Creating a compelling financial presentation or investment presentation is key when raising capital or selling an asset. In this video, we concentrate on the key pieces of information you’ll need to include to satisfy your stakeholders or counterparties.
About Darby Finance
Darby Finance, a financial consulting services and valuation advisory firm, helps 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 finance and investor relations. Visit us: www.DarbyFinance.com Contact us: www.DarbyFinance.com/Contact-us/
Creating a compelling financial presentation or investment presentation is key when raising capital or selling an asset. In this video, we concentrate on the key elements of information you’ll need to include to satisfy your stakeholders or counterparties such as credibility statements, concise content and establishing the “why” behind the investment. Whether you’re involved in the Valuation of an Oil & Gas Company or Financial Forensic Services, these are elements that support any organization in Investor Presentation Development for Investor Relations Marketing in any industry.
Investors and lenders have lots of different opportunities to invest their capital. They’re looking at projects day in and day out, and they’re looking for ones that one fit into their portfolio or what they’re looking to build a portfolio in and they’re looking at ones that look differentiated, that’s going to help them differentiate their portfolio and that are compelling.
We get a lot of before presentations and they’re not compelling, they’re not differentiated and they’re not professional. So what I’d like to do is to walk you through a before presentation, a common before presentation, walk you through some of the things that probably won’t resonate very well with lenders and investors and then show you an after presentation and what we’re hoping to achieve with that presentation with investors and lenders.
So here’s one typical.
This is for a generic project in the Gulf of Mexico and this could be anywhere in the world. We look at projects all around the world, but this particular one was in Gulf of Mexico and we start right in with an overview of the project. No table of contents. It’s not really clear who their audience is. What’s nice is that they are saying why these leases, but this particular investment, they were looking to raise anywhere between $100 million to 140 million and you’re not getting a lot of good information that is either targeted toward equity investors or lenders or just general stakeholders for that matter.
Here, there’s more information. Project overview, very wordy, not very clear. It doesn’t catch my attention as an investor. And again, it’s just extremely wordy, the investment opportunity, who are the group of investors looking or who’s the group looking for investment? What’s their credibility? What are they looking to raise? What’s the investment? It’s very hard to follow here.
There’s a few call outs of where the assets are and again, now we’re looking at a strategy. You can tell it’s bland. It’s boring. It’s not going to keep your attention. It’s probably not keeping your attention on this short video blog. Somebody just went into their Excel spreadsheet, took a picture, and you can imagine if you’re sitting in the chair of a lender or an investor, this presentation does not give you the confidence that the company or the party on n the opposite side of the table really know what they’re doing and they’ve spent a lot of time looking at this particular investment opportunity.
It looks like they took a quick swag. They’ve looked at something 24 hours.
This particular asset, there’s a team of people that’s been working on this for over a year, but you would never have that impression by looking at this presentation. You keep going and they’re going to talk about a couple of key highlights from the project, but again, nothing really stands out and it certainly doesn’t give the impression that these are a sound group of, a sound team that knows what they’re doing and they’ve been doing this for decades.
Let’s jump out of this and look at the after picture and very quickly when you sit down with the team and you started discussing with them, what, what made their project stand out?
Well, you can have a 10-minute conversation and after you ask key questions, you were really pulling out the story and the point is to get that story in your investment presentation and get your passion of your project and your presentation and so it’s not looking like a bland investment PowerPoint sitting in front of your potential investors and lenders and your credibility just pops out and there’s no question.
So here it was making sure they had a branded look that would resonate with investors and lenders that are used to looking at hopefully, you know, good investment presentations from the few that they choose to invest in. Now again, 80 percent of what they look like is pretty bland, but you want to be in the top echelon of what they’re looking at. But here, what’s the highlight? Why this particular region? Why invest here? Why now? Why this investment team and why this team had wonderful differentiating factors that they were able to highlight and quickly call out.
Again, what are the different assets that they are looking at? This particular one, they were looking at three different or four different opportunities and then they had a portfolio roll up and so if any particular investor or 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.
But from the before presentation, it was very hard to discern the different assets that they had to choose from that they were looking at to develop. Again, presenting information and the key information that your lenders or your investors are going to be interested in, whether it be coverage ratios or net present value, key value drivers. You want to highlight those, doesn’t matter what industry you’re in, highlight the key value drivers and what are the threats to those value drivers.
Profiles, sensitivities. This is a common tornado chart that you should include in your investment presentations. What’s the impact of a changing uncertainty to your value metrics? So if you’re trying to be compelling, if you’re trying to raise capital or if you’re trying to sell an asset, you need to make sure you’re concentrating on the key pieces of information that your stakeholders or your counterparties are looking to get.
I hope this video blog was helpful. If you’d like content on financial modeling and financial presentations, please check out more blogs at www.darbyfnance.com or visit our YouTube Channel at https://www.youtube.com/channel/UCp_9RfcyqiyZam1rmcHhdhw
About Darby Finance
Darby Finance helps 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.
- Investor Presentation Development
- Investor Relations Marketing
- Valuation of an Oil & Gas Company
- Financial Forensic Services