{"product_id":"investment-banking-isbn-9781119867876","title":"Investment Banking","description":"\u003cp\u003e\u003cb\u003eAn essential, all-in-one guide to investment banking and valuation, complete with downloadable models – this new edition reflects valuable contributions from Nasdaq and the global law firm Latham \u0026amp; Watkins LLP plus access to the online valuation models and course.\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eThe thoroughly revised Third Edition of \u003ci\u003eInvestment Banking: Valuation, LBOs, M\u0026amp;A, and IPOs (Book + Valuation Models)\u003c\/i\u003e delivers the most current discussion of valuation and deal-making fundamentals essential to the work of investment bankers, private equity professionals, hedge fund investors, corporate lawyers, executives, and students. Drawing on over four decades of combined experience in investment banking and investing, authors Joshua Rosenbaum and Joshua Pearl explain how to perform the valuation work and financial analysis at the core of Wall Street – comparable companies, precedent transactions, DCF, LBO, M\u0026amp;A analysis...and now IPO analytics and valuation. Using a step-by-step, how-to approach for each methodology, the authors build a chronological knowledge base and define key terms, financial concepts, and processes throughout the book. \u003c\/p\u003e\u003cp\u003eNow, over 10 years after the release of the first edition, the book is more relevant and topical than ever. The book has sold over 250,000 copies and is used in over 200 universities globally. It has become a go-to resource for investment banks, private equity, investment firms, and corporations undertaking M\u0026amp;A transactions, LBOs, IPOs, restructurings, and investment decisions. While the fundamentals haven't changed, the environment must adapt to changing market developments and conditions. As a result, Rosenbaum and Pearl have updated their widely-adopted book accordingly, turning the latest edition into a unique and comprehensive training package. \u003c\/p\u003e\u003cp\u003eThe Third Edition includes six downloadable valuation model templates: Comparable Companies Analysis, Precedent Transactions Analysis, Discounted Cash Flow Analysis, Leveraged Buyout Analysis, M\u0026amp;A Analysis, and IPO Valuation, available at www.wiley.com\/go\/investmentbanking3e. \u003c\/p\u003e\u003cp\u003eAdditional Resources xv\u003c\/p\u003e \u003cp\u003eAbout the Authors xvii\u003c\/p\u003e \u003cp\u003eForeword xxi\u003c\/p\u003e \u003cp\u003eAcknowledgments xxiii\u003c\/p\u003e \u003cp\u003eDisclaimer xxxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIntroduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStructure of the Book 3\u003c\/p\u003e \u003cp\u003ePart One: Valuation (Chapters 1–3) 3\u003c\/p\u003e \u003cp\u003ePart Two: Leveraged Buyouts (Chapters 4 \u0026amp; 5) 5\u003c\/p\u003e \u003cp\u003ePart Three: Mergers \u0026amp; Acquisitions (Chapters 6 \u0026amp; 7) 6\u003c\/p\u003e \u003cp\u003ePart Four: Initial Public Offerings (Chapters 8 \u0026amp; 9) 8\u003c\/p\u003e \u003cp\u003eValueCo Summary Financial Information 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One Valuation 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Comparable Companies Analysis 13\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary of Comparable Companies Analysis Steps 14\u003c\/p\u003e \u003cp\u003eStep I. Select the Universe of Comparable Companies 17\u003c\/p\u003e \u003cp\u003eStudy the Target 17\u003c\/p\u003e \u003cp\u003eIdentify Key Characteristics of the Target for Comparison Purposes 18\u003c\/p\u003e \u003cp\u003eScreen