Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions

1

The notion of “spreading” refers to performing calculations in a spreadsheet program such as Microsoft Excel.

2

The Securities and Exchange Commission (SEC) is a federal agency created by the Securities Exchange Act of 1934 that regulates the U.S. securities industry. SEC filings can be located online at www.sec.gov.

3

The sum of the prior four quarters of a company’s financial performance, also known as trailing twelve months (TTM).

4

Public or publicly traded companies refer to those listed on a public stock exchange where their shares can be traded. Public filers (“public registrants”), however, may include privately held companies that are issuers of public debt securities and, therefore, subject to SEC disclosure requirements.

5

Presentations at investment conferences or regular performance reports, typically posted on a company’s corporate website. Investor presentations may also be released for significant M&A events or as part of Regulation FD requirements. They are typically posted on the company’s corporate website under “Investor Relations” and filed in an 8-K.

6

A process through which a target is marketed to prospective buyers, typically run by an investment banking firm. See Chapter 6: M&A Sale Process for additional information.

7

Other factors, such as the local capital markets conditions, including volume, liquidity, transparency, shareholder base, and investor perceptions, as well as political risk, also contribute to these disparities.

8

Depending on ...