How to prepare for a Senior Analyst/Associate role at FIG IB/M&A boutique

How do you value companies in FIG M&A in general? And then how would you value an asset/wealth management firm? I have an associate M&A interview coming up.
 

How do you value companies in FIG M&A in general? And then how would you value an asset/wealth management firm?

I have an interview coming up. How would you value a company in FIG M&A/IB?

Would you use DDM model or DCF or LBO? Or just use multiples approach? P/E multiple? P/TBV? Or P/BV? Also how would you value a Wealth and asset management firm in FIG M&A? What valuation model?
 

Would use use comp/precedent transactions? What multiples for each segment for FIG are currently being used? What multiples for say EV/EBITDA or EV/AUM be?
 

Any advice for a 30-45 min technical interview? What will I be asked/Expected to know?

10 Comments
 
[Comment removed by mod team]
 

I hope you’re not joining my boutique lol.

1. Banks and Insurance are typically the only types that will need a DDM. You will likely not touch this at a boutique. They need it because debt and WC is viewed and used differently. E.g. deposits are an asset instead of liability

2. Multiples could be like P/BV for example. This is a simple google search and is also on the 400 if interested

3. AM use regular EV valuation methods.

Basic FIG concepts to brush up on

 

Nice to see you respond like a dickhead to some genuine questions and then also make a pretty brutal mistake yourself…

Deposits may be important for banks as they can be used to lend money, capture customers, generate fee income etc., but they are not “assets” in the technical sense at all. They are on the liabilities side of the BS.

 

Apologies with that one and you are right. As you said loans are assets and deposits are liabilities. But deposits, although a form of debt, are so fundamentally different in the way it’s used it might as well not be a liability.

Regardless, a quick ‘When do we use a DDM’ google would answer all of the questions here.

 

Thanks for defending me bro, exactly, why the guy decides to attack someone else for trying to move to another Team or sector, and then makes a mistake himself. Pure nonchalant and self-entitlement and "toxicity" that isn't needed on this forum, this forum is about learning, improving, growing, helping overs and making a positive impact in the world. Good to see you and someone else lift someone up and call someone else on their bad attitude!

 

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