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WACC and Optimal Capital Structure Reviews

Client Catch-Ups and Cost of Capital Reviews Investment bankers are relationship managers and need to be on the pulse for when companies decide to undertake corporate actions such as issuing capital such as debt or equity or deciding on engaging in mergers and acquisitions. If an industry is hot – usually the

Reasons for Mergers & Acquisitions

Mergers and acquisitions are the bread and butter of investment banking. Company A buys Company B and the investment bank earns a fee as a % of the total enterprise value of the target. Then, the investment bank will earn fees on the financing - often multiples of the M&A

Chapter 11 Bankruptcy – Financial Restructuring

The Unlevered Firm and Financial Restructuring When companies that are unable to meet debt service but have value in continuing as a going concern, it is generally to the benefit to all stakeholders as well as the economy that the company maintains operations while it restructures. Going back to corporate finance theory,

Corporate Banking Deals and Transactions

Written by a corporate banker at a major North American bank What keeps corporate and commercial bankers busy when they are not doing annual reviews? Deals! Servicing a portfolio encompasses a variety of loan transactions, which are outlined below: New Debt/Credit Facility These are the most exciting transactions for corporate and commercial bankers. New

Are the Hours Really That Bad in Investment Banking?

“105 hour weeks for four months straight.” “I went home at 2AM every day.” When I was 12 years old, I was sitting at an extended family dinner when a few mothers began gossiping about their children, the children of people they knew and the children of people that they had heard

What Do Investment Banking Associates Do?

This is a question that comes up from time to time and there is not necessarily a right answer. The standard answer is the analyst does the work and the associate checks the work and is in charge of the main presentation materials. The associate is supposed to be a more

One Team, One Dream – Investment Banking Touch Points

The Divisions of the Investment Bank Investment banks have historically revolved around two separate divisions - investment banking and institutional sales and trading. Investment banking comprises of corporate finance advisory work - mergers and acquisitions, return of capital initiatives (share repurchases and dividends), takeover defense, recapitalizations and leveraged buy outs -