An American client was looking to create a sell-side pitchbook to present to one of its clients. This client held some stake in an Energy company and was rumored to be on the verge of disposing of its stake.
The Project involved creating a sell-side case, a detailed company overview, valuation summary, a macro study of firm’s operational market and generating a buyer universe.
JMI Implementation
Analyzed Energy sector’s performance, correlation of the firm’s SP with oil price, evolution of broker consensus valuation and trend of daily trading volume as a % of free float of the firm.
Created a detailed business profile covering business overview, segmental analysis, operational presence, ownership structure, debt maturity profile, detailed financial summary with a focus on fundamental cash flow, sources & uses of funds and future capex plans, among other details.
Prepared a football field analysis showcasing valuations based on peer comp set, precedent transaction, and analyst consensus to arrive at a range of the Company’s implied valuation.
Created a couple of pages on the macro trends of its operational markets and Energy sector as well as created mini profiles for potential financial and strategic buyers.
Value Delivered
Our research suggested that the company, despite being fundamentally sound, was undervalued and price recovery seemed difficult. It would also be difficult for the client to sell its stake in the market directly.
The output involved 14-15 pages for the client to use in the pitchbook based on the client’s formatting requirements.