Rosenbaum / Pearl Investment Banking Focus Notes

2. Auflage 2013
ISBN: 978-1-118-71093-7
Verlag: John Wiley & Sons
Format: EPUB
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 320 Seiten, E-Book

Reihe: Wiley Finance Editions

Investment Banking FOCUS NOTES provides acomprehensive, yet streamlined, review of the basic skills andconcepts discussed in Investment Banking: Valuation,Leveraged Buyouts, and Mergers & Acquisitions, SecondEdition. The focus notes are designed for use both as acompanion to the book, as well as on a standalone basis.Investment Banking focuses on the primary valuationmethodologies currently used on Wall Street--namely,comparable companies analysis, precedent transactions analysis, DCFanalysis, and LBO analysis--as well as detailed M&Aanalysis from both a sell-side and buy-side perspective. Our focusnotes seek to help solidify knowledge of these core financialtopics as true mastery must be tested, honed, and retested overtime.

Autoren/Hrsg.

Rosenbaum, Joshua

Pearl, Joshua

Inhaltsverzeichnis

About the Authors vii
Introduction viii
Chapter 1: Comparable Companies Analysis 1
Overview of Comparable Companies Analysis 3
Step I: Select the Universe of Comparable Companies 4
Step II: Locate the Necessary Financial Information 7
Step III: Spread Key Statistics, Ratios, and Trading Multiples 9
Step IV: Benchmark the Comparable Companies 27
Step V: Determine Valuation 33
Key Pros and Cons 38
Chapter 2: Precedent Transactions Analysis 39
Overview of Precedent Transactions Analysis 41
Step I. Select the Universe of Comparable Acquisitions 42
Step II. Locate the Necessary Deal-Related and Financial Information 46
Step III. Spread Key Statistics, Ratios, and Transaction Multiples 49
Step IV. Benchmark the Comparable Acquisitions 64
Step V. Determine Valuation 66
Key Pros and Cons 67
Chapter 3: Discounted Cash Flow Analysis 69
Overview of Discounted Cash Flow Analysis 71
Step I. Study the Target and Determine Key Performance Drivers 73
Step II. Project Free Cash Flow 75
Step III. Calculate Weighted Average Cost of Capital 91
Step IV. Determine Terminal Value 106
Step V. Calculate Present Value and Determine Valuation 112
Key Pros and Cons 118
Chapter 4: Leveraged Buyouts 119
Overview of Leveraged Buyouts 121
Key Participants 122
Characteristics of a Strong LBO Candidate 127
Economics of LBOs 132
Organization and Preparation 209
First Round 218
Second Round 229
Negotiations 236
Closing 241
Negotiated Sale 246
Chapter 7: Buy-Side M&A 247
Overview of Buy-Side M&A 248
Buyer Motivation 250
Acquisition Strategies 254
Form of Financing 259
Deal Structure 264
Buy-Side Valuation 273
Merger Consequences Analysis 278
Index 295

Über Autor(innen)

Joshua Rosenbaum is a Managing Director at UBS InvestmentBank in the Global Industrial Group. He originates, structures, andadvises on M&A, corporate finance, and capital marketstransactions. Previously, he worked at the International FinanceCorporation, the direct investment division of the World Bank. Hereceived his AB from Harvard and his MBA with Baker Scholar honorsfrom Harvard Business School.
Joshua Pearl is an investment analyst at Brahman CapitalCorp. Previously, he structured and executed leveraged loan andhigh yield bond financings, as well as leveraged buyouts andrestructurings as a Director at UBS Investment Bank in LeveragedFinance. Prior to UBS, he worked at Moelis & Company andDeutsche Bank. He received his BS in Business from IndianaUniversity's Kelley School of Business.