Investment Banking

Course Materials

SESSION 1 - INTRODUCTION AND FINANCIAL STATEMENT ANALYSIS

1. Introduction of Banker/Instructor
2. Discussion of Syllabus
3. Introduction of Students and their Desired Goals
4. Financial Markets Overview
5. What are the Investment Banks & Private Equity Firms looking for in a potential candidate?
6. SEBI Filings, including Annual Reports and Quarterly Reports
7. Historical - Income Statement, Balance Sheet and Cash Flow
8. Financial Statement Analysis (Ratio Analysis)

SESSION 2 - COMPREHENSIVE VALUATION ANALYSIS

1. Why do we value companies?
2. Difference between Book Value and Market Value
3. Understanding Equity Value vs. Enterprise Value (EV)
4. The three (3) Generally Accepted Valuation Methodologies
   1. Discounted Cash Flow Analysis (DCF)
   2. Trading Multiples
   3. Precedent Transactions
5. Spreading Comps
6. Combining all three (3) Valuation Methodologies

SESSIONS 3 - 4 - INTEGRATED CASH FLOW MODELING

1. Uses for a Financial Model on Sell-side and Buy-side
2. Tips for Setting up a Financial Model
3. Spreading Historic Financial Statements
4. Deriving Historic Ratios, Trends and Variables
5. Creating Five Year Projections for Income Statement, Balance Sheet and Cash Flow
6. Debt and Interest Schedule
7. Integration of Projected Income Statement, Balance Sheet and Cash Flow
8. Revolver Modeling
9. Sensitivities on Financial Model

SESSIONS 4 - 6 - COMPLETE LBO MODELING

1. Uses for An LBO Model on Sell-side and Buy-side
2. Review of LBO Model Structure
   1. Purchase Price Calculations and Considerations
   2. Capital Structure Options / Reviews
   3. Discussion of Typical Financing Sources for LBO
   4. Creation of a Sources and Uses Worksheet
   5. Proforma Income Statement, Balance Sheet, Cash Flow
   6. Goodwill Calculation
   7. Integration of Income Statement, Balance Sheet, Cash Flow
   8. Debt and Interest Schedule
   9. Revolver and mandatory / option debt prepayment and impact on returns
   10. Returns Analysis - IRR on debt, hybrid instruments and equity investments
3. Sensitivities on LBO model and Return Analyses

SESSIONS 6 - 7 - MERGER (ACQUISITION) MODELING

1. Uses for a Merger Model
2. How to build a Merger Model
   1. Calculation of Equity Value and Purchase Price
   2. Explanation of Consideration in Purchase (stock, cash, assumed debt)
   3. Discussion of Multiples Paid
   4. Post-Merger Control Issues
   5. Synergies and pre-tax Synergies required to Breakeven
   6. Revenue and EBITDA contribution
   7. Proforma Income Statement
   8. EPS Dilution for Acquirer
   9. Discussion of Goodwill and other accounting treatment issues
   10. Sensitivities

SESSION 8 - INVESTMENT BANKING PROCESS AND BEST PRACTICES, INTERVIEW SKILLS AND RESUME REVISION

1. Conclusion of Financial Modeling
2. Investment Banking Process
   1. M&A and Private Placement
      1. Investment Bank
      2. Industry Overview
      3. Market Overview
      4. Client
      5. Valuation
      6. Process
      7. Buyer/Investor Descriptions ii.
   2. Financing
      1. Investment Bank
      2. Industry Overview
      3. Market Overview
      4. Client – Positioning
      5. IPO Valuation
      6. Marketing
      7. Pitch Process
   3. Sell-side Process
      1. M&A Process
      2. Private Placement
3. Career Resources
   1. Guidelines for resume writing, structured for Investment Banking & Private Equity positions
   2. Skills acquired through AustalEducation incorporated on student's resume
   3. Top interview questions and questions to ask interviewer
   4. Investment Banking & Private Equity specific insight
   5. What we looked for when hiring analysts and associates
   6. Examples of rewritten resumes, incl. proper format/style