • Homework • Draft recommendation • Draft presentation • Question card D (CEO) • Draft presentations

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