Investment Banking Slide Examples of Shareholder Analysis

Tl;dr: Part of a collection of real examples of M&A investment banking slides. This blog covers Shareholder Analysis. 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

Exchange Ratio And Contribution Analysis

Transaction Case Study

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 😉

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 Shareholder Analysis

Shareholders are the people that own the stock of a public company. There are two main buckets:

Retail: Think ‘diamond hands’. These are normal people with not that much cash. They trade in their own name on Robinhood etc
Institutional: These are the only type of investors that the CFO cares about. Why? Because they probably own 90% of the stock

Your institutional investors can be highly influential. If youi look at the Hudson example, the top-10 investors own 60% of the stock. So if you’re thinking about who you need on your side to do something strategic, you only need to talk to 10 people to deal with 60%.

So, as an M&A banker, you’re only going to go so deep on public market stuff. If you are doing a big deal and you have an ECM team (Equity Capital Markets) you’re likely going to have the ECM team do the analysis and make slides for you. In fact, that’s one of the reasons corporates work with the big investment bankers. So for example, when I was at Lazard I was doing a co-advisory deal with I think Citigroup or Lehman brothers (I forget) and we had their ECM team feed us loads of info to make fancy slides from another point of view.

Why these slides are made

I never worked in ECM and I only did one big IPO, so I’m a bit limited on insights here. Hopefully, someone more experienced will contribute some content?

The basic premise when you do this analysis is “will your investors be happy with the transaction, and who do you need to talk to?” You’ll see some examples of shareholder overlap. There’s a few things to consider:

What price did they buy shares at?: Investors are in it to make money. If they can see upside then they’ll be in favor of a deal. You’ll look at the average weighted price they bought in to understand what that means to them
What similarities are there: If investors like a sector or strategy, then you would assume that they would liek to keep that exposure. So if they are an investor in the acquirer and the target, what’s not to like… so long as the deal makes sense?

Now there is another consideration. It’s called “index inclusion”. I was going to make a post on these but I could only find around 5 slides so it didn’t warrant making a post. So, if you are large enough, a huge win is getting in an MSCI or S&P index if you meet the criteria. This pretty much guarantees that you will have some price support. Ok feck it. I’ll add the slides at the very end of the examples in case you’re interested. Welcome.

But anyway, this is now in ECM territory. As an M&A banker you will touch on this stuff, but it’s not exactly your job. If you work in ECM and want to shame me with my ignorance, reach out and let’s improve this.

Comments on making these slides

So I did these slides a few times, at least at a basic level. We had a subscription to something called Lion Shares where I could pull the info I wanted. These slides aren’t terribly difficult to make relative to other things you will have to do. I’m sure someone knowledgeable could educate you in an hour.