Wizenius

JUNE 23, 2023

Working capital refers to the difference between a company's current assets and current liabilities and is a measure of the operational liquidity required to fund day-to-day operations. Impact of Working Capital on Cash Flows: Changes in working capital can affect the cash flows used in the DCF analysis.

DCF 52

DCF DCF Analysis Capital Financial Modeling 52

OfficeHours

AUGUST 9, 2023

Private equity involves investing capital directly into private businesses that are not publicly traded on stock exchanges (that would be a hedge fund). Once improved, the exit can then take place, usually in the form of another sale or an Initial Public Offering (IPO), both of which are usually under the advice of an investment bank.

Private Equity 130

Private Equity Equities Investment Banking Investment 130

Mergers and Inquisitions

AUGUST 7, 2024

If you’ve read this site for a long time, you probably know that we focus on creating financial modeling courses and guides. For example, what if you get into IB out of undergrad instead of having to take a Big 4 job first , or you get into the M&A group without having to work in capital markets and then switch after a year?

Investment Banking 82

Investment Banking Bank Banking Investment 82

Mergers and Inquisitions

JANUARY 10, 2024

If you want to read angry comments and long threads with plenty of insults, you can’t go wrong with the wealth management vs. investment banking debate. Some of these client differences relate to the distinction between private wealth management and private banking; for more on that, you should review the the private banking article.

Investment Banking 59

Investment Banking Management Bank Banking 59

Mergers and Inquisitions

NOVEMBER 15, 2023

I’ve now been writing about finance careers for almost 20 years, and the topic of the CFA for investment banking never seems to die. Financial Modeling or Python / Data Science / AI: Starting in 2024, you must complete a “Practical Skill Module” on one of these topics for Levels I and II of the exam.

CFA 59

CFA Investment Banking Banking Bank 59

OfficeHours

AUGUST 20, 2023

Private equity involves investing capital directly into private businesses that are not publicly traded on stock exchanges (that would be a hedge fund). During the hold period, the private equity firm can improve operations, management structure, and financial strategies to optimize the business.

Private Equity 130

Private Equity Equities Investment Banking Finance 130

Wizenius

JUNE 25, 2023

As an investment banking analyst, the selection of comparable companies for a valuation analysis is a crucial task that requires careful consideration and justification. Review Financial Similarity: Assess the financial characteristics of potential comparable companies. Start your journey towards success today!

Valuation 52

Valuation Financial Modeling Financial Models Investment Banking 52

Mergers and Inquisitions

MARCH 13, 2024

Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms. 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.

Private Equity 105

Private Equity Equities Capital Portfolio 105

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

Wizenius

AUGUST 16, 2023

For more complex transactions, especially those involving significant capital, external audit and legal firms might be enlisted. 6) Investor Relations: Sustaining a steady stream of capital for future investments is crucial for PE firms. Looking for the best investment banking course in India?

Private Equity 52

Private Equity Equities Investment Banking Financial Modeling 52

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. Many search fund founders are relatively young (35-40 or less) and come from banking, consulting, or general management backgrounds; many also have MBAs.

Private Equity 52

Private Equity Investment Banking Funds Equities 52

OfficeHours

JUNE 12, 2023

At the junior level, running the model and valuation analyses will be one of your primary workstreams as a private equity professional. If you were part of a finance or investment club in college, you can definitely highlight that experience to show that you have the investing mindset that it takes to succeed in private equity.

Private Equity 147

Private Equity Equities Investment Valuation 147

Mergers and Inquisitions

MARCH 13, 2023

If you are currently breathing oxygen, you’ve undoubtedly seen the stories about Silicon Valley Bank’s collapse over the past few days. It’s the second-biggest bank failure in U.S. history and the largest bank to collapse since 2008. And the impact on the banking industry , venture capital, and startups.

Bank 123

Bank Banking Funds Government 123

Mergers and Inquisitions

AUGUST 16, 2023

As with investment banking in Hong Kong , I can summarize private equity in China in one sentence: “If you’re not Chinese, don’t even think about it, and even if you are Chinese, it’s best if you have great connections within the CCP and want to stay in China long-term.” is better for domestic funds.

Private Equity 94

Private Equity Equities Recruitment Funds 94

MergersCorp M&A International

JANUARY 18, 2024

With years of experience in the investment banking and finance industry, the firm has built a formidable reputation for its expertise and ability to guide businesses through the intricate process of M&A. When it comes to M&A, international finance plays a crucial role in ensuring the success of the transaction.

M&A 52

M&A Consulting Mergers and Acquisitions Finance 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. These funds are usually multi-strategy as well. These funds are usually multi-strategy as well. What Do You Do as a Multi-Manager Hedge Fund Analyst?

Funds 104

Funds Management Recruitment Portfolio 104

Mergers and Inquisitions

MAY 3, 2023

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). But people who aim for investment banking roles are very much into those bells and whistles, so questions about the DDM and other “exotic” methodologies began rolling in.

Valuation 64

Valuation DCF Debt Financial Modeling 64

Wall Street Mojo

JANUARY 17, 2024

Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series) –>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​ Financial Modeling & Valuation Course Bundle ​ ( 25+ hours of video tutorials with step by step McDonald’s Financial Model ).

