Investment Banking, 3rd Edition

Foreword

Mark Twain, long known for his critical views of formal education, once wisely noted: “I never let my schooling interfere with my education.”

Twain’s one-liner strikes at the core of investment banking, where deals must be lived before proper knowledge and understanding can be obtained. Hard time must be spent doing deals, with complexities in valuation, terms, and negotiations unique to every situation. The truly great firms and dealmakers have become so by developing cultures of apprenticeship that transfer knowledge and creativity from one generation to the next. The task of teaching aspiring investment bankers and0 finance professionals has been further complicated by the all-consuming nature of the trade, as well as its constantly evolving art and science.

Therefore, for me personally, it’s exciting to see Joshua Rosenbaum and Joshua Pearl take the lead in training a new generation of investment bankers. Their work in documenting valuation and deal process in an accessible manner is a particularly important contribution as many aspects of investment banking cannot be taught, even in the world’s greatest universities and business schools. Rosenbaum and Pearl provide aspiring—and even the most seasoned—investment bankers with a unique real-world education inside Wall Street’s less formal classroom, where deals come together at real-time speed.

The school of hard knocks and of learning-by-doing, which was Twain’s classroom, demands strong discipline and sound acumen ...