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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. However, many people also use the term more broadly to refer to equity, debt, and advisory for infrastructure assets.
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!
When I started offering financialmodeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). This is wrong because all financialmodels must reflect the trade-off between getting paid today and investing in future growth.
Controllership: Maintain the company’s financial statements, including receivables and payables; make sure that transactions are accurately reflected (including issues such as whether to capitalize or expense certain items); make the CFO happy while also satisfying the auditors and tax authorities.
They over-complicated the financialmodel (e.g., minutiae about issues like OID for debt issuances ) and did not accurately represent a 1- or 2-hour case study. These topics are interesting but difficult to demonstrate in a video tutorial or article, so we’ll focus on the financialmodeling case here.
Part of the issue is that many different strategies fall within the “event-driven” category: merger arbitrage , activist investing , distressed investing, special situations, and more. Distressed / Restructuring – These funds invest in the debt or equity of distressed companies or ones entering the bankruptcy process.
Are you a business leader eyeing expansion through acquisitions or an investor weighing potential mergers? In this guide, we’ll demystify the process of leveraging the Enterprise Value Calculator, a robust tool that considers intricate financial factors to accurately gauge a company’s value.
Debt financing is much more common, and the GE firm is often the first institutional investor. Many of these firms use debt to fund deals, and they complete bolt-on acquisitions for portfolio companies. They do not use debt since they only make minority-stake investments. appeared first on Mergers & Inquisitions.
Complete a modeling test , such as a simple mergermodel , the Enterprise Value bridge calculation , valuation multiples, or credit stats and ratios in different scenarios. You should not expect a detailed financialmodeling test or other Excel work; these short case studies usually involve “back of the envelope” math.
Partially, it’s an issue of accessibility: Everyone understands what happens to the stock price if a company beats earnings… …but few people understand what it means if a company is set to violate a debt covenant on page 214 of its credit agreement. the appropriate debt vs. equity mix, and additional capital needs over the next few quarters.
Renewable Energy Investment Banking Definition: In renewable energy investment banking, bankers advise companies in the solar, wind, biofuel, storage, battery, smart grid, electric vehicle, hydrogen, hydroelectric, and carbon capture verticals on equity and debt issuances, asset deals, and mergers and acquisitions.
Ron Concept 1: Specializing In Business Acquisitions And Mergers Business acquisitions and mergers are complex processes that require careful planning, strategic decision-making, and expert guidance. The role of a business advisor in the context of acquisitions and mergers is multifaceted.
Look at any financialmodel for a bank, and you’ll see that loans – not deposits – are the key top-line driver. Remember that, normally, a bank issues loans and then finds the liabilities (deposits, debt, etc.) The post The Collapse of Silicon Valley Bank: The Start of Great Financial Crisis 2.0? to back them.
PE firms view these companies as especially appealing since low multiples mean they can use higher debt percentages to fund the acquisitions. This deal works because SYNLAB can afford to take on a huge amount of Debt and can likely repay it quickly – since its EBITDA was depressed at the time of this acquisition. If you have an M.D.
Normally on this site, I write about a mix of careers, sectors within finance, financialmodeling topics, and current events. Again, you could ask this same question in 2 sentences: “Quick question – with the financing fees, you’re not factoring in the refinanced debt if the acquirer repays and replaces the target’s debt.
Non-Equity Funds – Finally, it is difficult to “short” certain securities effectively, such as distressed debt and many types of credit (especially structured products ). Think: a deep review of companies’ financial statements, 3-statement models , and DCF-based valuations. appeared first on Mergers & Inquisitions.
November 15, 2023 Understanding and Unraveling the Difference: EBITDA and Adjusted EBITDA in Mergers and Acquisitions In the context of mergers and acquisitions, EBITDA and Adjusted EBITDA play a pivotal role in assessing the value and potential synergies of the target company.
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By contrast, investment banking is more about advising companies on transactions such as M&A deals , equity and debt deals , and restructuring. In wealth management, you advise the same clients over long periods , but in IB, you hop from deal to deal – though some groups do operate on more of a “client service” model.
In-depth analysis that might take days or weeks, such as a financialmodel with 1,000 rows in Excel to assess a biopharma company’s valuation. This is especially common in areas like distressed debt investing that depend heavily on catalysts. appeared first on Mergers & Inquisitions.
Sports Investment Banking Definition: In sports IB, bankers advise on equity and debt issuances, mergers, acquisitions, and restructuring deals for sports teams and leagues, sports-adjacent technology and services firms, and facilities such as arenas, stadiums, and racetracks. Can teams carry debt?
People are convinced that financialmodeling in equity research is vastly different from investment banking and that research requires different or more specialized skills. So, for example, quarterly financialmodels are more common in equity research, as are detailed bottoms-up models used in initiating coverage reports.
But it’s also important when a commercial real estate loan refinancing occurs, as the amount of new debt is based on the property’s value. Junior-level roles consist of real estate financialmodeling , reports and memos, due diligence, and meetings. For example, in the U.S.,
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