for Comparable Companies 22\u003c\/p\u003e \u003cp\u003eStep II. Locate The Necessary Financial Information 23\u003c\/p\u003e \u003cp\u003eSEC Filings: 10-K, 10-Q, 8-K, and Proxy Statement 24\u003c\/p\u003e \u003cp\u003eEquity Research 25\u003c\/p\u003e \u003cp\u003ePress Releases and News Runs 26\u003c\/p\u003e \u003cp\u003eFinancial Information Services 26\u003c\/p\u003e \u003cp\u003eSummary of Financial Data Primary Sources 27\u003c\/p\u003e \u003cp\u003eStep III. Spread Key Statistics, Ratios, and Trading Multiples 28\u003c\/p\u003e \u003cp\u003eCalculation of Key Financial Statistics and Ratios 28\u003c\/p\u003e \u003cp\u003eSupplemental Financial Concepts and Calculations 42\u003c\/p\u003e \u003cp\u003eCalculation of Key Trading Multiples 47\u003c\/p\u003e \u003cp\u003eStep IV. Benchmark the Comparable Companies 50\u003c\/p\u003e \u003cp\u003eBenchmark the Financial Statistics and Ratios 50\u003c\/p\u003e \u003cp\u003eBenchmark the Trading Multiples 50\u003c\/p\u003e \u003cp\u003eStep V. Determine Valuation 51\u003c\/p\u003e \u003cp\u003eValuation Implied by EV\/EBITDA 52\u003c\/p\u003e \u003cp\u003eValuation Implied by P\/E 52\u003c\/p\u003e \u003cp\u003eKey Pros and Cons 54\u003c\/p\u003e \u003cp\u003eIllustrative Comparable Companies Analysis for ValueCo 55\u003c\/p\u003e \u003cp\u003eStep I. Select the Universe of Comparable Companies 55\u003c\/p\u003e \u003cp\u003eStep II. Locate the Necessary Financial Information 57\u003c\/p\u003e \u003cp\u003eStep III. Spread Key Statistics, Ratios, and Trading Multiples 57\u003c\/p\u003e \u003cp\u003eStep IV. Benchmark the Comparable Companies 69\u003c\/p\u003e \u003cp\u003eStep V. Determine Valuation 74\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Precedent Transactions Analysis 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary of Precedent Transactions Analysis Steps 76\u003c\/p\u003e \u003cp\u003eStep I. Select the Universe of Comparable Acquisitions 79\u003c\/p\u003e \u003cp\u003eScreen for Comparable Acquisitions 79\u003c\/p\u003e \u003cp\u003eExamine Other Considerations 80\u003c\/p\u003e \u003cp\u003eStep II. Locate the Necessary Deal-Related and Financial Information 82\u003c\/p\u003e \u003cp\u003ePublic Targets 82\u003c\/p\u003e \u003cp\u003ePrivate Targets 85\u003c\/p\u003e \u003cp\u003eSummary of Primary SEC Filings in M\u0026amp;A Transactions 86\u003c\/p\u003e \u003cp\u003eStep III. Spread Key Statistics, Ratios, and Transaction Multiples 88\u003c\/p\u003e \u003cp\u003eCalculation of Key Financial Statistics and Ratios 88\u003c\/p\u003e \u003cp\u003eCalculation of Key Transaction Multiples 94\u003c\/p\u003e \u003cp\u003eStep IV. Benchmark the Comparable Acquisitions 98\u003c\/p\u003e \u003cp\u003eStep V. Determine Valuation 98\u003c\/p\u003e \u003cp\u003eKey Pros and Cons 99\u003c\/p\u003e \u003cp\u003eIllustrative Precedent Transaction Analysis for ValueCo 100\u003c\/p\u003e \u003cp\u003eStep I. Select the Universe of Comparable Acquisitions 100\u003c\/p\u003e \u003cp\u003eStep II. Locate the Necessary Deal-Related and Financial Information 101\u003c\/p\u003e \u003cp\u003eStep III. Spread Key Statistics, Ratios, and Transaction Multiples 103\u003c\/p\u003e \u003cp\u003eStep IV. Benchmark the Comparable Acquisitions 111\u003c\/p\u003e \u003cp\u003eStep V. Determine Valuation 113\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Discounted Cash Flow Analysis 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary of Discounted Cash Flow Analysis Steps 116\u003c\/p\u003e \u003cp\u003eStep I. Study the Target and Determine Key Performance Drivers 120\u003c\/p\u003e \u003cp\u003eStudy the Target 120\u003c\/p\u003e \u003cp\u003eDetermine Key Performance Drivers 120\u003c\/p\u003e \u003cp\u003eStep II. Project Free Cash Flow 121\u003c\/p\u003e \u003cp\u003eConsiderations for Projecting Free Cash Flow 121\u003c\/p\u003e \u003cp\u003eProjection of Sales, EBITDA, and EBIT 123\u003c\/p\u003e \u003cp\u003eProjection of Free Cash Flow 125\u003c\/p\u003e \u003cp\u003eStep III. Calculate Weighted Average Cost of Capital 131\u003c\/p\u003e \u003cp\u003eStep III(a): Determine Target Capital Structure 132\u003c\/p\u003e \u003cp\u003eStep III(b): Estimate Cost of Debt (rd) 133\u003c\/p\u003e \u003cp\u003eStep III(c): Estimate Cost of Equity (re) 134\u003c\/p\u003e \u003cp\u003eStep III(d): Calculate WACC 138\u003c\/p\u003e \u003cp\u003eStep IV. Determine Terminal Value 138\u003c\/p\u003e \u003cp\u003eExit Multiple Method 139\u003c\/p\u003e \u003cp\u003ePerpetuity Growth Method 139\u003c\/p\u003e \u003cp\u003eStep V. Calculate Present Value and Determine Valuation 141\u003c\/p\u003e \u003cp\u003eCalculate Present Value 141\u003c\/p\u003e \u003cp\u003eDetermine Valuation 143\u003c\/p\u003e \u003cp\u003ePerform Sensitivity Analysis 145\u003c\/p\u003e \u003cp\u003eKey Pros and Cons 146\u003c\/p\u003e \u003cp\u003eIllustrative Discounted Cash Flow Analysis for ValueCo 147\u003c\/p\u003e \u003cp\u003eStep I. Study the Target and Determine Key Performance Drivers 147\u003c\/p\u003e \u003cp\u003eStep II. Project Free Cash Flow 147\u003c\/p\u003e \u003cp\u003eProjection of Sales, EBITDA, and EBIT 149\u003c\/p\u003e \u003cp\u003eStep III. Calculate Weighted Average Cost of Capital 154\u003c\/p\u003e \u003cp\u003eStep IV. Determine Terminal Value 159\u003c\/p\u003e \u003cp\u003eStep V. Calculate Present Value and Determine Valuation 161\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Leveraged Buyouts 167\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Leveraged Buyouts 169\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey Participants 171\u003c\/p\u003e \u003cp\u003eFinancial Sponsors 171\u003c\/p\u003e \u003cp\u003eInvestment Banks 172\u003c\/p\u003e \u003cp\u003eBank and Institutional Lenders 174\u003c\/p\u003e \u003cp\u003eBond Investors 175\u003c\/p\u003e \u003cp\u003ePrivate Credit Funds 176\u003c\/p\u003e \u003cp\u003eTarget Management 176\u003c\/p\u003e \u003cp\u003eCharacteristics of a Strong LBO Candidate 177\u003c\/p\u003e \u003cp\u003eStrong Cash Flow Generation 178\u003c\/p\u003e \u003cp\u003eLeading and Defensible Market Positions 178\u003c\/p\u003e \u003cp\u003eGrowth Opportunities 178\u003c\/p\u003e \u003cp\u003eEfficiency Enhancement Opportunities 179\u003c\/p\u003e \u003cp\u003eLow Capex Requirements 179\u003c\/p\u003e \u003cp\u003eStrong Asset Base 180\u003c\/p\u003e \u003cp\u003eProven Management Team 180\u003c\/p\u003e \u003cp\u003eEconomics of LBOs 181\u003c\/p\u003e \u003cp\u003eReturns Analysis—Internal Rate of Return 181\u003c\/p\u003e \u003cp\u003eReturns Analysis—Cash Return 182\u003c\/p\u003e \u003cp\u003eHow LBOs Generate Returns 182\u003c\/p\u003e \u003cp\u003eHow Leverage Is Used to Enhance Returns 184\u003c\/p\u003e \u003cp\u003ePrimary Exit\/Monetization Strategies 187\u003c\/p\u003e \u003cp\u003eSale of Business 187\u003c\/p\u003e \u003cp\u003eInitial Public Offering 188\u003c\/p\u003e \u003cp\u003eDividends \/ Dividend Recapitalization 188\u003c\/p\u003e \u003cp\u003eBelow Par Debt Repurchase 188\u003c\/p\u003e \u003cp\u003eLBO Financing: Structure 189\u003c\/p\u003e \u003cp\u003eLBO Financing: Primary Sources 192\u003c\/p\u003e \u003cp\u003eSecured Debt 192\u003c\/p\u003e \u003cp\u003eHigh Yield Bonds 196\u003c\/p\u003e \u003cp\u003eMezzanine Debt 198\u003c\/p\u003e \u003cp\u003eEquity