Shares 52

Shares Financial Modeling Financial Models Profitability 52

Peak Frameworks

SEPTEMBER 12, 2023

Example: During the 2008 Financial Crisis, many financial models based on parametric VaR underpredicted potential losses, causing significant challenges. For Capital Allocation: Banks and financial institutions use VaR to determine the amount of capital they need to hold to cover potential losses.

Portfolio 52

Portfolio Private Equity Risk Management Finance 52

Wall Street Mojo

JANUARY 15, 2024

CDOs are considered highly astute financial instruments Financial Instruments Financial instruments are certain contracts or documents that act as financial assets such as debentures and bonds, receivables, cash deposits, bank balances, swaps, cap, futures, shares, bills of exchange, forwards, FRA or forward rate agreement, etc.

Debt 52

Debt Bank Banking Investors 52

Devensoft

AUGUST 22, 2023

The Enterprise Value Calculator: An Overview The Enterprise Value Calculator is a sophisticated tool designed to assess the true value of a company by considering its financial performance, market position, and growth potential. Financial Databases: Bloomberg, Capital IQ, FactSet, Thomson Reuters Eikon.

Valuation 52

Valuation M&A Utilities Mergers and Acquisitions 52

Mergers and Inquisitions

MAY 24, 2023

Special Situations – These funds focus on companies that are spinning off or divesting divisions, reorganizing, or otherwise going through more unusual changes (not just simple acquisitions or capital raises). Distressed / Restructuring – These funds invest in the debt or equity of distressed companies or ones entering the bankruptcy process.

Funds 64

Funds Investors Mergers and Acquisitions Mergers 64

Mergers and Inquisitions

JULY 19, 2023

More differences emerge when you compare long-only hedge funds to long-only asset management: Investment Analysis and Financial Modeling You complete similar analyses and financial models at any “fundamental” firm ( long/short equity , long-only, activist , event-driven , etc.).

Funds 52

Funds Asset Management Management Equities 52

Mergers and Inquisitions

SEPTEMBER 11, 2024

If there is one sector that has attracted even more hype than technology and TMT , it might just be renewable energy investment banking. But before jumping into the overall advantages and disadvantages, let’s start with the verticals and how banks are set up: Table Of Contents What is Renewable Energy Investment Banking?

Investment Banking 59

Investment Banking Banking Bank Investment 59

Mergers and Inquisitions

FEBRUARY 28, 2024

We can’t possibly cover them all in one article, so this one will focus on fundamental research at banks , primarily for investment-grade and high-yield bonds. the appropriate debt vs. equity mix, and additional capital needs over the next few quarters. power & utilities , FIG , or industrials ).

Equities 59

Equities Asset Management Debt Recruitment 59

Focus Investment Banking

DECEMBER 5, 2024

Commonly negotiated points that can delay a transaction include net working capital, non-compete clauses, employment security, and topics related to real estate, such as purchasing properties owned by the seller or new leases.

Business 52

Business Sale Negotiation Investors 52

Mergers and Inquisitions

JANUARY 31, 2024

In-depth analysis that might take days or weeks, such as a financial model with 1,000 rows in Excel to assess a biopharma company’s valuation. Tiger Global is another example of this issue: It started as a hedge fund but later expanded into private equity and venture capital , with different teams for each one.

Funds 59

Funds Management S&P Recruitment 59

Mergers and Inquisitions

JULY 3, 2024

That gave IB Analysts about a year to gain deal experience, learn financial modeling , and make sure they wanted to do the job. But that timeline crept up over time, slowing down only in “crisis periods,” such as in 2009 (financial crisis aftermath) and 2020 – 2021 (COVID). They just want the most motivated/hardcore candidates.

Recruitment 59

Recruitment Private Equity Equities Funds 59

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

Wall Street Mojo

JANUARY 16, 2024

Identifying and capitalizing on low-hanging fruit is a strategic approach to garnering early success and momentum in a business setting. To fulfil the first goal, the organization has to recruit new team members and purchase additional equipment, which would require some capital. Hence, the second one is the low-hanging fruit.

Financial Modeling 52

Financial Modeling Financial Models Business Valuation 52

How2Exit

JULY 3, 2023

While it may not be necessary to hire a business broker or investment bank right away, seeking advice from trusted sources such as Vistage groups, CPAs, or experienced entrepreneurs can help identify potential risks and navigate the complexities of the deal. However, the podcast also cautions against rushing into a sale.

Mergers and Acquisitions 130

Mergers and Acquisitions Business Negotiation Private Equity 130

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

APRIL 19, 2023

Metals & mining investment banking used to be a “sleepy” group. But let’s forget about the children temporarily and focus on the verticals, the drivers, deal examples, and the exit opportunities if you escape from the underground mines: What Is Metals & Mining Investment Banking?

Investment Banking 52

Investment Banking Banking Bank Investment 52

Mergers and Inquisitions

OCTOBER 11, 2023

While people obsess over investment banking and private equity, other sectors within finance, such as commercial real estate (CRE) , often go ignored. That’s a shame because “how to get into commercial real estate” is a much easier question than “ how to get into investment banking ” for many people.

Private Equity 101

Private Equity Investment Banking Debt Funds 101