So you’ve done it — you’ve found a company that precisely aligns with your firm’s investment thesis, offers exciting synergies, and shows financial promise.
Now it’s time to present to the investment team. How do you ensure that they not only see your vision, but they also want to put money into it?
In this article, we break down how to structure and deliver a compelling pitch for M&A.
How to Structure Your Pitch
When you pitch an M&A target, you’re essentially telling a story. Your pitch deck maps out that story. It’s not just a collection of stats and graphs — it’s a structured narrative.
Here are the key components you need to effectively sell that narrative:
- Executive summary
Think of the executive summary as your hook. This is where your pitch begins. You need to provide your audience with a high-level summary of the story you’re about to tell and make them want to hear more.
Clearly and succinctly state the purpose of your pitch. Touch on the main highlights of your proposal, including the target company’s background and the strongest ways it aligns with the firm’s goals.
- Strategic reasoning
Next, dig deeper into the “why” of your pitch. What makes this company the right fit for your firm? How does it align with the firm’s strategy?
Explain how the acquisition will create value and strategic advantages for both the buyer and the target.
- Market opportunity
Walk your audience through an analysis of the overall industry landscape. Break down the top trends that are shaping the current market. Discuss how your proposed target stacks up to its competitors. Point out unexplored opportunities that your combined organization could tap into and new ones that it could create.
- Value proposition
Convey to your audience how the firm and the target can bring something unique to the table that allows them to capitalize on the market opportunity. Highlight the strengths that each company has and how they complement each other. Use specific, concrete examples and relevant data to support your points.
- Financial modeling
The pitch isn’t all about numbers and stats, but this is where the figures really need to shine. Present your audience with a thorough picture of your proposed target’s finances. Use whatever financial data is available (ideally 3-5 years) and supplement with estimates or comparable company data when needed.
Include valuation metrics such as EV/EBITDA or EV/Revenue to contextualize the deal. Use clear data visualizations to help illustrate your points and break down complex information.
- Potential risks
No matter how strongly a company aligns with your firm’s strategy, there are always some risks involved. They could be cultural, regulatory, market-related, integration-related, or otherwise. You need to acknowledge those risks in your pitch — and show that you have a plan to address them. This helps you build credibility with your audience.
- Management team & integration plan
Your team needs to understand who they’ll be working with if the deal moves forward. Part of your pitch is highlighting the experience and expertise of the target company’s leadership. Explain how the post-deal integration or management transition will be handled.
How to Deliver Your Pitch
The way you deliver your pitch is just as important as the material itself. Your audience needs to understand and believe in your story, and that means they have to trust you.
- Tailor your pitch to your specific audience. Do your homework. Know your acquirer’s background, industry, financials, and goals so you can speak directly to those points.
- Focus on the narrative. Again, when you’re pitching, you’re telling a story. Use relevant data to support your point, but don’t turn your presentation into a data dump.
- Be polished and professional. Your audience needs to take you seriously. They won’t if your deck is littered with typos or if you’re presenting yourself too casually. Make sure your deck is clean and consistent, from slide design to font to grammar. Don’t exaggerate to try to sell your story. Be engaging, but honest.
- Respect the audience’s time. Your investment team’s time is valuable — don’t waste it. Keep your presentation tight. Focus on the information with the highest value and impact. Aim for 10-15 slides as a good rule of thumb.
- Practice, practice, practice. The best way to ensure you adhere to the guidelines listed above is to rehearse. Practice your pitch until you know it backwards and forwards. Try to get feedback from your peers or mentors and adjust accordingly. Be prepared to answer questions from your audience.
Perfect Your Pitch with the Grata Platform
Grata has everything you need to craft a thorough, compelling pitch. Quickly find public and private comps, precedent transactions, private company financials, fragmentation data, executive contact information, and much more — all in one place.
Schedule a demo to get started.
Jumpstart Your M&A Career with Grata Scholars
If you’re an undergraduate student interested in pursuing a career in M&A, consider applying to the Grata Scholars program. Learn the ins and outs of the industry over the course of five weeks — from financial modeling to networking skills to what the analyst job looks like to building a strong pitch with Grata.
Scholars who graduate in the top 10% of their cohort will have their resumes added to our alumni database, which is shared with our clients.
Learn more about the program and apply for the upcoming semester here.