Contribution 199\u003c\/p\u003e \u003cp\u003eLBO Financing: Selected Key Terms 202\u003c\/p\u003e \u003cp\u003eSecurity 202\u003c\/p\u003e \u003cp\u003eSeniority 202\u003c\/p\u003e \u003cp\u003eMaturity 203\u003c\/p\u003e \u003cp\u003eCoupon 204\u003c\/p\u003e \u003cp\u003eCall Protection 205\u003c\/p\u003e \u003cp\u003eCovenants 206\u003c\/p\u003e \u003cp\u003eTerm Sheets 209\u003c\/p\u003e \u003cp\u003eLBO Financing: Determining Financing Structure 212\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 LBO Analysis 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancing Structure 217\u003c\/p\u003e \u003cp\u003eValuation 218\u003c\/p\u003e \u003cp\u003eStep I. Locate and Analyze the Necessary Information 220\u003c\/p\u003e \u003cp\u003eStep II. Build the Pre-LBO Model 220\u003c\/p\u003e \u003cp\u003eStep II(a): Build Historical and Projected Income Statement through EBIT 221\u003c\/p\u003e \u003cp\u003eStep II(b): Input Opening Balance Sheet and Project Balance Sheet Items 224\u003c\/p\u003e \u003cp\u003eStep II(c): Build Cash Flow Statement through Investing Activities 226\u003c\/p\u003e \u003cp\u003eOperating Activities 226\u003c\/p\u003e \u003cp\u003eStep III. Input Transaction Structure 229\u003c\/p\u003e \u003cp\u003eStep III(a): Enter Purchase Price Assumptions 229\u003c\/p\u003e \u003cp\u003eStep III(b): Enter Financing Structure into Sources and Uses 231\u003c\/p\u003e \u003cp\u003eStep III(c): Link Sources and Uses to Balance Sheet Adjustments Columns 232\u003c\/p\u003e \u003cp\u003eUses of Funds Links 235\u003c\/p\u003e \u003cp\u003eStep IV. Complete the Post-LBO Model 238\u003c\/p\u003e \u003cp\u003eStep IV(a): Build Debt Schedule 238\u003c\/p\u003e \u003cp\u003eStep IV(b): Complete Pro Forma Income Statement from EBIT to Net Income 247\u003c\/p\u003e \u003cp\u003eStep IV(c): Complete Pro Forma Balance Sheet 250\u003c\/p\u003e \u003cp\u003eStep IV(d): Complete Pro Forma Cash Flow Statement 252\u003c\/p\u003e \u003cp\u003eStep V. Perform LBO Analysis 254\u003c\/p\u003e \u003cp\u003eStep V(a): Analyze Financing Structure 254\u003c\/p\u003e \u003cp\u003eStep V(b): Perform Returns Analysis 256\u003c\/p\u003e \u003cp\u003eStep V(c): Determine Valuation 260\u003c\/p\u003e \u003cp\u003eStep V(d): Create Transaction Summary Page 261\u003c\/p\u003e \u003cp\u003eIllustrative LBO Analysis for ValueCo 262\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Mergers \u0026amp; Acquisitions 273\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Sell-Side M\u0026amp;A 275\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAuctions 276\u003c\/p\u003e \u003cp\u003eAuction Structure 279\u003c\/p\u003e \u003cp\u003eOrganization and Preparation 279\u003c\/p\u003e \u003cp\u003eIdentify Seller Objectives and Determine Appropriate Sale Process 279\u003c\/p\u003e \u003cp\u003ePerform Sell-Side Advisor Due Diligence and Preliminary Valuation Analysis 281\u003c\/p\u003e \u003cp\u003eSelect Buyer Universe 281\u003c\/p\u003e \u003cp\u003ePrepare Marketing Materials 282\u003c\/p\u003e \u003cp\u003ePrepare Confidentiality Agreement 285\u003c\/p\u003e \u003cp\u003eFirst Round 286\u003c\/p\u003e \u003cp\u003eContact Prospective Buyers 286\u003c\/p\u003e \u003cp\u003eNegotiate and Execute Confidentiality Agreement with Interested Parties 286\u003c\/p\u003e \u003cp\u003eDistribute Confidential Information Memorandum and Initial Bid Procedures Letter 287\u003c\/p\u003e \u003cp\u003ePrepare Management Presentation 288\u003c\/p\u003e \u003cp\u003eSet Up Data Room 289\u003c\/p\u003e \u003cp\u003ePrepare Stapled Financing Package (if applicable) 291\u003c\/p\u003e \u003cp\u003eReceive Initial Bids and