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Free Download Investment Banking Learning Path - Practical Skills Mastery
Published 11/2024
Created by EDUCBA Bridging the Gap
MP4 | Video: h264, 1280x720 | Audio: AAC, 44.1 KHz, 2 Ch
Genre: eLearning | Language: English | Duration: 714 Lectures ( 84h 7m ) | Size: 40.1 GB
IB| Excel| FSA| Modeling| Valuation| MBO| M&A| IPO| PE| LBO| VC| Pitchbook| Portfolio| Fin. Instruments| Restructuring
What you'll learn
Introduction to Investment Banking: Overview of investment banking roles, functions, and how banks facilitate financial transactions.
Financial Statement Analysis: Learning to analyze balance sheets, income statements, and cash flow statements for business insights.
Valuation Techniques: Understanding DCF, comparable company analysis, and precedent transaction analysis for valuing businesses and assets.
Mergers and Acquisitions (M&A): Exploring M&A strategies, deal structuring, and the financial modeling involved in transactions.
IPO and Equity Offerings: Understanding the process, pricing, and strategy behind initial public offerings and equity raises.
Debt Capital Markets: Introduction to bonds, loans, and other debt instruments, plus techniques for debt structuring.
Financial Modeling: Building financial models from scratch, including revenue, expense, and cash flow projections.
Leveraged Buyouts (LBOs): Analyzing leveraged buyout structures, including financing, exit strategies, and risk assessments.
Pitchbook and Presentation Skills: Crafting pitchbooks for investment banking proposals and mastering presentation techniques.
Industry Insights and Trends: Exploring major sectors, market trends, and economic indicators impacting investment banking.
Ethics and Professional Conduct: Emphasizing best practices, regulatory compliance, and ethical considerations in investment banking.
Requirements
Basic Financial Knowledge: Familiarity with accounting principles, financial statements, and basic finance concepts (e.g., balance sheets, income statements, etc.).
Mathematical Skills: Comfort with mathematics, especially in areas like percentages, ratios, and basic algebra, which are key for financial modeling.
Microsoft Excel Proficiency: A working knowledge of Excel, as it is essential for financial modeling, data analysis, and calculations.
Analytical Skills: Strong analytical skills will be helpful, particularly for understanding complex financial data and market trends.
While prior exposure to finance or economics is helpful, it's not mandatory, as the course starts with foundational topics and gradually builds up to advanced concepts.
Description
IntroductionInvestment banking is a dynamic and multifaceted field that drives financial markets and corporate growth through services like underwriting, mergers, acquisitions, and capital raising. This course is designed to offer a comprehensive overview of investment banking, beginning with fundamental concepts, distinctions between types of banks, and insights into the intricate roles within an investment bank. By the end, students will not only understand the industry structure but also gain hands-on skills in financial analysis and modeling using tools such as MS Excel.Section 1: Introduction to Investment BankingIn this introductory section, we delve into the core functions of investment banking and its essential role in the global economy. Starting with an overview, students learn the key differences between investment banks and other types of banks, including retail and commercial banks. Following this, we discuss the buy-side and sell-side of investment banking, covering asset management companies (AMCs), and examine how research supports investment decisions. The section also explores roles in sales, trading, and equity research, highlighting how banks help companies raise capital through IPOs and private placements. Students will gain insight into underwriting processes and understand the roles of market makers and M&A advisors. Lastly, we break down the structure of an investment bank, helping students grasp how various divisions operate synergistically to support clients' financial goals.Section 2: MS Excel for Investment Banking AnalysisExcel is an indispensable tool in investment banking analysis, and this section introduces students to essential Excel skills. Beginning with the basics, students learn about navigating Excel's interface, formatting data, and performing fundamental mathematical operations. They move on to advanced functions, including conditional formatting, pivot tables, and chart creation, which are vital for data visualization. Practical applications include working with complex formulas, logical functions like IF and SWITCH, and data validation. By the end of this section, students will have gained robust Excel skills, enabling them to analyze and present financial data effectively.Section 3: Financial Statements & Analysis (FSA) FoundationFinancial statements provide critical insights into a company's performance and are central to investment banking analysis. This section covers the primary financial statements: the income statement, balance sheet, and cash flow statement. Students learn the structure and components of each statement, from revenue recognition to the importance of cash flows, and gain a deep understanding of accounting principles. By analyzing real-world examples, they explore how these statements fit into the business