Joshua Rosenbaum & Joshua Pearl 
Investment Banking Focus Notes [EPUB ebook] 

Investment Banking FOCUS NOTES provides a
comprehensive, yet streamlined, review of the basic skills and
concepts discussed in Investment Banking: Valuation,
Leveraged Buyouts, and Mergers & Acquisitions, Second
Edition. The focus notes are designed for use both as a
companion to the book, as well as on a standalone basis.
Investment Banking focuses on the primary valuation
methodologies currently used on Wall Street–namely,
comparable companies analysis, precedent transactions analysis, DCF
analysis, and LBO analysis–as well as detailed M&A
analysis from both a sell-side and buy-side perspective. Our focus
notes seek to help solidify knowledge of these core financial
topics as true mastery must be tested, honed, and retested over
time.

Tabla de materias

About the Authors vii

Introduction viii

Chapter 1: Comparable Companies Analysis 1

Overview of Comparable Companies Analysis 3

Step I: Select the Universe of Comparable Companies 4

Step II: Locate the Necessary Financial Information 7

Step III: Spread Key Statistics, Ratios, and Trading Multiples 9

Step IV: Benchmark the Comparable Companies 27

Step V: Determine Valuation 33

Key Pros and Cons 38

Chapter 2: Precedent Transactions Analysis 39

Overview of Precedent Transactions Analysis 41

Step I. Select the Universe of Comparable Acquisitions 42

Step II. Locate the Necessary Deal-Related and Financial Information 46

Step III. Spread Key Statistics, Ratios, and Transaction Multiples 49

Step IV. Benchmark the Comparable Acquisitions 64

Step V. Determine Valuation 66

Key Pros and Cons 67

Chapter 3: Discounted Cash Flow Analysis 69

Overview of Discounted Cash Flow Analysis 71

Step I. Study the Target and Determine Key Performance Drivers 73

Step II. Project Free Cash Flow 75

Step III. Calculate Weighted Average Cost of Capital 91

Step IV. Determine Terminal Value 106

Step V. Calculate Present Value and Determine Valuation 112

Key Pros and Cons 118

Chapter 4: Leveraged Buyouts 119

Overview of Leveraged Buyouts 121

Key Participants 122

Characteristics of a Strong LBO Candidate 127

Economics of LBOs 132

Primary Exit / Monetization Strategies 134

LBO Financing: Structure 136

LBO Financing: Primary Sources 138

LBO Financing: Selected Key Terms 142

LBO Financing: Determining Financing Structure 150

Chapter 5: LBO Analysis 153

Overview of LBO Analysis 154

Financing Structure 154

Valuation 155

Step I. Locate and Analyze the Necessary Information 158

Step II. Build the Pre-LBO Model 159

Step III. Input Transaction Structure 167

Step IV. Complete the Post-LBO Model 173

Step V. Perform LBO Analysis 188

Chapter 6: Sell-Side M&A 201

Overview of Sell-Side M&A 203

Auctions 205

Organization and Preparation 209

First Round 218

Second Round 229

Negotiations 236

Closing 241

Negotiated Sale 246

Chapter 7: Buy-Side M&A 247

Overview of Buy-Side M&A 248

Buyer Motivation 250

Acquisition Strategies 254

Form of Financing 259

Deal Structure 264

Buy-Side Valuation 273

Merger Consequences Analysis 278

Index 295

Sobre el autor

Joshua Rosenbaum is a Managing Director at UBS Investment
Bank in the Global Industrial Group. He originates, structures, and
advises on M&A, corporate finance, and capital markets
transactions. Previously, he worked at the International Finance
Corporation, the direct investment division of the World Bank. He
received his AB from Harvard and his MBA with Baker Scholar honors
from Harvard Business School.

Joshua Pearl is an investment analyst at Brahman Capital
Corp. Previously, he structured and executed leveraged loan and
high yield bond financings, as well as leveraged buyouts and
restructurings as a Director at UBS Investment Bank in Leveraged
Finance. Prior to UBS, he worked at Moelis & Company and
Deutsche Bank. He received his BS in Business from Indiana
University’s Kelley School of Business.