Presentation to an Investor
The Situation: You are working for a publicly traded international trade company, and you need some money to complete a transaction or contract. You will need to make a presentation to a potential investor, in this case a bank or Investor. The transaction could be to open a new office, acquire a company, make an export sale transaction, or other potential business opportunity.
Exporting a franchise of Starbucks coffee shop to the Democratic Republic of Congo.
For this part, you will be preparing a ONE page Briefing Note of your financing proposal
Submit a written briefing note to educate about this company.
Important Requirements:
The company Description must represent that you understand how the company creates value, how they compare against competition, and to show and elucidate to me that you understand this business.
To help you frame up your thinking, consider the following ideas:
Your proposal will contain the following information as content that you need to convey through the briefing memo style:
- “X,Y,Z” briefing information and superbly brief summary of company (no more than 3 lines, and this can be bundled into how you introduce the issue)
- Description of Opportunity (should be in the issue description – these 2 points should make up no more than 10-15% of the total space of the paper)
- Company Capabilities (financial and operational capability with respect to the opportunity, oftentimes put in the Rationale section)
- Key Risks & Mitigating Factors
- Rationale for Investor (Explain & Summarize the key reasons why the investor/decision-maker should agree with your recommendation and proceed forward with the next steps. This is often called the benefits for the person / company)
- KISS (which stands for Keep it Simple Summary) table at the end. For eg. Here is one that you might use when summarizing a credit request for a company involved in the sale of industrial equipment.
- Financial Ask:
- Term:
- Proposed Interest Rate:
- Country of Opportunity:
- S&P Rating of Country of Opportunity
Your proposal should have the following major headers and be structured as a briefing note:
- Issue: What’s the company’s problem which is being solved by your opportunity. Eg. They are struggling with heavy fixed costs and tight global competition
- Recommendation: This is your proposed solution. This is your ‘opportunity’. Eg. Build a plant in Vietnam with a lower fixed cost, and lower variable costs to reduce cost load, while also positioning company to respond to South East Asia demand – an area of growth for the company.
- Rationale: This is why your opportunity makes sense to solve the problem. This MUST include financial ratios / analysis to show that you’re suggesting an opportunity which the company can actually execute on.
- Alternatives: This is where you identify real alternatives to your proposed opportunity
- Next Steps: This is where you will propose a financing structure / investment structure to accomplish your opportunity. You should include your KISS table at the end.