cycle and support financial decision-making.Section 4: FSA - Income StatementIn this section, students delve into the income statement, starting with basic formats and calculations for profit margins. Topics include non-recurring items, changes in accounting estimates, and various methods of revenue recognition, such as percentage completion and installment methods. By analyzing a company's income statement before and after adjustments, students gain practical skills in income statement analysis and learn to evaluate profitability more effectively.Section 5: FSA - Balance SheetThis section covers the intricacies of the balance sheet, focusing on assets, liabilities, and equity. Students learn about current assets like cash and receivables, inventory valuation, and long-term assets such as goodwill. They also explore current and long-term liabilities, risk profiles, and shareholder equity. Through case studies, students gain insights into real-world applications, enabling them to assess a company's financial health accurately.Section 6: FSA - Cash Flows AnalysisThe cash flow statement is crucial in assessing a company's liquidity and financial flexibility. Students learn to prepare cash flow statements using both the direct and indirect methods and gain a comprehensive understanding of cash flows from operating, investing, and financing activities. Through exercises and real-world examples, they become adept at analyzing cash flow trends and their implications.Section 7: FSA - FSA TechniquesIn this section, students are introduced to foundational FSA techniques such as horizontal and vertical analysis, which help in understanding changes in financial data over time. The course also covers ratio analysis, including activity, liquidity, solvency, and profitability ratios. By analyzing cash conversion cycles, working capital, and returns on equity, students develop skills to evaluate a company's operational efficiency and financial stability.Section 8: FSA - Earnings Per Share (EPS)Understanding Earnings Per Share (EPS) is essential in valuing a company. This section explains basic and diluted EPS, showing how factors like stock dividends and stock splits affect EPS calculations. Students work through practical examples, including stock options and convertible securities, to understand how EPS reflects a company's profitability and performance.Section 9: Income Tax - Understanding Income Tax ConceptsInvestment banking analysis requires a solid grasp of tax implications on financial statements. This section introduces deferred tax assets and liabilities, valuation allowances, and the impact of tax rate changes. Students learn how to interpret tax effects on the financial statements, gaining a well-rounded understanding of corporate tax considerations.Section 10: Shareholder's EquityIn this section, students explore components of shareholder equity, including common and treasury stock, retained earnings, and dividends. They learn about comprehensive income, preference shares, and stock splits, equipping them to assess changes in ownership value and the impact on shareholder wealth.Section 11: Equity Research & Financial Modeling - Tesla Inc.The course culminates with a capstone project focused on Tesla Inc. Students conduct an in-depth equity research analysis, analyzing Tesla's historical data, sales performance, and financial statements. They learn to project revenue, forecast operating expenses, and develop a comprehensive financial model for Tesla, using techniques covered throughout the course.Section 12: Valuation Techniques - DCFThis section focuses on the Discounted Cash Flow (DCF) method, a fundamental valuation technique used to estimate the value of an investment based on its expected future cash flows. The lectures introduce DCF concepts, including terminal value, cost of capital, net debt, and sensitivity analysis, and walk students through the detailed steps of predicting cash flows and determining terminal values. Real-world case studies are employed to provide practical experience, enabling students to gain hands-on knowledge in applying DCF for valuation. Additionally, there's a comparison between DCF and other valuation methods, such as comparable company analysis.Section 13: Valuation Techniques - Relative ValuationIn this section, students delve into relative valuation, which involves comparing a company's value with that of similar entities to determine its worth. Various multiples, like P/E ratio, EV/EBITDA, and P/B ratio, are examined alongside their advantages and limitations. The lectures also cover methods for finding comparable companies, equity value vs. enterprise value, and benchmarking. Practical exercises involve analyzing real companies' financial data, helping students understand how to apply these techniques effectively.Section 14: Management Buyout (MBO)This section explores Management Buyouts (MBOs), where a company's management team purchases the organization. The topics cover the MBO process, types of buyouts, funding sources, valuation, and price determination. Using examples, students learn about financing options, capital gains, and acquisition pricing. The lectures also discuss scenarios where MBOs may be favorable, along with potential challenges and criteria for successful buyouts.Section 15: Bankruptcy Liquidation and Corporate RestructuringThis section discusses the financial distress stages and corporate restructuring options. Students