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Experience Two - Morgan Stanley

Garrett Wolfe ‘20 – Investment Banking 2019 Summer Analyst: Technology Coverage Group

Public Information Booklet

A frequent ask from my co-workers when I was staffed on a new account was to create a Public Information Booklet, also known as a PIB.

A PIB is an introductory document on a public company that is typically comprised of the following:

Business section of the company’s 10K

Most recent quarter’s earning call transcript

Most recent quarter’s earnings presentation

Initiating coverage or equity research on the company

5-10 recent and relevant press releases on the company

Financial Presentation

During my summer I assisted in creating a financial presentation to present to potential investors for a company we were representing

We presented relevant tech statistics and calculations for our client company based on the historical and projected financials in a model provided by the client.

From things as simple (and seemingly arbitrary) as aligning logos and text boxes to curating bar charts and graphs, this presentation would allow us t generate investor interest in our client.

Financial stats we may have chosen to show(YoY,

QoQ

) include:

Quarterly / yearly revenue

Operating expenses (such as sales & marketing, research & development, and

g&a

)

As a % of revenue

Customer Acquisition Cost

and many more

Comparable Company’s Analysis

Another common task during my time at MS was creating an excel document that compared common financial statistics between “comparable” companies

This was done in the form of regression analyses and benchmarking on metrics such as Enterprise Value multiples (EV/Revenue, EV/EBITDA, EV/EBIT), Income Metrics (Revenue, Gross Profit, EBITDA, EBIT, Net Income), and ratios/growth metrics

Companies that are deemed similar are placed into “buckets” or groups where they can be compared collectively to the company of interest

i.e. my up and coming lemonade stand can be compared to other lemonade stands (bucket 1), beverage companies such as Pepsi and Coke (bucket 2), healthy drink companies (bucket 3), and consumer retail brands (bucket 4)

Discounted Cash Flow Analysis

Another heavily quantitative part of my job was based in valuing a company through a discounted cash flow

This is done by using the historical cash flows and modeling future cash flows based on management’s projections/assumptions in order to arrive at a valuation for a company.

One of the analysts built a model and I was tasked to take it over and update throughout the course of the summer

Miscellaneous

Some other interesting things I got to experience was multiple meetings with the CEO and CFO of an rising technology company

Customer calls with customers of a software company looking to raise money

Worked on updating deal database with public and private information surrounding a deal’s execution

Research and due diligence on multiple public and private companies

Built slides and presentation decks for client meetings to introduce a new client to Morgan Stanley Tech IBD

Thanks

Thanks so much for reading about my journey!

For questions or comments reach out to

garrett.a.wolfe@duke.edu