IB Industry Primers for Analysts (Prep Checklist)

An investment-banking industry primer is a sourced briefing that helps a deal team understand a market, its companies, economics, risks, and valuation context. Start by defining the scope and decision, then gather dated filings and market data, test comparability, and explain what the evidence means. Use a checklist to make the work traceable, balanced, and ready for review.

If you are preparing for an analyst role or building a primer for a live assignment, the challenge is not finding information. It is deciding which information is reliable, comparable, and useful to the reader. A U.S. market primer may draw on SEC filings, Census Bureau data, BEA statistics, and FRED series. If the industry is global, say so, and explain when U.S. data cannot represent the full market.

I treat a primer as a decision tool, not a collection of facts. A deal team may need to understand market growth, a company’s position, or the risks behind a valuation. Your scope and evidence should reflect that need. The checklist below gives you a repeatable path from research question to reviewed document.

Industry Overview, Market Structure & Key Drivers

This section defines what the industry includes, where it operates, and how it may be changing. A clear boundary prevents you from mixing unlike markets. The overview should connect demand, supply, and outside forces to the decision the primer must support, while making clear which claims are reported facts and which are estimates.

Define the scope before researching

Write a short scope statement before opening a data terminal or search engine. Include:

• Industry and subsectors covered, plus activities excluded
• Geography, such as the United States, North America, or a named global region
• Audience and purpose, such as client preparation, transaction screening, or valuation context
• Analysis date and the period covered by the research

A label such as “healthcare” is too broad to guide research. A narrower boundary, such as U.S. outpatient imaging providers, tells you which companies and measures may be relevant. It also gives reviewers a way to challenge the boundary.

Build a source log

A source log records where each important fact came from and how to find it again. For company disclosures, begin with SEC EDGAR filings. Record the company, form, filing date, reporting period, section or page, units, and the fact used. A 10-K filing date is not the same as the fiscal year it reports.

For market information, look for the originating dataset where possible. Census Bureau, BEA, and FRED are examples of U.S. sources, but they measure different things. Record geography, units, dates, and definitions. If you use a third-party estimate, identify the provider, publication date, stated method, and limits. Do not treat an estimate as a reported fact.

A practical source-log entry might look like this:

Explain market size and growth

Define the market measure before presenting a number. Revenue, unit shipments, installed capacity, and customer count are different measures; they are not interchangeable. State the source, geography, period, units, and calculation behind each material market-size or growth claim.

For example, if growth is calculated from two reported market values, show the start and end periods and the formula used. If the values are forecasts, label them as forecasts and name the source. When different providers use different market boundaries, show the definitions rather than blending their figures into one series.

Next step: Draft a one-paragraph scope and a source log before writing the industry narrative.

Business Models, Industry Economics & Operating Metrics

This section explains how companies in the industry earn revenue and what drives their costs and returns. An operating metric is a measure tied to business activity, such as customer churn or capacity use. Choose metrics that match the business model, define each one, and check whether companies calculate it in the same way.

Map how companies make money

Describe the product or service, customer, payment method, and main cost base. A company may sell equipment once, charge a recurring subscription, earn a fee per transaction, or combine models. Those differences affect revenue timing, cash needs, and useful peer comparisons.

Avoid treating a company’s description of its strategy as proof of industry-wide economics. Use filings to identify reported segments, revenue sources, and risks. Then separate company-specific facts from your broader interpretation.

Choose metrics with care

Select a small set of measures that helps explain performance. Depending on the industry, these could include volume, price, retention, utilization, capacity, backlog, or gross margin. Define the metric and its unit. Check whether reported figures are audited, company-defined, or calculated by you.

These are starting points, not universal standards. Use metrics only when the filings or a credible dataset support them. If a company changes a definition, note the change and avoid presenting the series as fully comparable without adjustment.

Build a five-year view where possible

A five-fiscal-year history can help show direction, but it is a recommended analyst-work standard, not a universal banking rule. Use the available period when shorter history, a new reporting segment, or a major business change limits comparison. Label gaps rather than filling them with guesses.

Check fiscal year-ends, currency, units, acquisitions, divestitures, and restatements. A calendar-year chart may hide different company reporting periods. If you convert periods or currencies, state the method and keep the original reported figures available for review.

Next step: Build a metric table with definitions and reporting periods before drawing conclusions about growth or margins.

Competitive Landscape, Risks & Analyst Assessment

This section compares the companies that matter and identifies forces that may change their prospects. A peer set is a group selected for a specific comparison; it is not simply a list of familiar names. Explain why each company belongs, why others do not, and where differences limit a direct comparison.

Select and test the peer set

Use three to five relevant public-company peers as a practical starting point, not a fixed industry rule. Select companies based on business mix, customers, geography, scale, and economics. A company can be relevant without being a perfect match; name the gap.

For each selected peer, record its inclusion rationale and any major difference. Explain exclusions too, especially when a large company might appear relevant but operates in a different market or has a very different revenue mix. This makes the comparison easier to assess and update.