Select Buyers to Proceed to Second Round 291\u003c\/p\u003e \u003cp\u003eSecond Round 293\u003c\/p\u003e \u003cp\u003eConduct Management Presentations 293\u003c\/p\u003e \u003cp\u003eFacilitate Site Visits 294\u003c\/p\u003e \u003cp\u003eProvide Data Room Access and Respond to Diligence Requests 294\u003c\/p\u003e \u003cp\u003eDistribute Final Bid Procedures Letter and Draft Definitive Agreement 295\u003c\/p\u003e \u003cp\u003eReceive Final Bids 296\u003c\/p\u003e \u003cp\u003eNegotiations 300\u003c\/p\u003e \u003cp\u003eEvaluate Final Bids 300\u003c\/p\u003e \u003cp\u003eNegotiate with Preferred Buyer(s) 300\u003c\/p\u003e \u003cp\u003eSelect Winning Bidder 300\u003c\/p\u003e \u003cp\u003eRender Fairness Opinion (if required) 301\u003c\/p\u003e \u003cp\u003eReceive Board\/Owner Approval and Execute Definitive Agreement 301\u003c\/p\u003e \u003cp\u003eClosing 302\u003c\/p\u003e \u003cp\u003eObtain Necessary Approvals 302\u003c\/p\u003e \u003cp\u003eShareholder Approval 303\u003c\/p\u003e \u003cp\u003eFinancing and Closing 305\u003c\/p\u003e \u003cp\u003eNegotiated Sale 306\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Buy-Side M\u0026amp;A 309\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBuyer Motivation 310\u003c\/p\u003e \u003cp\u003eSynergies 311\u003c\/p\u003e \u003cp\u003eCost Synergies 312\u003c\/p\u003e \u003cp\u003eRevenue Synergies 312\u003c\/p\u003e \u003cp\u003eAcquisition Strategies 313\u003c\/p\u003e \u003cp\u003eHorizontal Integration 313\u003c\/p\u003e \u003cp\u003eVertical Integration 313\u003c\/p\u003e \u003cp\u003eConglomeration 314\u003c\/p\u003e \u003cp\u003eForm of Financing 315\u003c\/p\u003e \u003cp\u003eCash on Hand 316\u003c\/p\u003e \u003cp\u003eDebt Financing 316\u003c\/p\u003e \u003cp\u003eEquity Financing 317\u003c\/p\u003e \u003cp\u003eDebt vs. Equity Financing Summary—Acquirer Perspective 318\u003c\/p\u003e \u003cp\u003eDeal Structure 318\u003c\/p\u003e \u003cp\u003eStock Sale 318\u003c\/p\u003e \u003cp\u003eAsset Sale 321\u003c\/p\u003e \u003cp\u003eStock Sales Treated as Asset Sales for Tax Purposes 324\u003c\/p\u003e \u003cp\u003eBuy-Side Valuation 327\u003c\/p\u003e \u003cp\u003eFootball Field 327\u003c\/p\u003e \u003cp\u003eAnalysis at Various Prices 330\u003c\/p\u003e \u003cp\u003eContribution Analysis 331\u003c\/p\u003e \u003cp\u003eMerger Consequences Analysis 333\u003c\/p\u003e \u003cp\u003ePurchase Price Assumptions 333\u003c\/p\u003e \u003cp\u003eBalance Sheet Effects 338\u003c\/p\u003e \u003cp\u003eAccretion\/(Dilution) Analysis 343\u003c\/p\u003e \u003cp\u003eAcquisition Scenarios—I) 50% Stock\/50% Cash; II) 100% Cash; and III) 100% Stock 346\u003c\/p\u003e \u003cp\u003eIllustrative Merger Consequences Analysis for the BuyerCo\/ValueCo Transaction 351\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Four Initial Public Offerings 373\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Initial Public Offerings 375\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy Do Companies Go Public? 376\u003c\/p\u003e \u003cp\u003eCharacteristics of a Strong IPO Candidate 378\u003c\/p\u003e \u003cp\u003eAttractive Industry 378\u003c\/p\u003e \u003cp\u003eStrong Competitive Position 378\u003c\/p\u003e \u003cp\u003eGrowth Opportunities 379\u003c\/p\u003e \u003cp\u003eMoat \u0026amp; Barriers to Entry 380\u003c\/p\u003e \u003cp\u003eHealthy Financial Profile 380\u003c\/p\u003e \u003cp\u003eDisruptive \u0026amp; Differentiated Solutions 381\u003c\/p\u003e \u003cp\u003eFavorable Risk Profile 381\u003c\/p\u003e \u003cp\u003eProven Management Team 382\u003c\/p\u003e \u003cp\u003eKey Participants 383\u003c\/p\u003e \u003cp\u003eInvestment Banks 