Investment Banking, 2nd Edition

Investment Banking, 2nd Edition

by Joshua Rosenbaum, Joshua Pearl, Joseph R. Perella, Joshua Harris
Released June 2013
Publisher(s): Wiley
ISBN: 9781118656211

Read it now on the O’Reilly learning platform with a 10-day free trial.

O’Reilly members get unlimited access to books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial

Book description

The No. 1 guide to investment banking and valuation methods, including online tools

In the constantly evolving world of finance, a solid technical foundation is an essential tool for success. Until the welcomed arrival of authors Josh Rosenbaum and Josh Pearl, no one had taken the time to properly codify the lifeblood of the corporate financier's work-namely, valuation, through all of the essential lenses of an investment banker. With the release of Investment Banking, Second Edition: Valuation, Leveraged Buyouts, and Mergers & Acquisitions, Rosenbaum and Pearl once again have written the definitive book that they wish had existed when they were trying to break into Wall Street. The Second Edition includes both the technical valuation fundamentals as well as practical judgment skills and perspective to help guide the science. This book focuses on the primary valuation methodologies currently used on Wall Street: comparable companies analysis, precedent transactions analysis, discounted cash flow analysis, and leveraged buyout analysis. With the new fully revised edition, they have added the most comprehensive, rigorous set of intuition-building and problem-solving ancillaries anywhere all of which promised to become essential, knowledge enhancing tools for professionals, and professors and students.

For those who purchase this edition of the book, there are options to purchase the Valuation Models separately (9781118586167), and to also consider purchase of the Investing Banking Workbook (9781118456118) and Investment Banking Focus Notes (9781118586082) for further self-study.

Table of contents

  1. Cover
  2. About the Authors
  3. Foreword
  4. Introduction
    1. STRUCTURE OF THE BOOK
    2. VALUECO SUMMARY FINANCIAL INFORMATION
  5. 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. Bloomberg Appendix
    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. Bloomberg Appendix
    3. CHAPTER 3: Discounted Cash Flow Analysis
      1. STEP I. STUDY THE TARGET AND DETERMINE KEY PERFORMANCE DRIVERS
      2. STEP II. PROJECT FREE CASH FLOW
      3. STEP III. CALCULATE WEIGHTED AVERAGE COST OF CAPITAL
      4. STEP IV. DETERMINE TERMINAL VALUE
      5. STEP V. CALCULATE PRESENT VALUE AND DETERMINE VALUATION
      6. KEY PROS AND CONS
      7. ILLUSTRATIVE DISCOUNTED CASH FLOW ANALYSIS FOR VALUECO
      8. Bloomberg Appendix
  6. 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. Bloomberg Appendix
    2. CHAPTER 5: LBO Analysis
      1. STEP I. LOCATE AND ANALYZE THE NECESSARY INFORMATION
      2. STEP II. BUILD THE PRE-LBO MODEL
      3. STEP III. INPUT TRANSACTION STRUCTURE
      4. STEP IV. COMPLETE THE POST-LBO MODEL
      5. STEP V. PERFORM LBO ANALYSIS
      6. ILLUSTRATIVE LBO ANALYSIS FOR VALUECO
      7. Bloomberg Appendix
  7. PART Three: Mergers & Acquisitions
    1. CHAPTER 6: Sell-Side M&A
      1. AUCTIONS
      2. NEGOTIATED SALE
      3. Bloomberg Appendix
    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. Bloomberg Appendix
  8. Afterword
  9. Bibliography and Recommended Reading
  10. Index
  11. End User License Agreement

Product information

  • Title: Investment Banking, 2nd Edition
  • Author(s): Joshua Rosenbaum, Joshua Pearl, Joseph R. Perella, Joshua Harris
  • Release date: June 2013
  • Publisher(s): Wiley
  • ISBN: 9781118656211