美林投行估值模型

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Role ຫໍສະໝຸດ Baiduf the Analyst
For each pitch or transaction, the typical deal team consists of one of each of the following: Managing Director (10 – 25 years of experience) Director (7 – 12 years of experience) Vice President (6 – 10 years of experience) Associate (MBA entry level position(1): 3 – 6 years of experience) Analyst (undergraduate entry level position: 2 – 4 year program) Role of the Analyst Financial Analysis. Financial statement analysis Comparable company analysis Financial projections (i.e. dynamic forecast model) Merger consequences Presentation Preparation. Drafting and editing Graphic design Presentation support Industry Research. Competitive analyses (research reports) Briefing materials Transaction Execution. Drafting documents Due diligence Marketing material preparation Roadshow logistics Client Support. Acquisition project support Strategic studies Special projects
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Types of Models Used in Investment Banking
Dynamic Forecast Model. A model which has income statement, balance sheet and cash flow statement linked such that changes in assumptions flow through all financial statements. Merger Consequences Model. A model which analyzes the impact on a company's financial performance of a strategic action, such as: A corporate merger An acquisition (asset or corporate) A divestiture (sale of asset, subsidiary or entire company) Leveraged Buy Out Model ("LBO"). A model which evaluates the expected financial returns of a primarily debt-funded acquisition of a company. Discounted Cash Flow Model ("DCF"). A model which uses the projected cash flow of a company to establish its intrinsic value. Recapitalization Model. A model which analyzes the impact on a company of significantly altering its capital structure. Any or all of these models can be combined into one Excel file.
____________________ (1) On rare occasions, high performing senior analysts will be promoted directly to the Associate level without an MBA.
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Introduction to Merrill Lynch
Merrill Lynch is a global financial firm with over $1.5 trillion in total assets which provides a number of services including: Investment Banking Trading/Market Making Wealth Management Broker-Dealer Insurance Lending Merrill Lynch's Investment Banking Division is one of only three firms (along with Goldman Sachs and Morgan Stanley) to maintain a top five position in global M&A volume in every year over the past five years. Additionally, Merrill Lynch maintains a top five position in equity and debt issuance and is typically regarded as the leader in more creative securities such as convertible debt and hybrid capital
Overview of the types of models used in investment banking.
Review of the key considerations and best practice tips for modeling in Excel.
Overview of valuation model example with example build-out of discounted cash flow valuation.
Johanne Beaulieu
3rd Year Analyst
BBA in Business Honors/Finance from UT (2004) 2+ year as an Analyst at Merrill Lynch (2004-Present)
James Stewart
3rd Year Analyst
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Modeling Considerations and "Best Practice" Tips
Flexibility: Design the model so that it can be modified easily. Tip: any assumption that was made to create the model, such as revenue growth, or discount rate, should be easy to change Visibility: Create the model under the premise that anyone should be able to review/audit and understand it quickly. Tip: refrain from embedding hard coded data in formulas or hiding/grouping rows/columns Organization and Design: Organize workbook so that worksheets flow together logically. Tip: group all assumptions on separate tab; name all other tabs according to the information or function each contains (e.g. income statement, balance sheet, depreciation schedule, output, etc.) Depth: Construct model to reflect the reality of the business while making as few simplifying assumptions as possible. Tip: build separate schedules for capital expenditures, depreciation, debt, etc. Realistic Depiction of Business Operations: Choose assumptions that are reasonable and defensible. Tip: most assumptions will be determined by a senior banker, but equity research or industry reports can provide guidance Formatting: Use formatting for a purpose. Tip: use one color for hard coded data (i.e. constants or historical data), another for links and a third for formulas
Summary of commonly used Excel shortcut keystrokes.
Q&A.
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Introduction to Investment Banking
Investment banks play an intermediate role in the financial markets by assisting public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions.
Materials Prepared for: McCombs School of Business Students Regarding: The Merrill Lynch Excel Modeling Workshop
November 9, 2006
Introduction of Presenters
How is Investment Banking organized? Industry Basic Industries Consumer Products/Retail Healthcare Energy/Power Multi-Industry Technology/Media/Telecom Financial Sponsors M&A Corporate Finance Leveraged Finance Private Equity Capital Markets: Debt Equity Equity-Linked Derivatives Commodities Product M&A Capital Raising Liability Management Risk Management Strategic Analysis Problem Solving Prepare Client Presentations Client Contact What do Investment Bankers actually do? Origination Idea Generation: Execution Due Diligence Documentation Financial Analysis Valuation Prepare Materials for: Board of Directors Internal Committees Potential Investors Negotiation/Structuring Client Management
BBA in Finance from SMU (2004) 2+ year as an Analyst at Merrill Lynch (2004-Present)
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Modeling Workshop Agenda
Introduction of investment banking and Merrill Lynch.
Name Eddie Geiser
Position Associate
Summary Bio BBA in Finance from LSU (2000) 3 years as an Analyst at Merrill Lynch (2000-2003) 2 years as an Associate at Juniper Capital (private equity) Rejoined Merrill Lynch as an Associate (2005-Present)