Will be joining an execution-focused BB M&A group this summer. I'm curious about the specific modeling that analysts in execution groups spend most of their time with.
For those of you guys that are in groups where analysts rarely pitch, do you mostly spend your time working with just accretion/dilution models? Or is it still necessary to build full football fields for clients that show a DCF, transaction comps, etc. as part of the execution process? It would also helpful to know how much industry groups help out with this.
Thanks in advance for the replies. I have some spare time on my hands so this will help me know what to prioritize when I flip through material in preparation for this summer.
Varies a great deal by bank and by industry. More specialized industry groups, eg FIG, real estate, energy, etc. will generally handle more of the modeling and analytical work themselves, and M&A (if involved) will handle miscellaneous, less interesting (from analyst perspective) tasks.
Modeling activity for the other industries varies by project, but you will frequently use: - LBO, - DCF, - Merger model (accretion / dilution) for various scenarios - full valuation (FB field etc.)
This is helpful, but just to clarify, I will be joining the M&A product group. Not an industry group. That's why I'm asking about the most common models I can expect to see.
Is it accurate to say that analysts in M&A product groups spend significantly more time on accretion/dilution models vs. other valuation models? My logic is that a deal has more of a chance of actually going through once the M&A group gets involved, making the process of independent valuation less necessary
Teller Just to clarify, my reply above pertains to M&A product groups. The tasks per deal assigned to the M&A analyst vary by deal and industry as I explain above.
And your logic isn't accurate. Valuation (read: Fairness Opinions) is a core part of what M&A groups do.
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