What Is a Company Profile and How Do You Create One in Investment Banking?

Maybe it’s a bit jaded of me, but I think of company profiles the same way I think of Wikipedia entries – a hodgepodge of basic-as-Ben-Stiller information that’s not particularly interesting, but always necessary to have on hold.

The reason we create company profiles in investment banking is for use when analyzing the competitive landscape of our client company’s industry and for using in presentations to the client about possible deals (who can they buy, who can buy them, who to watch out for).

Company profiles also help us keep tabs on who’s doing what and where each player fits in – very CIAish I know.

What does a company profile literally consist of?

It depends on what it’s being used for.

In say a basic ‘Market Update’ PowerPoint presentation going out to a client, each company profile (of the client’s competitors/suppliers/customers etc) may only be a one slide summary with a 3 sentence description, 5 numbers/multiples, recent news etc – this super succinct form occurs when say 5-15 competitors are being profiled at once in a basic presentation.

In it’s longer form, say if you were detailing every potential acquisition target in a formal pitch book (!), a company profile could include several slides that straddle everything from historical financials to extensive qualitative descriptions of the company’s revenue streams to detailed analysis of specific parts of the company (to suit the immediate usage requirements).

In this form the company profile gets heavy and moves beyond the realm of mere Wikipedia copycat!

Because company profiles are often merely a collection of simple information scattered beautifully across a few slides, they’re considered Intern Level Work and will probably be one of the first things your analyst-mentor will palm off to you come summer. As you can see from the above, you don’t need a 3.8 GPA from Stanford to pull these off.

How should you go about prepping for company profiles?

When you get into the bank flick read through a couple past examples, internalize the language, structure, components, and metrics used, and quite soon you’ll know how to create company profiles without even referencing precedent samples.

The first thing you will notice when reading past examples is how tranquilizer-esque they are; they’ll put you to sleep in an instant.

The data, the language, the facts, the summary – it’s all so common knowledge and BS sounding. But your job is not to win a freaking Excel or creative writing competition so don’t try to break with convention and pen some Charles Dicken prose or engineer some insanely original multiples when you’re asked to give it a go.

Instead play it safe and create company profiles that blend in, not stand out

If you want to impress bankers here then all you need to do is present with extreme succinctness – super industrious language paired with only the really important numbers/graphs etc will wow bankers since it saves them time and hides the “who cares” details.

Some students think they need to find interesting facts and figures about the company that aren’t readily accessible via a company search on some half-rate intelligence database to impress here.

But trust me when I say finding uber original info like this is time consuming and really not expected – and when you’ve had 2 hours sleep in 2 days why would you get all sadomasochistic on yourself with some freaking primary research?

That said, you can’t create all your company profiles by simply grabbing text from a database search, or (and yes this is very common) copy-pasting a Wikipedia entry on the company or text from the company’s own website!!

Instead you need to write from scratch using the tone/type of language and exact structure you see in the banks existing company profiles, and with the type of conciseness you see in these; as well as drawing your figures and numbers directly from the original sources and condensing them into their most essential and insightful form (just like with spreading comps – which we talk about below).

ie you have to summarize the summarizers, but do it accurately and in a client friendly way.

As an investment banking intern you’ll probably more often than not be asked to simply update or double-check existing company profiles.

This can really suck if the intern or first year banking analyst who made the existing profiles did an awful job on them, because bankers will expect a mere ‘update’ to take you no time at all, and yet you’ll almost be making profiles from scratch!!

Although you are all bright eyed and bushy tailed now, don’t be disheartened if you make dozens of company profiles and they never get read – such is the nature of them. ie banks will want profiles on hand for ‘just in case’ a client requests them, or a deal takes heat.

If you have an investment banking internship coming up or are starting your analyst program soon you should check out the most common tasks junior bankers perform. In this article we list the top 39 and explain the what/why/how so you can get a flying head start.

Is Your Company Ready For Industry 4.0 Transformation?

What is Industry 4.0?

Industry 4.0 is the 4th industrial revolution. To give a little history, industries used steam to make the machine work which increased production and reduced cost in the industrial revolution. The next phase of the revolution was the mass production with implementing electricity and assembly lines. The third revolution introduced automation and computers. We are now here in the fourth revolution through digitizing and networking where we can connect the digital world with the physical world.

With hassle free wireless networking you educate the machine. Earlier the intelligence lied with the humans and machines just helped with the physical work, but now we can educate the machine and the products itself, also get a virtual image. Using Internet of Things (IOT) you can connect all the physical machines with software, networks and censors and they would exchange data with each other making human life and production much more simpler.

How many hours have you spent to hire a mechanic because your machine stopped working and the mechanic failed to understand what went wrong with the machine? With Industry 4.0, the machine will tell you what part has been failed and what has to be replaced. With artificial intelligence, it also tells you which spare parts need to be fixed.

Why Transform to Industry 4.0?

The Cyber ​​Physical systems enable your product to communicate with your machine. Your product will instruct the machine as to the quantity and the type of product that needs to be produced, and the machine is then produces and labels the products. After detecting the product, you can never go wrong with packaging, also your quality check has been performed by the machine while packaging itself.

Industry 4.0 allows you to have a flexible manufacturing process that will better react to customer demands. This new manufacturing technology reduces your cost of production, cost of wastage, reduces errors, increases efficiency due to use of robotics, yields higher revenue, improves customer service and increases innovation. It also allows you to create a virtual image of the real world using 3D printers and help you test your product and know your contingencies beforehand which would allow you to change the process in order to avoid the contingency before you even start your production.

You don't need to manually check your stock. You can add a censor to your forklift and your products, and while stacking up your goods, you get the data of the quality, description, weights and dimension as well as the location of the product. This would immensely reduce errors and damages.

Feed your machines, knowledge of automated systems with this new manufacturing trend and let them communicate with each other while you see your profits rise up high and costs go low.