Shearman & Sterling

FEBRUARY 3, 2021

based on a discounted cash flow analysis ("DCF"). Manichaean Capital LLC, No. On January 22, 2021, the Delaware Supreme Court affirmed en banc the Delaware Court of Chancery's decision appraising outsourcing and financial services company SourceHOV Holdings, Inc. SourceHOV Holdings Inc. 215, 2020 (Del.

DCF 40

DCF DCF Analysis Discounted Cash Flow Financial Services 40

Mergers and Inquisitions

MARCH 13, 2024

Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity. Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms.

Private Equity 105

Private Equity Equities Capital Portfolio 105

Lake Country Advisors

AUGUST 8, 2024

Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. Market capitalization is helpful for comparing the relative sizes of different companies within the same industry. Example Scenario: Suppose you want to value a technology company, TechCo.

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Francine Way

JULY 18, 2017

Because dividends is a piece of equity, we can use the Capital Asset Pricing Model (CAPM) to calculate the proper Rate of Return (r). Projected Book Value of Equity at the end of the 15 years = from the proforma balance sheet that we developed in our DCF post. The 1st step in DDM is to derive the proper discount rate (Rate of Return).

Valuation 130

Valuation M&A DCF Shares 130

Mergers and Inquisitions

OCTOBER 18, 2023

Even though we’ve covered industry groups vs. product groups and teams such as M&A , ECM , DCM , and Leveraged Finance , we continue to get questions about capital markets vs. investment banking. The questions usually go like this: Are capital markets teams (ECM, DCM, and LevFin) “real” investment banking? Do you learn anything?

Investment Banking 59

Investment Banking Capital Market Recruitment Capital 59

Mergers and Inquisitions

SEPTEMBER 20, 2023

Look around online, and you will quickly discover that most coverage of venture capital interview questions is junk. Categories of Venture Capital Interview Questions I would split VC interview questions into 6 main categories. Venture Capital Interview Questions: Fit / Background Q: Walk me through your resume.

Capital 59

Capital Valuation Investment Portfolio 59

OfficeHours

MAY 19, 2023

If you’ve ever thought that Buyside might be for you — whether it be Growth Equity, Private Equity, Hedge Funds, Corporate Development, Venture Capital, etc. A Few Reads to Digest Valuation Simplified: How Discounted Cash Flow Modeling Drives Financial Analysis Harness Discounted Cash Flow (DCF) modeling for financial analysis.

Discounted Cash Flow 130

Discounted Cash Flow Financial Analysis Accountant DCF 130

Wizenius

MAY 14, 2023

Terminal Value The terminal value is an essential component of a discounted cash flow (DCF) analysis. It represents the value of a business or an investment beyond the explicit projection period used in the DCF model. This method is particularly useful for capital-intensive industries. Here are three widely used approaches: 1.

DCF Analysis 52

DCF Analysis Discounted Cash Flow DCF Valuation 52

Shearman & Sterling

JANUARY 2, 2017

Merion Capital L.P., . ("LPS"), in an appraisal action brought by shareholder petitioners after Fidelity National Financial, Inc. ("Fidelity") acquired LPS. Lender Processing Services, Inc.,

Discounted Cash Flow 52

Discounted Cash Flow DCF Sale Stock 52

Mergers and Inquisitions

MAY 3, 2023

It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF. The basic set of steps looks like this: Step 1: Forecast Revenue and Expenses This is the same as in any other 3-statement model or DCF.

Valuation 64

Valuation DCF Debt Financial Modeling 64

Shearman & Sterling

JANUARY 2, 2017

Merion Capital L.P., . ("LPS"), in an appraisal action brought by shareholder petitioners after Fidelity National Financial, Inc. ("Fidelity") acquired LPS. Lender Processing Services, Inc.,

Discounted Cash Flow 40

Discounted Cash Flow DCF Sale Stock 40

Peak Frameworks

JUNE 7, 2023

Diving Deep into Cash Flow from Operations Cash flow from operations is calculated by adjusting net income for non-cash expenses and changes in working capital. Changes in Working Capital - Adjustments must be made for increases and decreases in current assets and current liabilities.

