Investment Banking Workbook 500+ Problem Solving Exercises & Multiple Choice Questions

by Unknown

• ISBN13: 9781119776796
• ISBN10: 1119776791
• Edition: 3rd
• Format: Hardcover
• Copyright: 2021-03-16
• Publisher: Wiley

Summary

The ideal companion to Investment Banking

Investment Banking WORKBOOK is the ideal complement to Investment Banking: Valuation, LBOs, M&A, and IPOs, Third Edition—enabling you to truly master and refine the core skills at the center of the world of finance. This comprehensive study guide provides an invaluable opportunity to explore your understanding of the strategies and techniques covered in the main text before putting them to work in real-world situations.

The WORKBOOK, which parallels the main book chapter by chapter, contains over 500 problem-solving exercises and multiple-choice questions.

Topics reviewed include:

– Valuation and its various forms of analysis, including comparable companies, precedent transactions, and DCF analysis
–Leveraged buyouts—from the fundamentals of LBO economics and structure to detailed modeling and valuation
–M&A sell-side tools and techniques, including an overview of an organized M&A sale process
–M&A buy-side strategy and analysis, including a comprehensive merger consequences analysis that includes accretion/dilution and balance sheet effects
–IPOs, including valuation, structure, and process, as well as SPACs and direct listings

The lessons found within will help you successfully navigate the dynamic world of investment banking, LBOs, M&A, IPOs, and professional investing. Investment Banking WORKBOOK will enable you to take your learning to the next level in terms of understanding and applying the critical financial tools necessary to be an effective finance professional.

Author Biography

Joshua Rosenbaum is a Managing Director and Head of the Industrials & Diversified Services Group at RBC Capital Markets, where he also serves on the Management Committee for the U.S. Investment Bank. He originates, structures, and advises on M&A, corporate finance, and capital markets transactions. Previously, he worked at UBS Investment Bank and the International Finance Corporation, the direct investment division of the World Bank. He received his AB from Harvard and his MBA with Baker Scholar honors from Harvard Business School. He is also the co-author of Investment Banking: Valuation, LBOs, M&A, and IPOs and The Little Book of Investing Like the Pros.

Joshua Pearl is the Founder and Chief Investment Officer of Hickory Lane Capital Management, a long/short equity asset manager. He focuses on equity investments and special situations utilizing a fundamentals-based approach. From 2011-2020, he served as a Managing Director and Partner at Brahman Capital. Previously, he structured high yield financings, leveraged buyouts, and restructurings as a Director at UBS Investment Bank. Prior to UBS, he was an investment banker at Moelis & Company and Deutsche Bank. He received his BS in Business from Indiana University’s Kelley School of Business. He is also the co-author of Investment Banking: Valuation, LBOs, M&A, and IPOs and The Little Book of Investing Like the Pros.

JOSEPH GASPARRO is a Vice President in the Industrials & Diversified Services Group at RBC Capital Markets, where he advises on and executes M&A, corporate finance, and capital markets transactions. Previously, he worked in the Investment Banking Division and Global Markets Division of Credit Suisse. Prior to Credit Suisse, he worked at BofA Securities and UBS Investment Bank. He received his BA from Gettysburg College and his MBA from Rutgers Business School. He is a two-time recipient of the President’s Volunteer Service Award, bestowed by the President of the United States. He is also an editor of Investment Banking: Valuation, LBOs, M&A, and IPOs and The Little Book of Investing Like the Pros.

Table of Contents

About the Authors vii

INTRODUCTION 1

Target Audience 2

Content and Applications 2

CHAPTER 1 Comparable Companies Analysis 3

Questions 3

Answers and Rationale 28

CHAPTER 2 Precedent Transactions Analysis 55

Questions 55

Answers and Rationale 76

CHAPTER 3 Discounted Cash Flow Analysis 93

Questions 93

Answers and Rationale 120

CHAPTER 4 Leveraged Buyouts 149

Questions 149

Answers and Rationale 160

CHAPTER 5 LBO Analysis 169

Questions 169

Answers and Rationale 189

CHAPTER 6 Sell-Side M&A 205

Questions 205

Answers and Rationale 217

CHAPTER 7 Buy-Side M&A 225

Questions 225

Answers and Rationale 243

CHAPTER 8 Initial Public Offerings 259

Questions 259

Answers and Rationale 270

CHAPTER 9 The IPO Process 277

Questions 277

Answers and Rationale 288