Ability to Pay

Investment Banking Slide Examples of Ability to Pay

Tl;dr: Part of a collection of real examples of M&A investment banking slides. This blog covers Ability to Pay. See the PowerPoint presentations investment bankers are paid millions for. No matter your job, or your aspirations, you can learn from these slides.

This is part of a collection of 67 free M&A presentations from the top 20 banks (based on ranking, and also the quality of presentation for you to learn from).

Collection of M&A slide examples

The main page for all the M&A resources is here.

I have broken out 827 examples of slides across 32 sections. You can click through to the section you want to learn about next here:

Company Overview
Corporate Structure
Management Projections
Research Analyst
Comparison Financial Projections
Analysis At Various Prices
Share Price Analysis
Volume Weighted Average Price
Regression Analysis
Discounted Cash Flow
Weighted Average Cost Of Capital
Comparable Companies
Comparable Transactions
Dividend Discount Model
Leveraged Buy Out
Premiums Paid
Sum Of The Parts
Football Field
Executive Summary
Offer Summary
Offer Comparison
Accretion DilutionĀ 
Exchange Ratio And Contribution Analysis
Shareholder Analysis
Ability To Pay
Strategic Options
Transaction Case Study
Next Steps
Full valuation
Sales Pitches

Is this blog for you?

Why the heck should you care? Investment banks (historically) attracted the best and the brightest.

  • Slide structure/design: Learn how complicated concepts are structured and designed in PowerPoint
  • Analysis approach: See exactly how complex financial methods are presented
  • Strategy and communication: M&A deals are not (normally, other than many Duff and Phelps decks) cookie cutter. There’s a host of topics that need to be dealt with
  • Morbid interest: I used to do this for a living, but it’s still interesting to see how PPT are made… but then maybe it’s just me and so FML šŸ˜‰

Who this will help:

  • You want to work in banking: There’s a lot of applicants. Knowing the job helps you answer questions
  • You work in banking: Even if you’re an MD, you need to know how the best are structuring their thoughts/analysis
  • You write presentations: You can’t buy learnings like this. You can learn from the slides
  • You have a curious mind: Good for you

About Ability to Pay

Ability to pay, shockingly means what is the ability for someone to pay, and can they afford what you can? I 99.9% relate this analysis to interloper analysis (competitive deal you want to win), but I guess it could apply to your client- I’ve just never done that.

Why these slides are made

The last time I had to do this analysis was when I was running a deal and we were head to head in an acquisition with another asset manager. They were a little smaller so the question was “how much can they afford to pay?” Of course, our client didn’t want to pay more than they had to, so we only need to bid a $1 more than they can afford.

Comments on making these slides

This is sort of your standard valuation exercise, but you are doing it with assumptions. You’re sort of fecked if the interloper is private, but even if the interloper is public, you still need to make a lot of assumptions based on the balance sheet, ability to take on debt, etc. It’s never going to be a perfect analysis, but it’s better than nothing.

I’m not going to spend much time writing about this section as I only have two examples of slides.

Examples of Ability to Pay

I’ve not been able to find many examples, so help me out if you have some examples!

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