Financial Analysis 52

Financial Analysis Discounted Cash Flow DCF Valuation 52

Francine Way

JULY 20, 2017

Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). The lease origination business is valued at a multiple of upfront fees less costs.

Valuation 130

Valuation M&A Business IT 130

Francine Way

JULY 17, 2017

For this table, recall that LBO transactions are heavily financed with debt (it can go up to 90% of the capital structure for some deals). Capex as % of Sales = - Capital Expenditures / Revenue. Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.),

Valuation 130

Valuation M&A Debt Book-building 130

Wizenius

JUNE 25, 2023

Weighted Average Cost of Capital (WACC): Calculate the Weighted Average Cost of Capital (WACC), which represents the average rate of return required by the company's investors. The WACC considers the cost of debt and equity financing and reflects the risk associated with the company's capital structure.

Financial Modeling 52

Financial Modeling Financial Models Investment Banking DCF Analysis 52

Sun Acquisitions

NOVEMBER 17, 2023

Deal Financing: Valuation guides the selection of the proper financing structure for the deal, including how much capital is required and where it should be sourced. Discounted Cash Flow (DCF): DCF is a fundamental valuation method that estimates the present value of a company’s future cash flows.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation M&A Mergers 59

MergersCorp M&A International

NOVEMBER 1, 2024

Discounted Cash Flow (DCF) Analysis: A DCF model is often used to estimate the intrinsic value of the company based on projected future cash flows. Brand Reputation and Market Position: The brand’s reputation can significantly impact its ability to raise capital.

Asset Management 52

Asset Management Management Valuation Discounted Cash Flow 52

Focus Investment Banking

APRIL 7, 2024

For private equity (PE) groups, these rates determine the cost of capital, which is essential for their investment strategies. Discounted Cash Flow (DCF) Analysis: This is the most common valuation method involving discounting future cash flows back to their present value.

Private Equity 52

Private Equity Valuation Equities Business 52

Wizenius

JUNE 5, 2023

Highlight your experience in performing company valuations using various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, or precedent transactions. Highlight your ability to identify potential investors, analyze market conditions, and create compelling presentations to secure capital for clients.

Investment Banking 52

Investment Banking Bank Banking Investment 52

Mergers and Inquisitions

DECEMBER 6, 2023

The multi-manager hedge fund model is simple: Raise $10-20 billion, borrow at the fund level to take this to $50-$100 billion, and then allocate this capital to dozens of internal teams. So, expect a lot of quarterly financial projections , quick public comps , and simple DCF models linked to specific catalysts.

Funds 104

Funds Management Recruitment Portfolio 104

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. FCF: Free Cash Flow The amount of cash a company generates after deducting any capital expenditures.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Mergers and Inquisitions

JANUARY 22, 2025

For example, in IB interviews, youll have to know about accounting, valuation/DCF analysis, merger models, and LBO models plus the usual fit/behavioral questions , your resume walkthrough , and a few recent deals. If you do IB, you can get into deal-based roles ( private equity , corporate development , venture capital , etc.),

Investment Banking 64

Investment Banking Equities Bank Banking 64

Wizenius

JULY 30, 2023

Lets see how this works Most of the variations of Financial models in investment banking mostly revolve around 1) DCF 2) M&A 3) LBO 4) Comparable & Transaction Comps Idea Bank - From Scratch to Template: Build a comprehensive version of each of the above varieties of financial models from scratch.

Financial Modeling 52

Financial Modeling Financial Models Investment Banking Bank 52

Devensoft

AUGUST 22, 2023

As opposed to merely focusing on the market capitalization, which only accounts for the company’s equity value, the Enterprise Value Calculator considers the company’s debt, cash, and other financial liabilities. Discount Rates Discount rates are used in the DCF method to determine the present value of future cash flows.

Valuation 52

Valuation M&A Utilities Mergers and Acquisitions 52

Mergers and Inquisitions

JANUARY 10, 2024

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. Think: benchmarking portfolios rather than modeling companies. As with the job itself, the theme is breadth over depth.

