How to Be an Investment Banker

Introduction xi
Overview of the Book xii
Who Is the Book For? xiii
Structure of the Book xiii
Acknowledgments xix
Chapter 1 Introduction to Investment Banking 1
Overview of an Investment Bank 2
Overview of Investment Banking 7
The Life of an Investment Banker 22
Frequently Asked Questions 47
Chapter 2 Accounting Overview 55
Introduction to Accounting 56
The Income Statement 58
The Balance Sheet 69
The Statement of Cash Flows 83
Integrating the Three Financial Statements 88
End-of-Chapter Questions 99
Chapter 3 Finance Overview 101
The Financial System 102
Principles of Finance 107
Introduction to Corporate Finance 114
Valuing Securities 130
End-of-Chapter Questions 145
Chapter 4 Financial Statement Analysis 147
Sources of Financial Information 148
Financial Statement Analysis 158
Analyzing Different Time Periods 169
"Normalizing" the Financials 174
End-of-Chapter Questions 177
Chapter 5 Valuation 179
Introduction to Valuation 180
Comparable Company Methodology 194
Precedent Transaction Methodology 210
Discounted Cash Flow (DCF) Analysis 219
Valuation Conclusions 238
End-of-Chapter Questions 245
Chapter 6 Financial Modeling 247
Overview of an Integrated Cash Flow Model 248
Building an Integrated Cash Flow Model 262
End-of-Chapter Questions 292
Chapter 7 Mergers and Acquisitions 293
M&A Overview 293
The M&A Process 302
M&A Analysis 310
End-of-Chapter Questions 322
Chapter 8 Leveraged Buyouts 323
Overview of LBOs 324
LBO Modeling 331
LBO Conclusions: Do We Do the Deal? 347
End-of-Chapter Questions 348
Chapter 9 Recruiting, Interviewing, and Landing the Job349
What Are Investment Banks Looking For? 350
The Recruiting Process 354
Resumes and Cover Letters 360
Networking and Informational Interviews 368
Interviewing 375
Receiving an Offer and Being a Banker 398
Conclusions 403
Further Reading 405
About the Author 407
About the Website 409
Index 411