Focus Investment Banking

APRIL 7, 2024

Discounted Cash Flow (DCF) Analysis: This is the most common valuation method involving discounting future cash flows back to their present value. Impact on Business Valuations: The fluctuation in interest rates not only influences PE activities but also affects how businesses are valued.

Private Equity 52

Private Equity Valuation Equities Business 52

Mergers and Inquisitions

JANUARY 10, 2024

When a deal becomes “active” in IB, you dive into it and go in-depth into all aspects, from the financials to the buyer/seller outreach to the presentations and more. You will very rarely get exposed to the type of financial modeling that bankers complete: 3-statement models , DCF models , M&A models , LBO models , and so on.

Investment Banking 59

Investment Banking Management Banking Bank 59

Successful Acquisitions

MARCH 2, 2023

We see payables from customers, but not the long relationship and reputation that fostered those sales. sales or 7x EBITDA. Another potential problem is that the value, EBITDA and Sales figures reported may not be accurate for private companies. The DCF Approach has its own share of drawbacks as well however.

Valuation 52

Valuation DCF Discounted Cash Flow M&A 52

Software Equity Group

FEBRUARY 26, 2024

DCF: Discounted Cash Flow Estimates a company’s value and forecasts future cash flow by incorporating the time value of money. DCF is used when making investment decisions and understanding a business’s current and future value. It determines a more constant rate of return on business growth that naturally fluctuates over time.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Mergers and Inquisitions

APRIL 19, 2023

Valuation , such as the different multiples used for mining companies and the NAV model in place of the DCF (see below). Here’s an example from the Capstone / Mantos Copper presentation below: Companies often go into detail on individual mines , with estimates for their useful lives, annual production, and “all-in sustaining costs,” or AISC.

Investment Banking 52

Investment Banking Banking Bank Investment 52

RKJ Partners

AUGUST 6, 2017

For the purposes of this article, we will focus on valuation from the perspective of a merger and acquisition transaction, and specifically from the viewpoint of a buyer evaluating a business for sale. This means that the method evaluates the future cash flow of the company and then discounts those cash flows to the present day.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

Mergers and Inquisitions

SEPTEMBER 20, 2023

If you worked at a startup, how did you win more customers or partners in a sales or business development role? For VC, your strengths should include points like “communication/presentation skills,” “networking ability,” and “being able to update your views quickly” (i.e., Q: What are your strengths and weaknesses?

Capital 59

Capital Valuation Investment Portfolio 59

Mergers and Inquisitions

OCTOBER 18, 2023

Many firms put capital markets groups within “Investment Banking,” but some include it within Sales & Trading or “Global Markets.” In a good industry group, you might build a 3-statement model for a client based on a detailed review of its business, and you would use the output in the CIM and management presentation to market the company.

Investment Banking 59

Investment Banking Capital Market Recruitment Capital 59

Mergers and Inquisitions

JANUARY 22, 2025

The difference is that IB is more of an explicit sales job , as deals must close for the bank to earn fees. Equity research at the senior levels does require sales skills, but its more about being a conduit than a closer.

Investment Banking 64

Investment Banking Equities Banking Bank 64

Mergers and Inquisitions

MARCH 5, 2025

For example, a company may have won approval for its drug and indicated that its expected peak sales will be $5 billion annually. Based on this, the market values the company at a 1x Enterprise Value / Peak Sales multiple, so its current Enterprise Value is $5 billion. How long will it take for the drug to launch and reach peak sales?

Funds 64

Funds Healthcare Mergers and Acquisitions Valuation 64

Mergers and Inquisitions

NOVEMBER 20, 2024

Communication/presentation skills and technical/modeling/deal skills are all quite important, but “sales skills” are also crucial if you’re interviewing at a firm with significant sourcing. Q: What are your strengths and weaknesses? A: This is a common question, but there isn’t much unique to growth equity. Q: Why our firm/group?

Private Equity 59

Private Equity Equities Capital Valuation 59