Seems every pitch deck I see on the web for examples are for VC based startups. Building out my deck now and here is what I have included. What am I missing?
1. About: Rough summary of the deal (company) under LOI and the fact that I am a self-funded searcher.
2. Industry: This is the "Problem" with facts about the industry the company operates in and current market conditions.
3. Key Strenths & competencies: This is the "Solution" built around a deeper history of the company and the highlights about why they are desireable for acquisition, and solve the problems highlighted in the previous slide.
4. Strategic Goals: This is th 5 year plan for growing the company. Includes financial targets and operations targets.
5. Clients: Overview of where the business gets their revenue.
6. Competitors: Key metrics defining where they fit in with top competitors.
7. Business Model: This highlights how they fit into the marketplace as compared to competitors.
8. Founder: Highlights about the head of the Search Fund, who will take on the CEO/President role and head operator. Team info would be included here is there were additional partners.
9. Funding: Graphic showing use of funds including SBA Loan, Seller Note, Equity Investment, and Searcher Investment
10. Financial: Projected financials for 5 years covering the expected length of the investment term. Includes Gross Sales, COGS, GP, Operating Expenses, Op Income, Net Income, and EBITDA.
11. Investment Targets: Covers high-points of LLC Block Size and Quantity, Preferred Note Target, Preferred to Common Blocks/Shares Multiple, Target IRR, Target MOIC
Also, would love to hear what you did different and what slides you felt were most impactful if you successfully raised funds!
What's missing from my Self Funded pitch deck for investors?
by a searcher from California State Polytechnic University - Pomona
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
Strategic Rationale & Acquisition Archetypes:
Strategic Rationale to be articulated for each transaction
Categorize deal into different Archetypes for which there are different requirements to be focused on:
o Expand into new geography: Attractive new geography that is faster growing/with higher ROI vs. investing in existing markets
o Vertical expansion (value chain coverage): Synergistic acquisition driving further entrenchment with clients, very attractive valuation
o Horizontal expansion (consolidate existing market): Highly synergistic, both on costs and revenues from market position strengthening, very attractive valuation
o New product vertical: Opening large and fast-growing TAM, synergistic with existing customer relationships and ability to roll-out across geographies
o Tech product acquisition: Improves share of digital revenues and quality of revenue, drives synergies from workflow improvements etc.
Country & Macro Analysis:
Macro Stats & Attractiveness
o GDP per Capita: Real GDP per Capita 22A-27E CAGR >[3-5]%
o Inflation: CPI 23E <[10]%
o Interest Rates: Low volatility of rates historically; stable forward curve/outlook
o Population Growth: Growing Population
o Wealth / Homeownership: Rapidly developing middle-class, steady increase in homeownership levels
o FDI evolution: FDI CAGR 19-22 >[5]%
o Exchange rate volatility: FX variation <[5-10]% YoY
Quality of Institutions
o Ease of doing business index: Solid ranking o Corruption index: Solid ranking o Level of regulation: Strong law enforcement and legal framework
o Government: Low (or non-existent) government turnover, pro-business policies, limited social unrest Target Analysis:
Business Model:
o Tech-enablement: Healthy share of tech-enablement of both revenues and/or operations
o Revenue model resilience: Contractual protection against inflation, visibility on future revenue streams (contracted/recurring revenue
) Market/TAM: o TAM and expected growth: Sizeable TAM >€[50]M expected to grow >[10]% CAGR 22-27E, with sizeable whitespace and penetration potential
Competitive Landscape:
o Competitive positioning: Top 3 player in market, differentiated by tech-enabled offering o Share evolution: Track record of market share gains
o Competitive differentiation: Differentiated technology, unique capillarity/reach, strategic value chain positioning
o Fragmentation: Fragmented market with lots of consolidation opportunities
o Rationale: Strengthens competitive positioning and/or generates meaningful synergies
o Revenue and Cost Synergies
Financial Profile o Organic Growth: >10% historical and go forward organic growth
o Margin: >20% and expanding via operating leverage
o Cash Conversion >80%
o Client and/or Supplier Concentration: Top 3 clients / suppliers account for <50% of revenue / COGS
Valuation: o Size (TEV): [€5M-30M]
o TEV / LTM EBITDA: <6-7x (pre synergies) / <5-6x (post synergies); attractive growth adjusted multiple
o Synergies: Cost synergies and potentially revenue synergies to be quantified and at ~10% of cost base
Adapt to your needs