Investment Banking

Investment Banking, UNIVERSITY EDITION is a highly accessible and authoritative book written by investment bankers that explains how to perform the valuation work at the core of the financial world. This body of work builds on Rosenbaum and Pearl s combined 30+ years of experience on a multitude of transactions, as well as input received from numerous investment bankers, investment professionals at private equity firms and hedge funds, attorneys, corporate executives, peer authors, and university professors. This book fills a noticeable gap in contemporary finance literature, which tends to focus on theory rather than practical application. It focuses on the primary valuation methodologies currently used on Wall Street comparable companies, precedent transactions, DCF, and LBO analysis as well as M&A analysis. The ability to perform these methodologies is especially critical for those students aspiring to gain full-time positions at investment banks, private equity firms, or hedge funds. This is the book Rosenbaum and Pearl wish had existed when we were trying to break into Wall Street. Written to reflect today s dynamic market conditions, Investment Banking, UNIVERSITY EDITION skillfully: Introduces students to the primary valuation methodologies currently used on Wall Street Uses a step-by-step how-to approach for each methodology and builds a chronological knowledge base Defines key terms, financial concepts, and processes throughout Provides a comprehensive overview of the fundamentals of LBOs and an organized M&A sale process Presents new coverage of M&A buy-side analytical tools which includes both qualitative aspects, such as buyer motivations and strategies, along with technical financial and valuation assessment tools Includes a comprehensive merger consequences analysis, including accretion/(dilution) and balance sheet effects Contains challenging end-of-chapter questions to reinforce concepts covered A perfect guide for those seeking to learn the fundamentals of valuation, M&A , and corporate finance used in investment banking and professional investing, this UNIVERSITY EDITION which includes an instructor s companion site is an essential asset. It provides students with an invaluable education as well as a much-needed edge for gaining entry to the ultra-competitive world of professional finance.

Investment Banking, UNIVERSITY EDITION is a highlyaccessible and authoritative book written by investment bankersthat explains how to perform the valuation work at the core of thefinancial world. This body of work builds on Rosenbaum andPearl's combined 30+ years of experience on a multitude oftransactions, as well as input received from numerous investmentbankers, investment professionals at private equity firms and hedgefunds, attorneys, corporate executives, peer authors, anduniversity professors.This book fills a noticeable gap in contemporary financeliterature, which tends to focus on theory rather than practicalapplication. It focuses on the primary valuation methodologiescurrently used on Wall Street--comparable companies, precedenttransactions, DCF, and LBO analysis--as well as M&Aanalysis. The ability to perform these methodologies is especiallycritical for those students aspiring to gain full-time positions atinvestment banks, private equity firms, or hedge funds. This is thebook Rosenbaum and Pearl wish had existed when we were trying tobreak into Wall Street.Written to reflect today's dynamic market conditionsInvestment Banking, UNIVERSITY EDITIONskillfully:* Introduces students to the primary valuation methodologiescurrently used on Wall Street* Uses a step-by-step how-to approach for each methodology andbuilds a chronological knowledge base* Defines key terms, financial concepts, and processesthroughout* Provides a comprehensive overview of the fundamentals of LBOsand an organized M&A sale process* Presents new coverage of M&A buy-side analyticaltools--which includes both qualitative aspects, such as buyermotivations and strategies, along with technical financial andvaluation assessment tools* Includes a comprehensive merger consequences analysisincluding accretion/(dilution) and balance sheet effects* Contains challenging end-of-chapter questions to reinforceconcepts coveredA perfect guide for those seeking to learn the fundamentals ofvaluation, M&A , and corporate finance used in investmentbanking and professional investing, this UNIVERSITYEDITION--which includes an instructor'scompanion site--is an essential asset. It provides studentswith an invaluable education as well as a much-needed edge forgaining entry to the ultra-competitive world of professionalfinance.

Instructor and Student Resources xiiiAbout the Authors xvForeword xviiAcknowledgments xixINTRODUCTION 1PART ONE Valuation 11CHAPTER 1 Comparable Companies Analysis 13CHAPTER 2 Precedent Transactions Analysis 87CHAPTER 3 Discounted Cash Flow Analysis 135PART TWO Leveraged Buyouts 197CHAPTER 4 Leveraged Buyouts 199CHAPTER 5 LBO Analysis 251PART THREE Mergers & Acquisitions 313CHAPTER 6 Sell-Side M&A 315CHAPTER 7 Buy-Side M&A 355Solutions Manual 425Afterword 447Bibliography and Recommended Reading 449Index 455