How important is IB knowledge to investment management/ideas?

By that I mean is it essential for an aspiring analyst in the AM world (sell or buy side) to know every modeling detail about M&A or LBO? If I want to analyze a company that is going through a M&A deal, the knowledge to build an entire M&A model from the bottom is mandatory or these type of situations rarely apply in the real world? I am just curious since I have not been studying IB materials (M&A, LBO...) lately, therefore I am not prepared for interviews regarding these subjects as well.

My guess is that it has very little in common with the day-to-day business, although I can be dead wrong since valuation is a topic that covers all that, not only DCFs or value investing. Does someone has a take on this?

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