Franklin

Investment Banking for Dummies.

Author/Creator:
Krantz, Matthew.
Publication:
Newark : John Wiley & Sons, Incorporated, 2020.
Format/Description:
Book
1 online resource (403 pages)
Edition:
2nd ed.
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Form/Genre:
Electronic books.
Contents:
Intro
Title Page
Copyright Page
Table of Contents
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Part 1 Getting Started with Investment Banking
Chapter 1 Introducing Investment Banking
What Investment Banking Is
The role investment banking plays
How investment banking differs from traditional banking
The services investment banks provide
How investment banks are organized
The current lay of the investment banking land
Types of investment banking operations
How investment banks get paid
How Investment Banking Is Done
Finding the financial statements
Understanding the importance of financial statements and ratios
Zeroing in on past transactions
Seeing the value of fixed income
Turning Into an Investment Banking Pro
Putting the discounted cash flow analysis to work
Seeing how leverage becomes a force in investment banking
Pinpointing buyout targets
Putting Investment Banking to Work
Staying in compliance with the rules
Looking beyond the published financial statements
Making adjustments to financial statements for comparability
Chapter 2 The Purpose of Investment Banking: What Investment Bankers Do
Putting the For-Sale Sign on Corporate America
Mergers and acquisitions
Leveraged buyouts
Private business sales
Initial public offerings
Helping Investors Decide Whether to Buy or Sell
The importance of research
What do the analysts do?
Digging Into the Role of the Trading Desk
Why investment banks are into trading
How investment banks turn pennies into billions
The type of analysis used in trading operations
Chapter 3 How Investment Bankers Sell Companies
Getting Companies Ready for Sale on Public Markets.
Meeting the requirements to make an IPO happen
Writing the prospectus
Supporting the IPO: Making success last
Seeing What Sell-Side Analysts Do
The goals of the sell-side analyst
What investors look to sell-side analysts for
Spreading the word: Disseminating sell-side research
Examining a Sample Research Report
What to look for in the document
The main sections of a research report
Ways to look beyond the "buy" or "sell"
Chapter 4 How Investment Banking Is Used in Mergers and Acquisitions
Come Here Often? The Basics of Mergers and Acquisitions
Kinds of mergers
Why companies merge instead of simply growing organically
Firms that make attractive acquisition targets
How companies identify firms to merge with
The nature of the merger: Friendly or hostile?
Tools Used to Analyze the M&
A Deal
The role of the buy-side M&
A advisor
The role of the sell-side M&
A advisor
Why Many M&
A Deals Go Wrong
Misplaced incentives
Faulty analysis
Overstated synergies
Culture wars
The winner's curse: Overpaying
Chapter 5 How Investment Banking Is Used in Leveraged Buyouts
In This Corner: Introducing the Players
Investment banks
Big institutions
Management
Stock and bond investors
Aiming for the Right Targets in a Leveraged Buyout
Identifying companies that can work in a leveraged buyout
Appreciating the power of cash flow
Coming to terms with the return analysis: Internal rate of return
Finding the Exit
Setting a target for exit in time
Considering how the exit will happen
Part 2 Digging In: Performing Investment Banking
Chapter 6 Finding the Data: Documents and Reports
Finding What You Need on the Securities and Exchange Commission's Website
What types of information you can find
The key types of documents.
How to use EDGAR to pinpoint information
Getting Data in a Format You Can Work With
Assembling the tools you need
Importing financial information into Excel
Getting in tune with interactive data
Paying Attention to the Non-Financial Information
Monitoring news streams for investment banking ideas
Quickly processing information with aggregators
Doing research on the key players in a deal
Chapter 7 Making Sense of Financial Statements
Income Statements
Locating the areas of interest to investment bankers
Tweaking the statement with different assumptions
Finding investment banking opportunities
Balance Sheets
Finding your way around the key parts
Understanding a company's financial strength
Locating pitfalls and opportunities
Statement of Cash Flows
Seeing why the cash flow statement is so important in deal making
Understanding the key parts of the document
Calculating free cash flow
Proxy Statements
Learning about the key players in a deal
Identifying the management team's incentives
Analyzing management pay packages
Chapter 8 Perfecting the Financial Ratios for Investment Banking
Valuation Multiples: Assessing How Much the Company Is Worth
Investors' favorite valuation tool: P/E ratio
Going old school with price-to-book
Putting a price on profitability
Liquidity Multiples: Checking Companies' Staying Power
Deciphering debt to equity
Getting up to speed with the quick ratio
Interpreting interest coverage
Profitability Ratios: Seeing How a Company's Bottom Line Measures Up
Why gross margin isn't so gross after all
Income from continuing operations: Looking at profit with a keen eye
Keying into profits with net margin
Efficiency Ratios: Knowing How Well the Company Is Using Investors' Money
Finding out about return on assets.