Investment Banking 59

Investment Banking Management Bank Banking 59

Mergers and Inquisitions

JULY 26, 2023

Like a PE firm, a search fund raises capital from outside investors and aims to multiply that capital by investing it – but like a SPAC, it makes only one acquisition. Because search funds raise little capital to acquire these small businesses, most search fund internships are unpaid.

Private Equity 52

Private Equity Investment Banking Funds Equities 52

Mergers and Inquisitions

MAY 29, 2024

Project Finance Definition: “Project Finance” refers to acquisitions, debt/equity financings, and new developments of capital-intensive infrastructure assets that provide essential utilities and services. Outside of LBOs, this Exit Value or Terminal Value concept is widely used in other corporate finance analyses, such as the DCF model.

Corporate Finance 59

Corporate Finance Financial Modeling Financial Models Finance 59

Cooley M&A

JULY 9, 2021

Nonetheless, parties should be mindful of the potential impact of Regal in transactions with delayed closings (particularly those with more significant gaps between signing and closing), as it provides a roadmap for would-be appraisal arbitragers to potentially capitalize on increases in target’s value between signing and closing.

Mergers and Acquisitions 52

Mergers and Acquisitions Sale Shares Entertainment 52

Mergers and Inquisitions

JULY 19, 2023

Think: a deep review of companies’ financial statements, 3-statement models , and DCF-based valuations. You do not have a good shot at exit opportunities such as private equity , investment banking , venture capital , or corporate development because they all require deal experience.

Funds 52

Funds Asset Management Management Equities 52

Mergers and Inquisitions

NOVEMBER 1, 2023

Healthcare Private Equity Definition : A healthcare private equity firm raises capital from outside investors (Limited Partners), acquires companies in the healthcare services, devices, and healthcare IT segments, and aims to grow these firms and sell their stakes within 3 – 7 years to realize a return on their investments.

Private Equity 59

Private Equity Healthcare Equities Middle Market 59

Mergers and Inquisitions

DECEMBER 20, 2023

Internships at local venture capital or private equity firms. Yes, you can read guides , take courses , and watch YouTube videos , but you should also spend a few hours building simple DCF models or 3-statement models to learn the key concepts. Internships at regional boutique banks. Corporate finance roles at nearby companies.

Investment Banking 105

Investment Banking Bank Banking Investment 105

Mergers and Inquisitions

JUNE 21, 2023

Most of our students and coaching clients in the Middle East have had to complete modeling tests or case studies, even for entry-level roles, and something like the 90-minute 3-statement modeling test or DCF model on this site could easily come up. 7,200 | U.K.: 1,000 | Dubai: ~150 Hedge Funds: S.: 3,200 | U.K.: ~500 standards (i.e.,

Investment Banking 105

Investment Banking Bank Banking Investment 105

Mergers and Inquisitions

APRIL 5, 2023

Sovereign wealth funds have much longer time horizons and more “permanent capital” than traditional PE firms, hedge funds, and funds of funds, and these points create differences in timing, strategy, and willingness to pay. You can also potentially join a portfolio company if you’ve worked in a group that does direct or co-investments.

Recruitment 59

Recruitment Funds Private Equity Investment 59

Mergers and Inquisitions

NOVEMBER 20, 2024

This site has already covered investment banking interview questions , private equity interview questions , and venture capital interview questions , so the next topic on the list seemed to be growth equity interview questions. Q: Why not go into private equity, venture capital, or startups?

Private Equity 59

Private Equity Equities Capital Valuation 59

Mergers and Inquisitions

MARCH 5, 2025

In technology, as a startup keeps raising capital, it normally does so at gradually higher valuations as its customers, users, and revenue grow. But in biotech, companies valuations often remain close to their total capital raised until much later in the process (i.e., Other large funds include Perceptive Advisors, RA Capital, and RTW.

Funds 64

Funds Healthcare Mergers and Acquisitions Valuation 64

Mergers and Inquisitions

APRIL 19, 2023

For example, Capital IQ splits up the sector by metal type (aluminum, diversified, copper, gold, precious metals, silver, and steel). Valuation , such as the different multiples used for mining companies and the NAV model in place of the DCF (see below). However, mining companies are usually classified based on their focus metal.

Investment Banking 52

Investment Banking Bank Banking Investment 52