Investment Banker Prompts

"Generate a comprehensive due diligence request list for a potential acquisition target operating in the [Specify Industry, e.g., SaaS Technology] sector. The target company is [Specify Size/Stage, e.g., a mid-market private company with $50M annual revenue]. Structure the list into key areas: 1. **Financial:** Audited financials (3-5 years), management accounts, budgets/forecasts, CapEx, debt schedules, tax returns, working capital analysis, quality of earnings report requirements. 2. **Commercial/Operational:** Customer contracts (top 10-20), customer concentration/churn, sales pipeline, supplier agreements, supply chain risks, operations overview, IT systems & infrastructure, R&D pipeline. 3. **Legal & Compliance:** Corporate structure, articles of incorporation, major litigation, regulatory compliance, permits/licenses, IP portfolio (patents, trademarks), employee agreements, environmental reports. 4. **Human Resources:** Organizational chart, key management details, compensation & benefits plans, employee turnover, potential integration issues. 5. **Synergies:** Data requests needed to quantify potential cost and revenue synergies. Specify key documents required for each sub-point and highlight potential red flags or areas requiring deeper investigation based on the industry."

"Act as an Investment Banking Analyst. Perform a Comparable Company Analysis (Comps) for [Target Company Name], a private company operating in the [Specify Industry/Sub-industry, e.g., E-commerce Logistics] sector. 1. Identify a list of 8-12 publicly traded peer companies based on business model, size, geography, and growth profile. Justify the selection criteria. 2. For each peer company, gather the following data from reliable financial sources (specify potential sources like CapIQ, Bloomberg, SEC filings): * Current Market Capitalization * Total Enterprise Value (TEV) * LTM (Last Twelve Months) Revenue & EBITDA * NTM (Next Twelve Months) Consensus Revenue & EBITDA estimates 3. Calculate the following valuation multiples for each peer: * TEV / LTM Revenue * TEV / LTM EBITDA * TEV / NTM Revenue * TEV / NTM EBITDA * P / E Ratio (if applicable/relevant) 4. Present the results in a summary table format. Include columns for each peer company and rows for each metric/multiple. 5. Calculate and display the Minimum, 25th Percentile, Median, Mean, 75th Percentile, and Maximum for each key valuation multiple across the peer group. 6. Briefly comment on any outliers or specific adjustments needed (e.g., non-recurring items)."

"Create a detailed, section-by-section outline for an Investment Banking pitchbook for a [Specify Type: e.g., Sell-Side M&A Mandate, Buy-Side Acquisition Search, IPO Pitch, Debt Financing Proposal] for a client named [Client Company Name] operating in the [Specify Industry] sector. The outline should include key slides/topics within each major section. Typical sections might include: 1. **Introduction & Situation Overview:** Banker introductions, understanding of client objectives, current market context. 2. **Company/Client Overview (if applicable):** Key strengths, financial highlights, management team. 3. **Market & Industry Analysis:** Trends, competitive landscape, growth drivers, potential challenges. 4. **Strategic Rationale / Transaction Rationale:** Why this deal/transaction makes sense now. Benefits for the client. 5. **Valuation Analysis (if applicable):** Summary of valuation methodologies (Comps, Precedents, DCF, LBO), indicative valuation range. 6. **Potential Buyers/Targets (if M&A):** List of potential strategic and financial buyers/targets with rationale. 7. **Process & Timeline:** Key steps involved in the transaction, estimated timeline. 8. **Investment Banking Team & Credentials:** Team bios, relevant transaction experience (tombstones), firm overview. 9. **Appendix:** Detailed financials, assumptions, supporting data. 10. **Summary & Next Steps:** Recap of proposal, call to action. Tailor the emphasis and specific slides based on the [Specify Type] of pitchbook mentioned above."

{ "prompt": { "prompt": "Generate a structured list of key inputs and assumptions required to build a Leveraged Buyout (LBO) model for evaluating the potential acquisition of [Target Company Name] by a private equity sponsor. Categorize inputs logically (e.g., Transaction, Financing, Operating, Exit). For each key input, briefly explain its significance in driving model outputs (e.g., IRR, MOIC) and suggest common sources or estimation methods (e.g., market research, management projections, financing term sheets, due diligence findings).", "role": "investment banking analyst/associate", "department": "Leveraged Finance / Private Equity / M&A", "task": "Define LBO Model Assumptions Framework", "task_description": "As an investment banking professional, structure the necessary inputs for building a robust LBO model. This framework should guide junior analysts in gathering data and understanding the model's key drivers for a potential PE transaction.", "categories_and_inputs_examples": { "1_Transaction_Assumptions": ["Entry Multiple/Purchase Price", "Transaction Fees", "Sources & Uses of Funds"], "2_Financing_Assumptions": ["Debt Tranches (e.g., Revolver, Term Loan B, Senior Notes)", "Interest Rates (Fixed/Floating + Spread)", "Amortization Schedules", "Upfront Fees", "Leverage Levels (e.g., Debt/EBITDA)", "Cash Sweep Mechanism"], "3_Operating_Assumptions": ["Revenue Growth Rate", "Gross Margin %", "SG&A Expenses (% of Revenue or Growth Rate)", "Capital Expenditures (% of Revenue or Growth Rate)", "Net Working Capital Assumptions (e.g., DSO, DIO, DPO)", "Tax Rate"], "4_Exit_Assumptions": ["Exit Multiple (e.g., LTM EBITDA)", "Exit Year", "Assumed Debt Paydown by Exit"] }, "rules": { "1": "Categorize inputs logically and clearly.", "2": "Define each significant input/assumption.", "3": "Explain the importance/impact of each input on key LBO metrics (IRR, MOIC).", "4": "Suggest typical data sources or estimation methods for each input.", "5": "Output should be formatted as a clear, structured list or table." }, "key_references": { "1": "Standard LBO modeling best practices", "2": "Indicative Financing Term Sheets", "3": "Management Projections & Business Plan", "4": "Due Diligence Reports (Financial, Commercial)", "5": "Market Comparable Data (Entry/Exit Multiples)" } } }

"Act as an ECM (Equity Capital Markets) banker advising a private company, [Company Name], operating in the [Specify Industry] sector, on its potential Initial Public Offering (IPO). Create a comprehensive IPO readiness assessment checklist covering key areas the company must address: 1. **Financial Readiness:** * Audit Requirements (PCAOB standards, 2-3 years audited financials). * Predictability of revenue and earnings. * Robust financial reporting processes and internal controls (SOX compliance considerations). * Need for a strong CFO and finance team. 2. **Business & Strategy:** * Clear growth strategy and compelling equity story. * Sustainable competitive advantages. * Market size and opportunity. * Scalability of the business model. 3. **Management & Governance:** * Experienced management team capable of running a public company. * Independent board members required. * Establishment of board committees (Audit, Compensation, Nominating/Governance). * Public company governance policies. 4. **Legal & Compliance:** * Review of corporate structure. * Due diligence on contracts, litigation, IP. * Registration statement (S-1) drafting process. * Compliance with securities laws (SEC regulations). 5. **Process & Team:** * Selection of underwriters, legal counsel, auditors. * Development of investor relations (IR) function. * Internal preparation and project management. * Roadshow planning and execution. 6. **Post-IPO Considerations:** * Quarterly reporting obligations. * Analyst coverage and investor communication. * Lock-up periods. * Market volatility impact. For each area, list specific questions the company should ask itself or key actions it needs to take."