You are standing at an elevator, waiting. The person you want to pitch your short-term financing proposal to walks up and stands beside you. You introduce yourself and say that you are getting ready to pitch them. They give you the Oh-and-why-should-I-pay-attention-to-you? Look.
The elevator doors open and you both enter. You have about 45 seconds to capture their attention and give them a set of reasons to pay attention.
This is called an elevator pitch and you must, at all times, be ready to give it. The EP must, in as few words as possible:
1. Summarize what you are doing
2. Cover key financial figures
3. Cover your experience/capabilities
4. Detail key risks
5. Detail risk management strategies
6. Include “The Ask”
For your individual presentation, you will do an EP in front of the class.
Tips:
1. Pick a Canadian-based company on which you can get the information required for the EP
2. Pick a transaction that the company has done before
Rules:
1. The company must be involved in international trade or investment
2. The opportunity must relate to international trade and investment
3. The transaction must be short-term not medium or long-term.
Risk:
Level of Indebtedness and Liquidity Risk To fund the cash portion of the Shopper’s Drug Mart acquisition, the Company will utilize excess cash and significantly increase its indebtedness. There can be no assurances that the Company will generate sufficient free cash flow to reduce indebtedness and maintain adequate cash reserves which could result in adverse consequences on its credit ratings and its cost of funding.
Liquidity risk is the risk that the Company cannot meet its demand for cash or fund its obligations as they come due. Liquidity risk also includes the risk of not being able to liquidate assets in a timely manner at a reasonable price. Liquidity risk is mitigated by maintaining appropriate levels of cash and cash equivalents and short term investments, actively monitoring market