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Tips for New Investment Banking Analysts

As a wily, 8 year finance vet, wanted to share some thoughts. Always take the opportunity to go to a client meeting or join a client call right away MDs actually do not care about whether analysts go or not, but it is an incredible learning experience for junior staff. When the

eDreams: Take Off and Crash of Private Equity

By Carla Costa and Camilla Cameroni Initially posted on the BSPEC blog Introduction Founded in February 1999 by Javier Pérez-Tenessa de Block and James Hare, two young marketing professionals, the online travel agency eDreams took up rapidly. The idea was not original, but they were positioning their venture differently from the others, offering

Fee Structures in Private Equity

By Christopher Khoury and Eric Peghini Initially posted on the BSPEC blog Investors allocate capital with Private Equity Firms in order generate a high rate of return on their invested capital. However, when there are several investors and a separate manager, how much of the profits from investments are investors entitled to?

CLOs at the Center of the New PE Industry

By Davide Martellozzo, Simone Bertani and Leonardo Astegiano Initially posted on the BSPEC blog Introduction to CLOs Collateralized Loan Obligations (henceforth, CLOs) have become increasingly popular in the post-crisis era because of some intrinsic features such as strong credit performance and appealing risk-return profile, making them an attractive asset class to the eye of

Luxury Goods Industry Primer

The luxury goods industry is a core industry within Consumer & Retail. Depending on its definition, specifically whether or not it includes luxury cars and hospitality, the market size of the luxury goods industry ranges from $200 billion to $1.2 trillion. We will focus on the core luxury goods industry

Spreading Investment Banking Comps: Preferred, Minority Interest and Adjusting for Subsequent Events

In previous posts, we addressed the equity and debt components in the enterprise value formula: EV = Equity + Debt – Cash & Marketable Securities + Preferred Shares + Minority Interest + Asset Retirement Obligations + Capitalized Operating Leases + Pension Obligations – Investments (including investments in affiliates, long-term investments) +

Spreading Investment Banking Comps: Calculating Fully Diluted Market Capitalization

We will explain the most important part of spreading comps for investment bankers in this post. The brunt of conducting comparable companies analysis is to calculate the appropriate enterprise value, which will have certain components which are "live" and certain components that are the latest historical financial statement data. So to