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Equity Research vs. Investment Banking: Careers, Compensation, Exits, and AI/Automation Risk

Mergers and Inquisitions

We sometimes get questions about why we dont offer an equity research course. People are convinced that financial modeling in equity research is vastly different from investment banking and that research requires different or more specialized skills. IB is all about deals , while ER is all about coverage.

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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

As I mentioned in my last post, Discounted Cash Flow (DCF) is a valuation method that uses free cash flow projections, a discount rate, and a growth rate to find the present value estimate of a potential investment. Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC).

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M&A Blog #15 – valuation (tools and data preparation)

Francine Way

The specific tools and data required for the analysis is determined by the type of valuation method used in the analysis. I will discuss general tools and credible sources of information that a valuation professional can use for the analysis. Inexpensive Excel-plugin simulator such as @RISK are available for download online.

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Understanding the Impact of Interest Rates on Private Equity and Business Valuations

Focus Investment Banking

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. For private equity (PE) groups, these rates determine the cost of capital, which is essential for their investment strategies.

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Buy Side M&A Blog Series - Vol 7 - Valuing The Target

RKJ Partners

As a part of the buy-side M&A process, once a buyer selects and decides to pursue an acquisition target, it is essential to reach a level of comfort that the business for sale has a reasonable chance of being successfully acquired. What is Valuation? Valuing a company is not a precise exercise, and best described as an art not a science.

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Power-Up Your Resume: Essential Investment Banking Keywords

Wizenius

M&A (Merger and Acquisitions): As an investment banking professional, showcasing your experience and knowledge in mergers and acquisitions (M&A) is crucial. Highlight any involvement in M&A transactions, such as due diligence, financial analysis, deal structuring, or client advisory. Let's dive in!

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Determining Discount Rate for Companies with Negative Initial Cash Flows and Future Growth

Wizenius

The WACC considers the cost of debt and equity financing and reflects the risk associated with the company's capital structure. Adjustments for Negative Cash Flows: Incorporate adjustments in the DCF analysis to account for the negative cash flows in the initial years.