Book description
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 has been able to take the time to properly codify the lifeblood of the corporate financier's work—namely, valuation. Rosenbaum and Pearl have responded to this need by writing the book that they wish had existed when they were trying to break into Wall Street.
Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions is a highly accessible and authoritative book that focuses on the primary valuation methodologies currently used on Wall Street—comparable companies, precedent transactions, DCF, and LBO analysis. These methodologies are used to determine valuation for public and private companies within the context of M&A transactions, LBOs, IPOs, restructurings, and investment decisions. 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. They also provide a comprehensive overview of the fundamentals of LBOs and an organized M&A sale process.
In the aftermath of the subprime mortgage crisis and ensuing credit crunch, the world of finance is returning to the fundamentals of valuation and critical due diligence. This involves the use of more realistic assumptions governing approach to risk as well as a wide range of value drivers. While valuation has always involved a great deal of "art" in addition to time-tested "science," the artistry is perpetually evolving in accordance with market developments and conditions. In this sense, this book is particularly topical—in addition to detailing the technical fundamentals behind valuation, the authors infuse practical judgment skills and perspective to help guide the science.
Table of contents
- Title Page
- Copyright Page
- Dedication
- About the Authors
- Foreword
- Acknowledgements
- Supplemental Materials
- Introduction
-
PART One: Valuation
-
CHAPTER 1 - Comparable Companies Analysis
- SUMMARY OF COMPARABLE COMPANIES ANALYSIS STEPS
- STEP I. SELECT THE UNIVERSE OF COMPARABLE COMPANIES
- STEP II. LOCATE THE NECESSARY FINANCIAL INFORMATION
- STEP III. SPREAD KEY STATISTICS, RATIOS, AND TRADING MULTIPLES
- STEP IV. BENCHMARK THE COMPARABLE COMPANIES
- STEP V. DETERMINE VALUATION
- KEY PROS AND CONS
- ILLUSTRATIVE COMPARABLE COMPANIES ANALYSIS FOR VALUECO
-
CHAPTER 2 - Precedent Transactions Analysis
- SUMMARY OF PRECEDENT TRANSACTIONS ANALYSIS STEPS
- STEP I. SELECT THE UNIVERSE OF COMPARABLE ACQUISITIONS
- STEP II. LOCATE THE NECESSARY DEAL-RELATED AND FINANCIAL INFORMATION
- STEP III. SPREAD KEY STATISTICS, RATIOS, AND TRANSACTION MULTIPLES
- STEP IV. BENCHMARK THE COMPARABLE ACQUISITIONS
- STEP V. DETERMINE VALUATION
- KEY PROS AND CONS
- ILLUSTRATIVE PRECEDENT TRANSACTION ANALYSIS FOR VALUECO
-
CHAPTER 3 - Discounted Cash Flow Analysis
- STEP I. STUDY THE TARGET AND DETERMINE KEY PERFORMANCE DRIVERS
- STEP II. PROJECT FREE CASH FLOW
- STEP III. CALCULATE WEIGHTED AVERAGE COST OF CAPITAL
- STEP IV. DETERMINE TERMINAL VALUE
- STEP V. CALCULATE PRESENT VALUE AND DETERMINE VALUATION
- KEY PROS AND CONS
- ILLUSTRATIVE DISCOUNTED CASH FLOW ANALYSIS FOR VALUECO
-
CHAPTER 1 - Comparable Companies Analysis
- PART Two: Leveraged Buyouts
- PART Three: Mergers & Acquisitions
- Bibliography and Recommended Reading
- Index
Product information
- Title: Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions
- Author(s):
- Release date: May 2009
- Publisher(s): Wiley
- ISBN: 9780470442203
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