Digging into return on capital
Uncovering company secrets with return on equity
Calculating a company's growth rate
Chapter 9 Sizing Up the Industry
Performing an Industry Analysis
Understanding why industry analysis is important
Creating a comparison universe
Adjusting the industry comparison universe
Unearthing Company Trends and Common sizing the Financial Statements
Comparing growth rates
Comparing leverage
Comparing various profit margins
How a Company Stacks Up: Comparing the Key Ratios
Sizing up valuation
Comparing total debt-to-equity
Sizing up companies on their efficiency
Industry ratios
Chapter 10 Understanding Stocks and Focusing on Past Transactions
Introducing Stock
Characteristics of stock
Types of stock
Understanding stock pricing
Finding Past Transactions
Tracking the stock market
Studying private deals
Looking at pre-IPO marketplaces
Examining buyouts
Analyzing Past Transactions
Knowing what the market will bear
Knowing when the market is distorted
Tabulating key ratios for past deals
Understanding the pitfalls
Chapter 11 Applying Investment Banking to Fixed Income
Introducing Bonds
Identifying the Various Types of Bonds
Convertible bonds
Callable bonds
Puttable bonds
Floating-rate bonds
Zero-coupon bonds
Knowing Their Place: The Position of Bondholders
Understanding Bond Pricing
Introducing the concept of present value
Relating yield to maturity and price
Playing the spread: How different factors affect bond prices
Considering bond sensitivity to changes in interest rates
Tracking the Bond Market
Debt or Equity: How a Company Chooses
Part 3 Taking Investment Banking to the Next Level
Chapter 12 Doing a Discounted Free Cash Flow Analysis
Gearing Up for Discounted Free Cash Flow.
Computing free cash flow
Forecasting free cash flow
Calculating the Weighted Average Cost of Capital
Understanding why the weighted average cost of capital is so important
Measuring the cost of debt and equity
Understanding the capital asset pricing model
Going for Terminal Value
Knowing the perpetuity growth formula
Applying the constant growth formula
Applying the two-stage growth model
Stress-testing the results
Valuing a Share of Stock
Chapter 13 Structuring a Leveraged Buyout
Seeing How Leveraged Buyouts Are Structured
The types of financing
Understanding seniority and maturity
Building a Leveraged Buyout Model
Creating a pro forma model
Deciding on methods of financing
Seeing how the results work out
The importance of taxes in a leveraged buyout
What can go right and what can go wrong
Chapter 14 Determining the Strength of a Company's Return on Equity
Understanding the Importance of Return on Equity
What return on equity shows
Pros and cons of return on equity versus other profitability measures
How return on equity can help guide an investment banking deal
Using a DuPont Analysis
The three-factor DuPont method
The five-factor DuPont method
Interpreting the Results
Cola wars
What the numbers mean
Looking past the numbers for insight
Telling companies how to react to the numbers
Part 4 Applying Investment Banking
Chapter 15 Knowing the Rules
The History of Regulation of Investment Banking
The goals of investment banking regulation
Why the rules of today are the result of days past
How regulations have shaped the investment banking industry
The Ins and Outs of Modern Investment Banking Rules
The types of rules imposed on investment banking
How investment banking rules changed after the financial crisis.
The Rules on Analysts.
Notes:
Description based on publisher supplied metadata and other sources.
Contributor:
Johnson, Robert R.
ISBN:
1-119-65870-5
OCLC:
1148868864