When you get ready to raise capital for your investment, or your project, most people understand the importance of having a good valuation or a customized financial model that supports your valuation. However, often people overlook the importance of a great financial story. Here are a few recommendations for creating an investment presentation that stands out among the competition.
When you get ready to raise capital for your investment or your project opportunity, most people understand the importance of having a good valuation or a customized financial model that supports your valuation. However, often people overlook the importance of a great financial story. This video highlights a few recommendations for creating an investment presentation that stands out among the competition such as understanding key investor needs and developing a table of contents and storyline that speaks directly to those needs. These are elements of an effective presentation that support Investor Presentation Development for Investor Relations Marketing and Investor Relation Services in any industry.
When you get ready to raise capital for your investment, or your project, many people often underestimate the importance of having a good valuation or a customized financial model that supports your valuation, but often people overlook the importance of a great financial story.
You want to be able to tell your story, because investors have lots of different opportunities to invest their capital and to look at different projects. So you want yours to stand out and not look bland and make sure it has the relevant information that they’re going to want from their viewpoint.
A few recommendations that we have is:
- One, make sure your presentation looks professional and presentable and it’s branded.
- Two, have the relevant information for the stakeholders you’re trying to communicate to.
- And third, make sure your investment story follows a storyline and it doesn’t jump all over the place.
So one example that we have of an investment presentation, first looks branded and it’s very easy to see who the company is that is raising the capital and you have a disclaimer
in case there’s any forward looking statements. That’s important, but the table of contents gives your potential investors a quick glance at what you have in your investment presentation.
You have an introduction, investment opportunity, your economics and it goes on, but it’s very clearly laid out, but then you pop into the introduction.
You want to be able to tell them quickly, who are you? Are you a company that has existing operations? So set the stage for who you are and place credibility on your background and your past successes.
The next is what is the investment opportunity that your investors or lenders are looking at and you want to be clear and concise as to what that is, but also differentiated. They’re looking at lots of opportunities, but you want to lay out what this particular opportunity is and why they would be interested. So lay out the key points because you’re not always going to be able to be there to be able to tell them your story. So you want to be able to lay it out for them.
And then what is the opportunity overview. Be clear and concise and make sure you pull out the differentiating story that you have. But then very important are the economics. What makes your opportunity compelling from an economic standpoint, what are the key measures of merit for the different assets you’re looking at, for the different companies, or the overall portfolio?
Be sure to lay out any information in a very professional way; easy to look at charts, easy to read, very, very professional, but also laying out what are those key drivers behind the investment. In this case, it might be production, it might be the particular products you’re looking at, it might be the real estate building you’re trying to sell, and then it goes into metrics. Again, very professionally laid out.
You want to look at key value drivers with the long life of the assumptions, sensitivities. What is your particular investment proposal? A sensitive to lay that out in a very professional way and then there’s particular assets you want to dive into a little bit more deeply. Here’s where you can do it, but still keep it high level and touch on the aspects that your investors are going to be most interested in.
Timeline. You want to be able to speak to the timeline, what’s happened in the past, what’s going to happen, what are the key milestones, and again, laying that out in a very visually appeasing way, appealing way, when it’s also the financial time, my layout, what are you looking to do?
What are you looking to raise? What’s the timing of it? If there’s any health, safety, security or environmental concerns that your particular project has, I think it’s important to lay those out as well. Talk about the programs you have and the objectives, the management, who’s the key staff with the key management, highlight them. What’s their credibility? I think that’s very helpful to have that all in one place, include a short bio.
Are there any key risks to your project? You want to be able to lay those out, particularly if you have mitigation plans in place already. How are you going to mitigate those risks?
And next steps. Oftentimes we forget to tell investors and key stakeholders what are the next steps to after this presentation, what do you want to do.
And not last but not least, who are the contacts? Who do they contact if they’re interested in finding out more about your investment opportunity?
Whether you’re conducting capital intensive project valuation for construction project valuation such as pipeline valuations, renewable energy valuation, valuing E&P companies or oil & gas asset valuations (including Oil & Gas Company Valuations, Upstream Company Valuations, Upstream Oil & Gas Valuation), telling the right story for your investment opportunity is essential.
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, 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/
- Investor Presentation Development
- Investor Relations Marketing
- Investor Relation Services