The ascendance of investment banking services

1. The importance of history, name, tradition, and reputation

02:28

2. Early origins of investment banking services

05:55

3. What is the difference between commercial and investment banking?

02:15

4. Why do universal banks have a competitive advantage?

03:26

5. Intrinsic conflicts of interest and the role of Chinese walls

02:06

The four main areas of investment banking activity

1. Capital Markets - raising equity and debt capital

07:20

2. Advisory - M&A and Restructuring services

07:55

3. Trading and Brokerage - trading with financial securities

03:11

4. Asset Management - the ability to use money to make more money

04:03

Capital Markets – Equity Capital Markets

1. Why would a company want to go public?

02:25

2. Who are the investors in an IPO?

03:05

3. Coming up with a share price

03:49

4. What does an IPO timetable look like?

03:52

5. The IPO syndicate - members and responsibilities

03:09

6. Allocating shares to investors - who gets what

01:48

7. Other ways to place equity capital - SEOs and Private Placements

01:32

Capital Markets – Debt Capital Markets

1. The four different types of bonds

02:41

2. Why issue a bond?

03:52

3. The mechanics of a bond offering. Process description

03:58

4. What is securitization and why can it be useful?

03:21

5. Loan Syndication - a preferred instrument for most banks nowadays

02:33

Advisory Services – Mergers and Acquisitions

1. Why acquire another company?

05:34

2. Describing the typical deal lifecycles and buyer companies

03:16

3. The three types of M&A processes

02:51

4. A detailed description of an M&A process

00:39

5. Valuation of target companies

03:59

6. Payment options in M&A deals

04:10

7. Financial vs. Corporate Buyers

02:23

Advisory Services – Restructuring

1. Restructuring services - why and when

02:10

2. The different types of Restructuring

04:51

Trading and Brokerage

1. How investment banks profit from Trading and Brokerage

03:07

2. The different types of financial securities traded by investment banks

04:17

Asset Management

1. Why hire Investment banks as asset managers?

01:32

2. A risk-return comparison of different investments

02:58

A step-by-step guide to Company Valuation

1. Why value a company?

01:37

2. How much is a company worth for an investor?

03:13

3. The two variables that drive a firm's value

01:57

4. The mechanism of Unlevered Cash Flow Calculation

04:33

5. Introducing a discount factor - Weighted Average Cost of Capital

03:58

6. Calculating a firm's cost of debt

00:55

7. Calculating a firm's cost of equity

04:41

8. Estimating a company's future cash flows

02:32

9. The two stages of a DCF model

02:24

10. Discounting cash flows and terminal value

01:44

11. Calculating Enterprise and Equity value

01:10

Financial Modeling fundamentals

1. What is a Financial model?

02:02

2. Why use a Financial model?

02:35

3. Inefficient financial modeling practices

05:49

4. Efficient financial modeling practices

04:58

5. Different types of financial models we can build

04:42

6. The right level of detail we should use when building a 5 or 10-year model

02:35

7. The right way to approach the forecasting exercise

02:51

8. Building complete financial models

02:15

9. Forecasting P&L items

05:58

10. Forecasting Balance sheet items (1/2)

02:35

11. Forecasting Balance sheet items (2/2)

05:08

DCF Valuation - Introduction

1. The stages of a complete DCF Valuation

06:16

2. Let's go through the structure of the DCF model we will create in Excel

02:53

3. A glimpse at the company we are valuing - Cheeseco

01:09

DCF Valuation - Forecasting of key P&L items

1. Modeling the top line

03:39

2. This Is how you can build flexible financial models in Excel

02:12

3. Modeling other items: Other revenues and Cogs

03:46

4. Modeling other items: Operating expenses and D&A

02:33

5. Modeling Other Items: Interest expenses, Extraordinary items and Taxes

02:28

DCF Valuation - Forecasting of key Balance Sheet items

1. How to forecast Balance Sheet items - The practical and easy to understand way

00:43

2. Learn how to calculate "Days"

01:30

3. How to use "Days" to project the future development of BS items

02:23

4. Forecasting Property Plant & Equipment, Other assets and Other liabilities

02:27

DCF Valuation - Creating clean output sheets

1. Excel best practices! Create a good-looking and clean output sheet in your model

02:36

2. Applying what we learned in practice - Populating the P&L sheet

02:14

3. This is how you can create a clean output Balance Sheet in your Financial Model

01:49

4. Completing the output BS sheet for the historical period

03:41

DCF Valuation - Calculating Unlevered Cash Flows and Net Cash Flow

1. Learn how to calculate Unlevered Free Cash Flows

03:05

2. Important! Reconcile UFCF to Net Cash Flow

01:55

3. A very useful lesson! Cash flow calculation

06:01

4. Arriving to actual Net Cash Flow figures and performing a check with Cash

03:56

5. The fast and effective way to modify multiple cell references in Excel

03:52

DCF Valuation - Calculating Present Value of Cash Flows in the forecast period

1. Introducing Weighted Average Cost of Capital (WACC) and perpetuity growth rate

01:56

2. Learn how to find the present value of future Cash Flows in Financial Models

02:50

DCF Valuation - Calculating Continuing Value,Enterprise Value and Equity Value

1. Calculating Continuing Value and Enterprise value of the Business

02:17

2. Final steps! Calculating Equity Value of the business

01:22

DCF Valuation - Additional analyses accompanying the Financial Model

1. Sensitivity analysis for WACC and perpetuity growth

04:17

2. An application of Goal Seek

01:40

3. Recap of the Financial Model with charts and hypothesis testing

04:38

Relative valuation – triangulating DCF results with multiples

1. Why do we use multiples?

03:51

2. What types of multiples are there?

02:38

3. Finding the right comparable companies

01:43

4. The most widely used multiples

03:11

5. Best practices that ensure accurate calculation of multiples

02:02

A guide to Leveraged Buyouts

1. What is an LBO?

02:05

2. The phases of an LBO process

01:44

3. When is an LBO a feasible option?

03:23

4. Making money in an LBO

03:53

5. Who are the lenders in an LBO?

03:58

LBO Valuation - Building a Leveraged Buyout model from scratch

1. Introduction to the model we will build

05:04

2. Establishing the maximum amount of debt that can be used in the transaction

04:16

3. Financial sponsors' perspective

02:25

4. Forecasting financials until EBIT

05:17

5. The optimal debt structure

02:59

6. Estimating cash flows and debt payments

03:15

7. Completing the model for the period 2018-2021

04:17

8. Calculating Enterprise Value and IRR

05:01

9. Performing sensitivity analysis

04:02