• How to Make Compelling Investment Presentations

    Creating compelling financial or investment presentations is key when raising capital or selling an asset. Investors and lenders have many opportunities to invest their capital, so when designing your investment presentation, there are a few key elements that you must include to stand out. In this video, we concentrate on the information you’ll need to include to satisfy your stakeholders.

    The Don’ts of Investment Presentations

    No Table of Contents

    In many of the presentations our clients bring to us to help them redesign, one of the first elements we see right away that is missing is a Table of Contents. Without a Table of Contents, those perusing your presentation won’t have an immediate and clear idea of who the presentation is intended for, or what information will be covered in the pitch deck.

    No Targeted Audience

    In the example presentation in our video, the information is not targeted at any specific type of investor or stakeholder. The problem with that is you end up including extraneous information in your investment presentations that detract from the highlights and selling points of your asset or investment opportunity. The project overview is very wordy and not very clear. It’s not attention-grabbing, and in the first few pages of your presentation, you want to grab your audience’s attention immediately.

    Poor Flow of Information

    Information flow is critical to keeping potential investors engaged and understanding how your opportunity may fit into their portfolio. In our video example, too many crucial questions are left unanswered. Who are the group of investors looking or who’s the group looking for investment? How much investment are they looking to raise? There’s no good flow of information and it makes it very hard to follow.

    Bland Presentation of Data

    Data, the lifeblood of your project and what will eventually sell your opportunity, should never be presented in a bland or boring format. In our example in the video, the project team included a screenshot of their Excel spreadsheet. You can quickly see how this presentation does not promote confidence that the company or the project team is competent or that they have spent the required time to research this particular investment opportunity. Instead, it looks like they’ve thrown it all together in a short period of 24 hours. You’d be surprised to hear that this team has been working on this particular asset for over a year. You would never have made that presumption by looking at this presentation.

    Does Not Properly Represent the Project Team

    After reviewing a few more slides, nothing about this presentation or asset/opportunity really stands out, and the presentation certainly doesn’t give the impression that this a sound team who knows what they’re doing and that they’ve been doing this for decades. I spoke with this team personally and, after only a 10-minute conversation, was able to pull out the true story of this opportunity, and was able to witness the expertise and the passion they had for this project – things that did not come across in their original presentation.

    The point is to get that expertise in your investment presentations and exude your passion for the project through your presentation. If you do that, you’ll move away from a bland investment PowerPoint and your credibility will come to life.

    The Do’s of Investment Presentations

    Good Design

    As part of Darby Finance’s Investor Presentation Services, we start with a redesign that gives our clients’ a branded look aligned with their company’s brand. Book covers sell books and good design in investment presentations catches investors’ attention and is an important element to not underestimate in your presentations.

    Remember, approximately 80 percent of the presentations are bland. You want to be in the top echelon of what investors are considering.

    Key Highlights

    Including a brief overview along with the key highlights is not only a must of a compelling investment presentation, it’s also smart. Investors are short on time and reserve their attention for projects that capture their attention. You want to quickly explain the who, what, and why of your opportunity before delving into the details. What are the key highlights? Why this particular region? Why invest here? Why now? Why this investment team? What differentiates your team from the competition? What are the different assets that the investors or stakeholders are looking at?

    Relevant Information

    In this particular example, there were three or four different opportunities. We included a portfolio roll up so if any particular investor lender only wanted to invest in one particular asset, it would be very easy to see what the different options were from this investment presentation and then dive deeper into those details. Presenting information that your lenders or investors are interested in, whether it be coverage ratios or net present value, key value drivers, etc is key to capturing their attention…and keeping it. What are those value drivers and what are the threats to those value drivers? Include profiles and sensitivities.

    Utilize Charts and Visual Aides

    A common chart we use in our presentations is a tornado chart. We also use charts to show the impact of a changing uncertainty to key value metrics. Using well-designed charts to quickly and clearly present data is another key element to crafting compelling investment presentations as well as demonstrating your thorough understanding of the opportunity.

    When raising capital or selling an asset, you need to make sure you’re concentrating on the key pieces of information that your stakeholders, investors, or lenders are looking to receive.

    If you’d like to learn more about how Darby Finance can help your investment presentations stand out among your competition, contact us today.

    About Darby Finance – A Leading Financial Consulting Firm

    Darby Finance helps our clients make better financial decisions by transforming complex data into a compelling and easy-to-understand financial story. We work alongside our clients to develop customized financial models, valuations, and sophisticated investor presentations while utilizing more than 40 years of experience in energy, finance and investor relations.

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