Comments (31)

  • Analyst 1 in IB-M&A
Mar 24, 2022 - 8:52pm

Pleeeeeaaaaase

  • Associate 3 in Consulting
Mar 27, 2022 - 11:40am

nope, i think what we do is much more interesting than IB side of RX. plus my firm also allows me involvement in different teams (private equity group, M&A etc) so lots of learning / experience variety.

sure no doubt we get paid less but im 100% WFH and my partners / MDs are 100% much more chill than everything ive heard about bankers

  • Analyst 1 in Consulting
Mar 28, 2022 - 8:49pm

What do you mean by not involved in situation (unless you meant valuation)? Aren't RX Consultants and RX Bankers typically working somewhat together when it comes to things like negotiations with creditors or not really? What would your thoughts be on an A&M RX Consultant looking to jump to an RX IB like HL RX? Feasible or impossible? How about from a lower-tier RX IB like JEF/Piper/Baird? Appreciate any opinions and insight.

Mar 26, 2022 - 7:52pm
LMD, what's your opinion? Comment below:

13 week CF models definitely handled by the RX consultants; they're the ones doing the actual top line projections etc. 

Off the top of my head: 

  • Recap / refi models and debt waterfalls as you've mentioned. Be prepared to run 100 incrementally different scenarios; one of my deals had a couple hundred rows just on the control panel / assumptions page. This also includes models to deal with warrants/options that are sometimes part of the RX consideration
  • Liquidity / CF models in the sense that you take the consultants' numbers and run it through your new capital structure / financing assumptions etc.
  • Comps and every so often a full blown valuation that, in my opinion, is more rigorous than in M&A given it has to hold up in court
  • And once in a blue moon some random esoteric models: I've done a stochastic model, a customer lifetime valuation model, and a particularly fiendish valuation of a bespoke option
Jun 12, 2022 - 1:26am
Lupus1702, what's your opinion? Comment below:

Somehow I couldn't send you a message. Could you PM me instead? Thank you!

Jun 12, 2022 - 12:02pm
Kele, what's your opinion? Comment below:

Hey silver85 it's not letting me pm you. Interested in some of the models you have, can you pm me?

  • Analyst 1 in HF - Other
Jun 11, 2022 - 3:52pm

Like others have mentioned, when I was in RX IB I did some of the following:

  • Valuation models for Debtor in bankruptcy (DCF, transaction comps, trading comps, etc.)
  • Recap models showing different capital structures and feeding these into the operating model to look at how these proposed structures would affect FCF, leverage, etc. 
  • A ton of PF cap structures showing the effects of different transactions (unsubs, priming debt, discounted tenders, new money etc.)
  • Different variations of some sort of "debt comps" to try to determine what the market yield/pricing should be for new securities (looking at similar paper by leverage/LTVs/Credit Ratings)
  • Liquidity rolls to stress-test a company we were looking at pitching to see in what scenarios they'd hit a wall (not able to address a maturity, bust a covenant, run out of cash, etc.)
  • Modeling different credit doc baskets (Permitted Debt/Permitted Liens/Permitted RPs & Investments, etc.). Either to see whether or not they could do a certain transaction, or in negotiations for what baskets should be included in new financing and finding that balance between keeping creditors happy/protected and affording the debtor the flexibility they need to run the business 
  • When working with a creditor/sponsor we would model the expected returns/IRRs of new financing for them, sometimes people even did LBO models.
  • Other. The cool thing about RX is that it can include models/transactions from other groups as well - there are plenty of distressed M&A transactions and bespoke financings that can require merger models or models for convertible debt/equity financings/mezz debt/securitizations that get really interesting.

Good luck with the new gig and if somebody is working on something cool you can totally ask them to show you around the model if they have some spare time.

Jun 12, 2022 - 2:27pm
ENlGMA, what's your opinion? Comment below:

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