An LBO pitch is very similar to a stock pitch, in which it entails talking about your thought process and what you believe makes a good company. You can speak about how it meets the fund’s investment parameters, as well as its stable and recurring cash flows, being a market leader in a defensible niche, opportunities for margin improvement, strong asset base, and other characteristics that will make it a food LBO target. Present these points and also touch on the valuation that makes sense and the debt structure you would use and why. It would also be valuable to speak about any risks you see and how you plan to mitigate them, as well as any areas you would due diligence.
A general structure for an LBO pitch would be:
- Deal and company overview
- Industry overview
- Investment highlights
- Risks and mitigants
- Areas to due diligence further