383\u003c\/p\u003e \u003cp\u003eCompany Management 386\u003c\/p\u003e \u003cp\u003eCurrent Owners\/Investors 387\u003c\/p\u003e \u003cp\u003eIPO Investors 387\u003c\/p\u003e \u003cp\u003eLawyers 388\u003c\/p\u003e \u003cp\u003eAccountants 388\u003c\/p\u003e \u003cp\u003eExchange Partner 389\u003c\/p\u003e \u003cp\u003eIPO Advisors 390\u003c\/p\u003e \u003cp\u003eVendors 390\u003c\/p\u003e \u003cp\u003eSelected Key Terms 391\u003c\/p\u003e \u003cp\u003eOffering Size 392\u003c\/p\u003e \u003cp\u003ePrimary\/Secondary 393\u003c\/p\u003e \u003cp\u003eOverallotment Option, a.k.a. “Greenshoe” 394\u003c\/p\u003e \u003cp\u003eSyndicate Structure 395\u003c\/p\u003e \u003cp\u003eLock-up Provision 396\u003c\/p\u003e \u003cp\u003eListing Exchange 396\u003c\/p\u003e \u003cp\u003eGross Spread 397\u003c\/p\u003e \u003cp\u003eDual-Track Process 398\u003c\/p\u003e \u003cp\u003eSpecial Purpose Acquisition Companies (Spac s) 401\u003c\/p\u003e \u003cp\u003eDirect Listings 403\u003c\/p\u003e \u003cp\u003ePost-IPO Equity Offerings 406\u003c\/p\u003e \u003cp\u003eIPO Considerations 407\u003c\/p\u003e \u003cp\u003eNasdaq Appendix 409\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 The IPO Process 413\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOrganization and Preparation 415\u003c\/p\u003e \u003cp\u003eSelect IPO Team, Exchange Partner and Assign Responsibilities 415\u003c\/p\u003e \u003cp\u003eManage Corporate Housekeeping 418\u003c\/p\u003e \u003cp\u003eC Corp vs. Up-C Structure 423\u003c\/p\u003e \u003cp\u003eDetermine IPO Timing 425\u003c\/p\u003e \u003cp\u003eDetermine Offering Structure and Preliminary IPO Valuation 426\u003c\/p\u003e \u003cp\u003eHost Organizational Meeting 429\u003c\/p\u003e \u003cp\u003eDue Diligence, Drafting, and Filing 430\u003c\/p\u003e \u003cp\u003ePerform Underwriter Due Diligence 430\u003c\/p\u003e \u003cp\u003eDraft and File the Registration Statement 431\u003c\/p\u003e \u003cp\u003ePrepare Other Key Transaction and Corporate Governance Documents 436\u003c\/p\u003e \u003cp\u003eCoordinate with Equity Research 437\u003c\/p\u003e \u003cp\u003eRespond to SEC Comments and File Amended Registration Statement 437\u003c\/p\u003e \u003cp\u003eMarketing and Roadshow 438\u003c\/p\u003e \u003cp\u003ePrepare Marketing Materials 438\u003c\/p\u003e \u003cp\u003eSalesforce Teach-in 439\u003c\/p\u003e \u003cp\u003eConduct Roadshow 440\u003c\/p\u003e \u003cp\u003eBuild Order Book 443\u003c\/p\u003e \u003cp\u003ePricing and Allocation 445\u003c\/p\u003e \u003cp\u003ePrice the Offering 445\u003c\/p\u003e \u003cp\u003eAllocate Shares to Investors 447\u003c\/p\u003e \u003cp\u003eClosing 447\u003c\/p\u003e \u003cp\u003eAfterword 449\u003c\/p\u003e \u003cp\u003eBibliography and Recommended Reading 451\u003c\/p\u003e \u003cp\u003eIndex 457\u003c\/p\u003e \u003cp\u003e\u003cb\u003eJOSHUA ROSENBAUM\u003c\/b\u003e is a Managing Director and Head of the Industrials \u0026amp; Diversified Services Group at RBC Capital Markets, where he also serves on the Management Committee for the U.S. Investment Bank. He originates, structures, and advises on M\u0026amp;A, corporate finance, and capital markets transactions. Previously, he worked at UBS Investment Bank and the International Finance Corporation, the direct investment division of the World Bank. He received his AB from Harvard and his MBA with Baker Scholar honors from Harvard Business School. He is also the co-author of \u003ci\u003eThe Little Book of Investing Like the Pros.