Investment Banking, (Includes Valuation Models + Online Course), 3rd Edition

Investment Banking, (Includes Valuation Models + Online Course), 3rd Edition

by Joshua Rosenbaum, Joshua Pearl, Joseph R. Perella, Joshua Harris
Released April 2020
Publisher(s): Wiley
ISBN: 9781119706182

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Book description

A timely update to the global bestselling book on investment banking and valuation – this new edition reflects valuable contributions from Nasdaq and the global law firm Latham & Watkins LLP plus access to the online valuation models and course.

In the constantly evolving world of finance, a solid technical foundation is an essential tool for success. Due to the fast-paced nature of this world, however, no one was able to take the time to properly codify its lifeblood--namely, valuation and dealmaking. Rosenbaum and Pearl originally responded to this need in 2009 by writing the first edition of the book that they wish had existed when they were trying to break into Wall Street.

Investment Banking: Valuation, LBOs, M&A, and IPOs, 3rd Edition is a highly accessible and authoritative book written by investment bankers that explains how to perform the valuation work and financial analysis at the core of Wall Street – comparable companies, precedent transactions, DCF, LBO, M&A analysis...and now IPO analytics and valuation. Using a step-by-step, how-to approach for each methodology, the authors build a chronological knowledge base and define key terms, financial concepts, and processes throughout the book.

The genesis for the original book stemmed from the authors' personal experiences as students interviewing for investment banking positions. As they both independently went through the rigorous process, they realized that their classroom experiences were a step removed from how valuation and financial analysis were performed in real-world situations. Consequently, they created this book to provide a leg up to those individuals seeking or beginning careers on Wall Street – from students at undergraduate universities and graduate schools to "career changers" looking to break into finance.

Now, over 10 years after the release of the first edition, the book is more relevant and topical than ever. It is used in over 200 universities globally and has become a go-to resource for investment banks, private equity, investment firms, and corporations undertaking M&A transactions, LBOs, IPOs, restructurings, and investment decisions. While the fundamentals haven't changed, the environment must adapt to changing market developments and conditions. As a result, Rosenbaum and Pearl have updated their widely adopted book accordingly, turning the latest edition of Investment Banking: Valuation, LBOs, M&A, and IPOs into a unique and comprehensive training package, which includes:

  • Two new chapters covering IPOs plus insightful contributions from Nasdaq, the leading U.S. exchange and technology provider for IPOs and new listings, and global law firm Latham & Watkins LLP
  • Access to six downloadable valuation model templates, including Comparable Companies Analysis, Precedent Transactions Analysis, Discounted Cash Flow Analysis, Leveraged Buyout Analysis, and M&A models
  • Six-month access to online Wiley Investment Banking Valuation Course featuring bite-sized lessons, over five hours of video lectures, 100+ practice questions, and other investment banking study tools

Launch your career on Wall Street and hone your financial expertise with Rosenbaum and Pearl’s real-world knowledge and forward-looking guidance in the latest edition of Investment Banking: Valuation, LBOs, M&A, and IPOs.

Table of contents

  1. Cover
  2. Additional Resources
  3. About the Authors
  4. About the Editors
  5. Foreword
  6. Acknowledgments
  7. Disclaimer
  8. Introduction
  9. Part One Valuation
    1. Chapter 1 Comparable Companies Analysis
      1. Summary of Comparable Companies Analysis Steps
      2. Step I. Select the Universe of Comparable Companies
      3. Step II. Locate the Necessary Financial Information
      4. Step III. Spread Key Statistics, Ratios, and Trading Multiples
      5. Step IV. Benchmark the Comparable Companies
      6. Step V. Determine Valuation
      7. Key Pros and Cons
      8. Illustrative Comparable Companies Analysis for ValueCo
      9. Notes
    2. Chapter 2 Precedent Transactions Analysis
      1. Summary of Precedent Transactions Analysis Steps
      2. Step I. Select the Universe of Comparable Acquisitions
      3. Step II. Locate the Necessary Deal-Related and Financial Information
      4. Step III. Spread Key Statistics, Ratios, and Transaction Multiples
      5. Step IV. Benchmark the Comparable Acquisitions
      6. Step V. Determine Valuation
      7. Key Pros and Cons
      8. Illustrative Precedent Transaction Analysis for ValueCo
      9. Notes
    3. Chapter 3 Discounted Cash Flow Analysis
      1. Summary of Discounted Cash Flow Analysis Steps
      2. Step I. Study the Target and Determine Key Performance Drivers
      3. Step II. Project Free Cash Flow
      4. Step III. Calculate Weighted Average Cost of Capital
      5. Step IV. Determine Terminal Value
      6. Step V. Calculate Present Value and Determine Valuation
      7. Key Pros and Cons
      8. Illustrative Discounted Cash Flow Analysis for ValueCo
      9. Notes
  10. Part Two Leveraged Buyouts
    1. Chapter 4 Leveraged Buyouts
      1. Key Participants
      2. Characteristics of a Strong LBO Candidate
      3. Economics of LBOs
      4. Primary Exit/Monetization Strategies
      5. LBO Financing: Structure
      6. LBO Financing: Primary Sources
      7. LBO Financing: Selected Key Terms
      8. LBO Financing: Determining Financing Structure
      9. Notes
    2. Chapter 5 LBO Analysis
      1. Financing Structure
      2. Valuation
      3. Step I. Locate and Analyze the Necessary Information
      4. Step II. Build the Pre-LBO Model
      5. Step III. Input Transaction Structure
      6. Step IV. Complete the Post-LBO Model
      7. Step V. Perform LBO Analysis
      8. Illustrative LBO Analysis for ValueCo
      9. Notes
  11. Part Three Mergers & Acquisitions
    1. Chapter 6 Sell-Side M&A
      1. Auctions
      2. Organization and Preparation
      3. First Round
      4. Second Round
      5. Negotiations
      6. Closing
      7. Negotiated Sale
      8. Notes
    2. Chapter 7 Buy-Side M&A
      1. Buyer Motivation
      2. Acquisition Strategies
      3. Form of Financing
      4. Deal Structure
      5. Buy-Side Valuation
      6. Merger Consequences Analysis
      7. Illustrative Merger Consequences Analysis for the BuyerCo / ValueCo Transaction
      8. Notes
  12. Part Four Initial Public Offerings
    1. Chapter 8 Initial Public Offerings
      1. Why Do Companies Go Public?
      2. Characteristics of a Strong IPO Candidate
      3. Key Participants
      4. Selected Key Terms
      5. Dual-Track Process
      6. Special Purpose Acquisition Companies (SPACs)
      7. Direct Listings
      8. Post-IPO Equity Offerings
      9. IPO Considerations
      10. Nasdaq Appendix
      11. Notes
    2. Chapter 9 The IPO Process
      1. Organization and Preparation
      2. Due Diligence, Drafting, and Filing
      3. Marketing and Roadshow
      4. Pricing and Allocation
      5. Notes
  13. Afterword
  14. Bibliography and Recommended Reading
  15. Index
  16. Advert
  17. ACCESS PIN
  18. EULA

Product information

  • Title: Investment Banking, (Includes Valuation Models + Online Course), 3rd Edition
  • Author(s): Joshua Rosenbaum, Joshua Pearl, Joseph R. Perella, Joshua Harris
  • Release date: April 2020
  • Publisher(s): Wiley
  • ISBN: 9781119706182