The Complete Investment Banking 2016

The importance of history, name, tradition, and reputation Preview 02:29

Early origins of investment banking services Preview 05:55

What is the difference between commercial and investment banking? Preview 02:11

Why do universal banks have a competitive advantage? Preview 03:26

Intrinsic conflicts of interest and the role of Chinese walls Preview 02:59

Quiz #1

Historical M&A waves Preview 05:33

Three of the most important IPOs in history Preview 04:47

Capital markets – raising equity and debt capital Preview 07:21

Advisory – M&A and Restructuring services Preview 08:43

Trading and Brokerage – trading with financial securities Preview 03:10

Asset management – the ability to use money to make more money Preview 04:03

Quiz #2

Strategies pursued by investment banks Preview 04:01

Relationship vs transaction-based banking Preview 04:44

The accidental investment banker - Book recommendation Preview 01:01

Why would a company want to go public? Preview 02:51

Who are the investors in an IPO? Preview 03:04

Coming up with a share price Preview 03:49

What does an IPO timetable look like? Preview 03:52

The IPO syndicate – members and responsibilities Preview 03:09

The pricing process Preview 04:46

Fee distribution among investment banks Preview 04:09

Allocating shares to investors – who gets what Preview 04:31

Taking a long and short position with respect to a security (definition) Preview 03:00

Post-IPO stabilization: Applying the Greenshoe option Preview 05:05

Greenshoe explained – Practical example Preview 02:11

Other ways to place equity capital – SEOs and private placements Preview 01:32

Facebook's IPO - Case study Preview 05:34

Course Challenge #1 - IPO Preview 00:43

Quiz #3

The four different types of bonds Preview 02:40

Why issue a bond? Preview 03:52

The mechanics of a bond offering. Process description Preview 03:58

A particular type of bonds - Junk bonds Preview 02:57

What is securitization and why can it be useful? Preview 03:20

Securitization - explained Preview 02:43

Asset-backed securities: An example of securitization Preview 05:03

Loan syndication – a preferred instrument for most banks nowadays Preview 02:33

Project finance Preview 05:46

Course challenge #2 - Debt offerings Preview 00:41

Quiz #4

Why acquire another company? Preview 05:34

Describing the typical deal lifecycles and buyer companies Preview 03:16

The three types of M&A processes Preview 02:51

A detailed description of an M&A process Preview 00:38

Valuation of target companies Preview 03:59

Payment options in M&A deals Preview 04:09

Financial vs. Corporate buyers Preview 02:22

Course challenge #3 - M&A Preview 00:47

Quiz #5

Restructuring services – why and when Preview 02:10

The different types of Restructuring Preview 04:50

Course Challenge #4 - Restructuring Preview 00:41

Quiz #6

How investment banks profit from Trading and Brokerage Preview 03:07

The different types of financial securities traded by investment banks Preview 04:17

Quiz #7

Why hire Investment banks as asset managers? Preview 01:32

A risk-return comparison of different investments Preview 02:58

Private equity funds Preview 07:16

Quiz #8

Why value a company? Preview 01:36

How much is a company worth for an investor? Preview 03:12

The two variables that drive a firm’s value Preview 01:57

The mechanism of Unlevered cash flow calculation Preview 04:33

Introducing a discount factor – Weighted average cost of capital Preview 03:58

Calculating a firm's cost of debt Preview 00:55

Calculating a firm’s cost of equity Preview 04:41

How to find the beta for an unlisted firm? Preview 00:44

Estimating a company’s future cash flows Preview 02:31

The two stages of a DCF model Preview 02:24

Discounting cash flows and terminal value Preview 01:44

Calculating enterprise and equity value Preview 01:10

What is a financial model? Preview 02:02

Why use a financial model? Preview 02:34

Inefficient financial modeling practices Preview 05:49

Efficient financial modeling practices Preview 04:58

Different types of financial models we can build Preview 04:42

The right level of detail we should use when building a 5 or 10-year model Preview 02:34

The right way to approach the forecasting exercise Preview 02:51

Building complete financial models Preview 02:15

Forecasting P&L items Preview 05:58

Forecasting Balance sheet items (1/2) Preview 02:34

Forecasting Balance sheet items (2/2) Preview 05:07

How to value a company - Introduction Preview 01:03

The stages of a complete DCF Valuation Preview 06:34

Let's go through the structure of the DCF model we will create in Excel Preview 02:57