\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eJOSHUA PEARL\u003c\/b\u003e is the Founder and Chief Investment Officer of Hickory Lane Capital Management, a long\/short equity asset manager. He focuses on public equity investments and special situations utilizing a fundamentals-based approach. From 2011-2020, he served as a Managing Director and Partner at Brahman Capital. Previously, he structured high yield financings, leveraged buyouts, and restructurings as a Director at UBS Investment Bank. Prior to UBS, he worked at Moelis \u0026amp; Company and Deutsche Bank. He received his BS in Business from Indiana University’s Kelley School of Business. He is also the co-author of \u003ci\u003eThe Little Book of Investing Like the Pros.\u003c\/i\u003e  \u003c\/p\u003e\u003cp\u003e\u003cb\u003eA timely update to the global bestselling book on investment banking and valuation\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn the constantly evolving world of finance, a solid technical foundation is an essential tool for success. Due to the fast-paced nature of this world, however, no one was able to take the time to properly codify its lifeblood—namely, valuation and dealmaking. Rosenbaum and Pearl originally responded to this need in 2009 by writing the first edition of the book that they wish had existed when they were trying to break into Wall Street. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eInvestment Banking: Valuation, LBOs, M\u0026amp;A,and IPOs, Third Edition \u003c\/i\u003eis a highly accessible and authoritative book written by investment bankers that explains how to perform the valuation work and financial analysis at the core of Wall Street—comparable companies, precedent transactions, DCF, LBO, M\u0026amp;A analysis … and now IPO analytics and valuation. Using a step-by-step, how-to approach for each methodology, the authors build a chronological knowledge base and define key terms, financial concepts, and processes throughout the book. \u003c\/p\u003e\u003cp\u003eThe genesis for the original book stemmed from the authors’ personal experiences as students interviewing for investment banking positions. As they both independently went through the rigorous process, they realized that their classroom experiences were a step removed from how valuation and financial analysis were performed in real-world situations. Consequently, they created this book to provide a leg up to those individuals seeking or beginning careers on Wall Street—from students at undergraduate universities and graduate schools to “career changers” looking to break into finance. \u003c\/p\u003e\u003cp\u003eNow, over 10 years after the release of the first edition, the book is more relevant and topical than ever. It is used in over 200 universities globally and has become a go-to resource for investment banks, private equity, investment firms, and corporations undertaking M\u0026amp;A transactions, LBOs, IPOs, restructurings, and investment decisions. \u003c\/p\u003e\u003cp\u003eAs the world of finance adjusts to the new normal of the post-Great Recession era, it merits revisiting the pillars of the second edition for today’s environment. While the fundamentals haven’t changed, the environment must adapt to changing market developments and conditions. \u003ci\u003eAs a result, Rosenbaum and Pearl have updated their widely adopted book accordingly, while adding two new chapters on IPOs.\u003c\/i\u003e  \u003c\/p\u003e\u003cp\u003ePraise for \u003cb\u003eInvestment Banking\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“This book will surely become an indispensable guide to the art of buyout and M\u0026amp;A valuation, for the experienced investment practitioner as well as for the non-professional seeking to learn the mysteries of valuation.