Biws - Study guides, Class notes & Summaries

Walk me through a basic LBO model - ANS "In an LBO Model, the first step is making some key assumptions about entry and exit multiple, leverage for the deal, interest rate on debt, and other variables. Next, you create a Sources & Uses section, which shows how you finance the transaction and how much sponsor equity is required. After that, you adjust the company's Balance Sheet for the new Debt and Equity figures, and also add in Goodwill & Other Intangibles on the Assets side to...

Are there any rules about filtering out deals for less than 100% of companies or about stock vs. cash deals in Precedent Transactions? - answer-- precedent Transactions will include ONLY 100% acquisition deals - may need to include majority stake deals: ones where the acquirer buys more than 50% but less than 100% of another company - do NOT include minority stake deals: less than 50% - include all deals REGARDLESS of stock vs. cash consideration Are there any screens you should AVOID when...

BIWS 400 Questions with complete solution 2023 Let's say I'm working on an IPO for a client. Can you describe briefly what I would do? - correct answer You meet with the client and gather basic information - such as their financial details, an industry overview, and who their customers are. You meet with other bankers and the lawyers to draft the S-1 registration statement - which describes the company's business and markets it to investors. You receive some comments from the SEC and kee...

success story Econ 381 failure story MMSS 00:12 01:11 leadership story YPIE Book Drive 3 strengths curious (Collab), strong work ethic (Grosvenor/Classes/Rush), good problem solver (budgeting A&O, like to address any issues IMMEDIATELY) 3 weaknesses Perfectionist to a fault (often take too long to complete tasks because of this), Impatient (when things take long and are out of my control i sometimes get distracted), overly loyal (root for the mets jets an...

BIWS 400 Questions with complete solution 2023You've never worked in finance before. How much do you know about what bankers actually do? I've done a lot of research on my own. Based on that, I know that bankers advise companies on transactions - buying and selling other companies, and raising capital. They are "agents" that connect a company with the appropriate buyer, seller, or investor. The day-to-day work involves creating presentations, financial analysis and marketing materials suc...

BIWS 400 Questions with complete solution 2023Let's say I'm working on an IPO for a client. Can you describe briefly what I would do? You meet with the client and gather basic information - such as their financial details, an industry overview, and who their customers are. You meet with other bankers and the lawyers to draft the S-1 registration statement - which describes the company's business and markets it to investors. You receive some comments from the SEC and keep revising the documen...

Why would one company want to buy another company? : A company might want to buy another company if it is looking to expand its market share, product offerings, customer base and distribution channels. Through expanding in these ways, the company expects to increase its EPS and that the investment will generate returns greater than its WACC to fund the transaction. The buyer might also be looking to consolidate and cut costs through acquiring another company. Sometimes, an acquisition w...

BIWS 400 QUESTIONS WITH COMPLETE SOLUTION 2023BIWS 400 QUESTIONS WITH COMPLETE SOLUTION 2023 Let's say I'm working on an IPO for a client. Can you describe briefly what I would do? - correct answer You meet with the client and gather basic information - such as their financial details, an industry overview, and who their customers are. You meet with other bankers and the lawyers to draft the S-1 registration statement - which describes the company's business and markets it to investors. Yo...

What are the 3 major valuation methodologies? Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Rank the 3 valuation methodologies from highest to lowest expected value. Trick question - there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions. Beyond that, a DCF could go either way and it's best to say that it's more variable than other methodo...

Walk me through a basic LBO model. "In an LBO Model, Step 1 is making assumptions about the Purchase Price, Debt/Equity ratio, Interest Rate on Debt and other variables; you might also assume something about the company's operations, such as Revenue Growth or Margins, depending on how much information you have. Step 2 is to create a Sources & Uses section, which shows how you finance the transaction and what you use the capital for; this also tells you how much Investor Equity is required...