IPA - Driving Business Results through Effective Information Memoranda v1.pptx

IM for Insolvency Professionals

1. Driving Business Results through Effective Information Memoranda Gopalan Narasimhan www.BumblebeeAcademy.in

2. High Impact Communication and Presentation

3. Session Objectives

4. What is the Main Purpose of IM?

5. Why IM? Bumblebee Leadership Academy 5

6. Purpose for IM and IM Presentations

7. Core Elements of Effective Communication

8. Key Presentation Challenges Crossing the Chasm From Delivering Content Presenter Perspective Death by PPT Information Overload Inadequate Presence To Outcome Driven Empathic /Audience Centric Engaging - Emotional & Visual Structured Content Delivered with Impact Executive Presence & Gravitas 8

9. Main Purpose of IM

10. Purpose of IM

11. IM’s importance in insolvency resolution.

12. Components of IM

13. Key Elements of the Information Memorandum Definition, regulatory requirements, key components (company overview, financials, claims, assets, etc.) Discuss how IM drives business results by providing transparency and confidence to stakeholders. Definition and purpose Regulatory context under Insolvency and Bankruptcy Code

14. Key Components of IM Corporate debtor details Financials, claims, assets, liabilities Business operations and market overview

15. K ey elements to include in an IM Executive Summary: A high-level overview summarizing the essence of the business, key selling points, and the purpose of the transaction 1 5 6 . Company Overview: Brief history, background, ownership details, mission, vision, and core activities of the company 5 6 7 . Products and Services: Clear description of what the company sells or the services it provides, ideally broken down by product/service types and profitability trends 2 5 6 . Market Analysis: Description of the market in which the business operates, including size, growth trends, competitive landscape, and strategic positioning 2 3 5 6 . Operations: Details on how the company operates, including supply chain, production, distribution, premises (owned or leased), and quality management 2 5 . Management Team and Employees: Overview of key personnel, organizational structure, employee contracts, and management depth to indicate stability and capability 2 5 6 . Customers and Sales: Information on customer base, key clients, customer concentration, recurring contracts, and sales and marketing strategies 2 5 6 . Financial Overview: Historic financial performance including revenue, EBITDA, profit and loss statements, balance sheet, cash flow, current trading performance, and financial projections 1 2 5 6 . Investment Highlights and Transaction Scope: Reasons for raising capital or selling, amount to be raised, use of funds, stake available, valuation, and terms of sale 4 5 . Legal Structure and Disclosures: Description of the company’s legal entity, relevant legal considerations, and necessary disclaimers 5 . Future Outlook and Strategy: Discussion of growth strategies, market trends, long- and short-term goals, and business projections

16. K ey elements to include in an IM

17. K ey elements to include in an IM

18. Analysing the Components of IM

19. Designing an Engaging IM

20. Make it simple to comprehend Clarity is essential. It’s critical to take your time and speak in a manner investors can comprehend. Their primary objective is to grasp the possibility and develop a business plan. If you use jargon in your investment memoranda, you risk attracting the wrong attention. Keep things simple; don’t throw folks off by making things too complicated.

21. Optimize the layout Include a summary of the firm and the market. An overview of your products and services, competitive analysis, your target audience, and your financial model should be included. Use graphs and charts to concisely communicate essential information while making your investment memorandum. More aesthetically appealing. This is very beneficial when dealing with financial data. Using a bar chart to share sales growth, for example, emphasizes how quickly you’ve expanded and is simpler to read than a standard table.

22. Be transparent and upfront about the risk Nobody enjoys being surprised. As a result, rather than the fund discovering risks during due diligence, set them out in your investment memorandum early on.

23. Include the investment’s terms Outlining the financial project’s goals is an intelligent thing to undertake. Determine if the funds will be utilized for expansion, acquisitions, or working capital.

24. Make sure your financials are in order This is the most crucial aspect since it is the key to receiving high-level term sheet offers. You must supply a complete financial statement that contains the following information: -Gross revenue -Flows of funds -Revenue -Profit and Loss Statements -EBITDA -Margins Use statistics from the previous years and an estimate for the following five. This allows potential investors to run their numbers and see if you’re a reasonable risk. Be as specific as possible.