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—David M. Rubenstein,\u003c\/b\u003e Co-Founder and Co-Executive Chairman, The Carlyle Group Host, \u003ci\u003eThe David Rubenstein Show: Peer to Peer Conversations\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e“The two Joshes present corporate finance in a broad, yet detailed framework for understanding valuation, balance sheets, and business combinations. As such, their book is an essential resource for understanding complex businesses and capital structures whether you are on the buy-side or sell-side.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Mitchell R. Julis,\u003c\/b\u003e Co-Chairman and Co-CEO, Canyon Partners, LLC \u003c\/p\u003e\u003cp\u003e“\u003ci\u003eInvestment Banking\u003c\/i\u003e provides a highly practical and relevant guide to the valuation analysis at the core of investment banking, private equity, and corporate finance. Mastery of these essential skills is fundamental for any role in transaction-related finance. This book will become a fixture on every finance professional’s bookshelf.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Thomas H. Lee,\u003c\/b\u003e President, Lee Equity Partners, LLC Founder, Thomas H. Lee Capital Management, LLC \u003c\/p\u003e\u003cp\u003e“As a pioneer in public equities, Nasdaq is excited to be partnering with Rosenbaum and Pearl on \u003ci\u003eInvestment Banking\u003c\/i\u003e as they break new ground on content related to IPOs, direct listings, and SPACs. We recommend the book for any shareholder and senior executive looking to take a company public, as well as their bankers and lawyers.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Adena Friedman,\u003c\/b\u003e President and CEO, Nasdaq \u003c\/p\u003e\u003cp\u003e“Investment banking requires a skill set that combines both art and science. While numerous textbooks provide students with the core principles of financial economics, the rich institutional considerations that are essential on Wall Street are not well documented. This book represents an important step in filling this gap.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Josh Lerner,\u003c\/b\u003e Jacob H. Schiff Professor of Investment Banking, Harvard Business School  Co-author, \u003ci\u003eVenture Capital and Private Equity: A Casebook\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e“Valuation is the key to any transaction. \u003ci\u003eInvestment Banking \u003c\/i\u003eprovides specific step-by-step valuation procedures for LBO and M\u0026amp;A transactions, with lots of diagrams and numerical examples.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Roger G. Ibbotson\u003c\/b\u003e, Professor in the Practice of Finance, Yale School of Management Chairman and CIO, Zebra Capital Management, LLC Founder, Ibbotson Associates \u003c\/p\u003e\u003cp\u003e“\u003ci\u003eInvestment Banking \u003c\/i\u003eprovides fresh insight and perspective to valuation analysis, the basis for every great trade and winning deal on Wall Street. The book is written from the perspective of practitioners, setting it apart from other texts.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Gregory Zuckerman\u003c\/b\u003e, Special Writer, \u003ci\u003eThe Wall Street Journal  Author, The Greatest Trade Ever, The Frackers, and The Man Who Solved the Market\u003c\/i\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989474459877,"sku":"NP9781119867876","price":95.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119867876.jpg?v=1761784245","url":"https:\/\/k12savings.com\/es\/products\/investment-banking-isbn-9781119867876","provider":"K12savings","version":"1.0","type":"link"}