A glimpse at the company we are valuing - Cheeseco Preview 01:11

Modeling the top line Preview 03:56

Building flexible financial models in Excel Preview 02:16

Modeling other items: Other revenues and Cogs Preview 03:51

Modeling other items: Operating expenses and D&A Preview 02:27

Modeling Other Items: Interest expenses, Extraordinary items and Taxes Preview 02:43

How to forecast Balance Sheet items - the clear and practical way Preview 00:42

A key concept for finance practitioners - the "Days" methodology Preview 01:34

How to calculate "Days" Preview 01:20

How to use "Days" to project the future development of BS items Preview 02:22

Forecasting Property, plant & equipment, Other assets and Other liabilities Preview 02:21

Excel best practices! Create a good-looking and clean output sheet in your model Preview 02:36

Putting what we learned into practice - Populating the P&L sheet Preview 02:29

How to create a clean output Balance Sheet in your Financial Model Preview 01:53

Completing the output BS sheet for the historical period Preview 03:43

Learn how to calculate Unlevered free cash flows Preview 03:18

Important! Reconcile UFCF to Net cash flow Preview 01:53

A very useful lesson! Cash flow calculation Preview 06:38

Arriving to actual Net cash flow figures and performing a check with cash Preview 03:57

A fast and effective way to modify multiple cell references in Excel Preview 04:01

Introducing weighted average cost of capital (WACC) and perpetuity growth rate Preview 01:55

Learn how to find the present value of future Cash Flows in Financial Models Preview 02:59

Calculating Continuing value and Enterprise value of the business Preview 02:21

Final steps! Calculating Equity value of the business Preview 01:27

Sensitivity analysis for WACC and perpetuity growth Preview 04:40

An application of Goal seek Preview 01:41

Recap of the financial model with charts and hypothesis testing Preview 04:27

Organizing external inputs in a 'Drivers' sheet Preview 03:54

The input data we will work with Preview 01:27

Forecasting Tesla's expected deliveries Preview 14:08

Comparing delivery figures with the ones of industry peers Preview 02:54

Estimating an average selling price of Tesla vehicles Preview 04:50

Calculating automotive revenue Preview 04:37

Peer comparison: Gross profit % Preview 02:18

Calculating automotive gross profit Preview 02:49

Calculating automotive cost of sales Preview 02:04

Forecasting 'energy' and 'services' revenue Preview 02:53

Calculating 'energy' and 'services' gross profit and cost of sales Preview 02:47

Forecasting operating expenses Preview 05:16

Building a fixed asset roll forward: estimating Capex Preview 06:20

Building a fixed asset roll forward: D&A schedule Preview 05:42

Peer comparison: D&A as a percentage of revenues Preview 01:26

Calculating DSO, DIO, DPO Preview 01:54

Producing a clean P&L output sheet Preview 01:29

Fill in the P&L output sheet Preview 01:54

Calculating investments in working capital Preview 01:58

Forecasting Unlevered free cash flow Preview 05:31

Forecasting other assets Preview 03:53

Forecasting other liabilities Preview 02:13

Completing Unlevered free cash flow Preview 03:42

Modeling Tesla's financing needs in the forecast period Preview 04:55

Calculating Net income Preview 01:23

Bridging Unlevered Free cash flow to Net cash flow Preview 03:58

Balancing the Balance sheet Preview 00:57

Estimating Weighted average cost of capital (WACC) Preview 06:07

Performing Discounted cash flow valuation (DCF) Preview 03:34

Calculating enterprise value, equity value, and price per share Preview 02:10

Closing remarks Preview 03:49

Why do we use multiples? Preview 03:51

What types of multiples are there? Preview 02:37

Finding the right comparable companies Preview 01:43

The most widely used multiples Preview 03:28

Best practices that ensure accurate calculation of multiples Preview 02:02

What is an LBO? Preview 02:05

The phases of an LBO process Preview 01:44

When is an LBO a feasible option? Preview 03:23

Making money in an LBO Preview 03:53

Who are the lenders in an LBO? Preview 03:58

Introduction to the model we will build Preview 05:04

Establishing the maximum amount of debt that can be used in the transaction Preview 04:16

Financial sponsors’ perspective Preview 02:27

Forecasting financials until EBIT Preview 05:17

The optimal debt structure Preview 02:59

Estimating cash flows and debt payments Preview 03:15

Completing the model for the period 2018-2021 Preview 04:17

Calculating Enterprise value and IRR Preview 05:01

Performing sensitivity analysis Preview 04:02

Career guide and frequently asked interview questions Preview 00:12

Bonus lecture: Next steps Preview 00:28