25. Principles of visual appeal Clarity, simplicity, and consistency Use of charts, graphs, and infographics to present financial data and business highlights Clean layout, readable fonts, consistent colors

26. Visual Appeal and Engaging through Innovative Approaches

27. Use of Icons, Hyperlinks and Progress Bars

28. Financial Data - Tabular Format Quarter Revenue (₹ Cr) Profit (₹ Cr) YoY Growth (%) Q1 120 25 5% Q2 135 30 12.5% Q3 150 35 15% Q4 165 38 8.6% Converting Tables into Graphs

29. Quarterly Revenue and Profit Quarter Revenue (₹ Cr) Profit (₹ Cr) Q1 120 25 Q2 135 30 Q3 150 35 Q4 165 38 📌 Highlight: Q3 Peak

30. YoY Growth Comparison Product YoY Growth (%) Product A 10.5 Product B 12.3 Product C 8.9 Product D 15.2 📌 Highlight: Product D - Highest

31. Converting Tables into Graphs

32. Highlighting Insights in Graphs • Highlight Q3 with a different color (e.g., gold or red) • Add data callouts: 'Q3 Profit: ₹35 Cr – Highest in FY 2024' • Use shading or arrows to guide audience attention

33. Pie Chart: Revenue Share by Region 📝 Explanation: This pie chart visualizes the revenue contribution by region. It’s ideal for showing part-to-whole relationships. 💡 Tip: Use labels and percentages directly on slices to avoid legend overload.

34. Bubble Chart: Product Comparison (Sales vs Profit with Volume) 📝 Explanation: This bubble chart compares products by sales (X-axis), profit (Y-axis), and volume (bubble size). 💡 Tip: Highlight large-volume products or those with low profit margins using annotations.

35. Radar Chart: Department Performance Metrics 📝 Explanation: The radar chart compares department performance across multiple dimensions like innovation, compliance, and quality. 💡 Tip: Use radar charts to benchmark teams or visualize balanced/unbalanced capabilities.

36. Best Practices for Financial Data Visualization ✅ Use consistent scales and formats ✅ Limit chart types on one slide (1-2 max) ✅ Highlight key insights with colors, annotations, or zoom-ins ✅ Keep legends clear and minimal

37. Best Fit Graph and Chart

38. Comparing the revenue growth of three competing companies over the past 5 years. A) Pie Chart B) Line Graph C) Scatter Plot D) Bubble chart

39. Showing the percentage breakdown of a company’s revenue by business segment (e.g., Product A: 40%, Product B: 30%, Services: 30%). A) Pie Chart B) Waterfall Chart C) Histogram D) Bubble Chart

40. Illustrating the step-by-step impact of different factors on a company’s net profit (e.g., starting revenue, cost adjustments, tax effects, final profit). A) Waterfall Chart B) Scatter Plot C) Stacked Area Chart D) Heatmap

41. Comparing the quarterly EBITDA margins of a company across four regions (North America, Europe, Asia, Latin America). A) Stacked Bar Chart B) Radar Chart C) Box-and-Whisker Plot D) Clustered Column Chart

42. Displaying the correlation between a company’s R&D spending and its revenue growth over 10 years. A) Bubble Chart B) Scatter Plot C) Gantt Chart D) Treemap

43. Showing the relative market share of the top 5 players in an industry. A) Stacked Area Chart B) Treemap C) Bar Chart (Horizontal) D) Radar Chart

44. Displaying the timeline of key milestones in a company’s projected growth plan. A) Gantt Chart B) Scatter Plot C) Histogram D) Candlestick Chart

45. Visual Deal Teasers Create a slide with: A “Deal at a Glance” snapshot (Valuation, Ticket Size, Use of Funds) Icons, timelines, and callouts instead of paragraph text

46. Use “What Investors Want to Know” Slide Anticipate and address: Risks and mitigation Competitive advantags

47. Design Techniques for Impact Use full-screen visuals instead of boxed charts Color code growth vs cost themes Introduce whiteboard sketch visuals for business models Brand colors subtly infused (especially on financials & exits)

48. Storytelling and Business Narrative

49. Storytelling and Business Narrative Crafting a compelling story arc around the debtor’s business journey, challenges, and resolution potential to engage investors

50. Storytelling in IM Narrative structure: challenge, journey, resolution Humanizing data for impact

51. Example IM Excerpts Before and after visual redesign Highlighting key investment points

52. Quiz

53. What is the primary purpose of an Information Memorandum in insolvency proceedings?

54. How can an Information Memorandum drive better business results? A) By providing a lot of information to stakeholders and potential investors B) By providing transparency and building investor confidence using relevant information C) By hiding liabilities D) By focusing only on past performance

55. Why is visual appeal important in an Information Memorandum? A) It makes the document longer B) It helps stakeholders quickly understand complex information C) It replaces the need for detailed data D) It is required by law

56. Which of the following is NOT typically included in an Information Memorandum?

57. Which storytelling element is most effective in making an IM engaging? A) Listing only numbers and facts B) Presenting the debtor’s business challenges and resolution journey C) Using technical jargon extensively D) Avoiding any narrative to keep it formal