Assess competition and risk

Describe how firms compete: price, product features, service, distribution, scale, switching costs, or access to supply. Support specific claims with filings or credible industry data. Be careful with broad statements such as “high barriers to entry.” Identify the barrier and the evidence for it.

Separate known risks from your assessment of their effects. Company filings can identify risks management considers material, but they do not prove how likely each risk is. Consider regulation, customer concentration, supply constraints, technology shifts, and cyclicality only when they fit the industry and evidence.

Illustrative review scenario

Consider a fictional analyst comparing three public companies in a U.S. equipment market. One company earns most revenue from equipment sales, another has a large service business, and the third operates mainly outside the United States. These companies may help explain the landscape, but their margins and growth rates do not form a clean peer comparison without context.

The analyst records each company’s segment mix, fiscal year, geography, and filing date. They present the three-company set as illustrative, flag the service and geography differences, and avoid claiming that the sample represents the whole market. This is a worked example, not a claim about actual companies or results.

Next step: Write a short peer rationale and risk note before using the group for valuation.

Valuation Context, Transactions & Career-Relevant Applications

This section links industry evidence to valuation and transaction work without overstating what the data can show. A valuation multiple compares a company’s value with a financial measure, such as earnings or sales. It is useful only when the measure, period, and company basis are clear and the comparison has a reason.

Present valuation evidence with limits

State the date, source, currency, and calculation for every material valuation measure. Identify whether the input is reported or estimated and whether the measure is historical or forward-looking. Do not compare multiples built on different earnings periods or definitions without explaining the difference.

If you include transactions, record the announced date, buyer, target, stated consideration, and source. Distinguish announced terms from completed transactions, and avoid implying that one deal sets a market-wide price. Transaction data may be incomplete, and public disclosures may not include every term.

Turn research into a useful work product

Organize the primer so a banker can find the answer quickly: key takeaways, industry boundaries, market evidence, business models, competitors, risks, and valuation or transaction context. Put source notes close to the claims they support. A chart should state units, period, and source; a footnote should not force the reader to guess what the chart measures.

Before delivery, ask a reviewer to test the logic and trace material claims to their sources. Set a refresh trigger, such as a new company filing, a major transaction, a material regulatory change, or a new data release. Keep prior versions or a change log so the team can see what changed and why.

Checklist before sending:

• Scope, geography, purpose, and analysis date are stated.
• Material claims have a source, date, period, units, and method.
• Company facts and analyst estimates are clearly separated.
• Fiscal periods, currencies, definitions, and restatements are checked.
• Peer inclusion and exclusions are explained.
• Data gaps and uncertainty are visible.
• A reviewer can reproduce key calculations.

How this work supports analyst development

A well-built primer shows skills used in analyst work: structured research, careful spreadsheet checks, concise writing, and clear judgment about evidence. It can also support interview discussions, but it should not replace technical preparation or deal experience. Be ready to explain where a number came from, what it measures, and what could make your conclusion wrong.

Next step: Save the source log and calculation files with the final document, then agree on who owns each update.

Frequently Asked Questions

These answers address common questions that arise while building an industry primer. They focus on practical standards, not formal rules: the right approach depends on the assignment, available evidence, and review process. When a number or comparison is uncertain, state the reason and show the reader what you could verify.

How long should an industry primer be?

How many companies should I include?

Three to five relevant public peers is a useful starting point, not a fixed rule. Explain the selection criteria, differences, and exclusions. A smaller or larger set may fit the industry better.

Do I need five years of company data?

Use at least five fiscal years when history is available and comparable. If a company has less history or its business changed, show the available period and label the limitation.

Which sources should I use first?

Use SEC EDGAR for U.S. public-company filings. For market data, seek the original government or industry dataset where available. Record the source, date, geography, units, and method.

Can I use a market research vendor’s estimate?

Yes, if it is relevant and its basis is clear. Record the provider, date, market definition, geography, and stated method. Label the figure as an estimate, and compare it with other evidence when possible.

How do I handle conflicting market-size figures?

First compare definitions, geography, periods, and units. Different figures may measure different markets. Do not average them without a sound reason; explain the difference and state which measure best fits the primer’s scope.

Should I include forecasts?

Include forecasts when they help answer the assignment. Name the source, forecast period, assumptions if disclosed, and uncertainty. Keep forecast values separate from reported historical data.

What should I do when companies use different metrics?

Show each company’s definition and avoid direct comparison if the measures do not match. You may calculate a common measure from disclosed data, but show the formula and any missing inputs.

When should I refresh the primer?

Refresh it after a material filing, major transaction, regulatory change, or important data release. Also state the analysis date so readers know how current the evidence is.

How can I make the primer easy to review?

Put sources near claims, define units and periods, preserve calculation files, and flag estimates and gaps. Ask a reviewer to trace key figures back to their original sources before delivery.

(This article was written by one of our staff writers, James Holloway. Visit our Meet the Team page.)