learn about bankruptcy types, insolvency concepts, liquidation, and related calculations, including the Z-Score model and Absolute Priority Rule (APR). Emphasis is placed on restructuring methods, salvage value, and reorganization of unsecured debt. These topics are illustrated with real-world cases to build understanding of managing distressed assets.Section 16: Funding Mergers and AcquisitionsIn this section, students explore funding strategies for mergers and acquisitions (M&A), including stock swaps, cash payments, and external commercial borrowing. The lectures examine the effects of M&A on earnings per share (EPS) and total earnings. Various payment methods are discussed, and students gain insight into how financing decisions affect merger outcomes. Practical examples aid in understanding how M&A is financed and its impact on both companies involved.Section 17: Investment Banking Case Study - HP and CompaqUsing the case of HP and Compaq's merger, this section provides an in-depth look at M&A from an investment banking perspective. Topics covered include outstanding shares, tax implications, market reactions, stock and cash payment options, and capital structure impacts. The analysis aims to highlight the complex decisions and consequences surrounding a high-profile merger.Section 18: Leveraged RecapitalizationThis section covers leveraged recapitalization, a strategy in which a company restructures its capital by increasing debt to pay dividends or repurchase shares. Topics include the purpose and process of leveraged recapitalization, asset and liability restructuring, and ways of executing a leveraged recap. Students learn through case studies, including Sealed Air Corporation, to understand how leveraged recapitalizations can impact shareholders and overall financial strategy.Section 19: Mergers and Acquisitions (M&A)Students explore various aspects of M&A, including types of mergers (horizontal, vertical, and conglomerate), parties involved, and synergies created. The section introduces metrics like the Herfindahl-Hirschman Index for measuring market concentration and discusses earnings bootstrapping. Real examples and scenarios help illustrate M&A dynamics.Section 20: Cash Flow and Comparable CompaniesThis section emphasizes free cash flow and comparable company analysis (CCA) as key metrics in valuation. Students learn about calculating cash flow, analyzing companies, and understanding the advantages and limitations of CCA. Lectures cover acquisition costs and other factors that can impact valuation and investment decisions.Section 21: Goodwill and AcquisitionThis section explores goodwill in the context of acquisitions, discussing how goodwill is calculated and its accounting implications. Topics include divestitures, restructuring, and tax considerations. Comparable transaction analysis is also introduced to help students evaluate acquisition value based on similar deals.Section 22: Synergy and its BenefitsStudents examine synergies in M&A, focusing on how combined assets can create value beyond standalone capabilities. Topics include value generation, cost reduction, and operational and financial restructuring. Case studies, especially from East Asia, provide examples of how synergies drive strategic mergers.Section 23: Securing Asset LendersThe final section discusses asset-backed lending, mezzanine, and subordinated debt as tools for securing company assets and fostering growth. The lectures also cover corporate restructuring strategies in international contexts, examining findings from the UK and Canada. Various debt structures and growth types are discussed as means of achieving corporate control and strategic restructuring.Section 24: Capital Market & Financial InstrumentsIn this section, we explore the intricate world of capital markets and the diverse financial instruments that operate within them. The opening lectures provide an introduction to financial markets, discussing their critical role in the economy, and classify them into various types. We differentiate between the money market and the capital market, outlining their unique functions and characteristics. The capital markets are further dissected into equity markets, debt markets, and derivative markets, with detailed discussions on the instruments prevalent in these areas. A key focus is on equity shares, covering their defining characteristics, advantages for both issuers and investors, and the potential disadvantages that issuers may face. Preference shares are also examined, detailing their types, characteristics, advantages, and disadvantages for both issuers and investors.Debentures take center stage next, with an in-depth analysis of their characteristics, advantages, disadvantages, and classifications. This discussion extends into the realm of derivatives, where we explore their characteristics, advantages, disadvantages, and classifications, offering a comprehensive understanding of these complex financial instruments.The section also encompasses mutual funds, defining their structure, advantages, disadvantages, and classifications. Capital market intermediaries are introduced, with a series of lectures dedicated to their various roles in the market ecosystem. The intricacies of stock exchanges and the trade life cycle are explored, detailing the processes from order types to corporate actions, culminating in a thoro
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