Hi everyone,
I am going to have a test new week for an internship in a boutique M&A based in Europe. I will have to process an article about a company and prepare a one-pager for a senior banker based on the information you managed to extract from the article. The boutique is specialized in TMT.
How should I structure my page?
thank you.
up
Company Overview 1. talk about the company and their history 2. talk about their products, what drives revenue (key drivers) Investment Highlights 3. why is this a good opportunity 4. is it quickly growing? good CF? what positions it for growth? 5. talk about their customer base and what makes them attractive/blue chip? fast growing? Financial Highlights 6. talk about revenue and EBITDA mostly (avoid FCF as you can make mistakes in calcs.) 7. talk about margins, are they scalable? 8. if their public, I'd put MD&A guidance and forecast 1 or two years but avoid assumptions (or you can put "X" as a place holder, they won't penalize you for this).
You need to sell your ability to write not your DCF capabilities. Identify what makes this a good company and why someone would want it. DO NOT PUT A PURCHASE PRICE.
If you want to get creative, look up company docs and try and mimic their format and colours, so it will show you've done your homework and know how to adapt.
Thanks @tiptop101
M&A model test botique (Originally Posted: 03/20/2014)
I know LBO modeling tests have been discussed on these boards many times in the past, but not M&A as much. I just found out I will be having a merger model test next week for an M&A botique. Can anyone offer any insight? How much info is general given? What base assumptions would you need to make. Amortization rates, write ups to PP&E and other intangibles, sources and uses (break down of cash, debt, stock)? The firm deals with middle market companies that are private mainly, so no A/D for eps. How would I make the call to merger or not. Are these generally done from scratch or would I be given 2 opp models to merge. Does anyone have a sample test they could PM? Thanks in advance for the help. Sorry for any typos I'm trying to crush this out on my iPhone before hopping on a plane.
-ceeb
Can't find it. Do you have a link? I'm not too worried about the lbo model. Just wanted to see if anyone has done something like this. I'm woundering how to navigate the stock/debt/cash mix in the merger model since it will most likely be for a private co. Would this most likely be give. With no EPS, what you other items be to look for when evaluating the potential merger.
DCF Modeling Test for a Consumer M&A Boutique HELP (Originally Posted: 01/23/2018)
Hello guys, I will soon have superday with an M&A boutique focused on consumer (Food & Beverages in particular) for a 1st year analyst position. There will be a DCF modelling test from scratch. They told me that I will be given the Annual Report and a Broker note of a company and will need to be able to build it form there in c. 1h and 15/30min. I am familiar with DCF and have practiced financial modelling in previous internships, but:
Thanks for your help in advance!
BUMP
Download the CapIQ DCF model. Stick with bottom-up beta, and calculate working capital cash flow via the working capital schedule (assuming same cash conversion cycle on working capital).
Understand it to the point that you can built it from scratch if you want to.
The reason I say to use this model is that (i) if you set it up properly it will be fairly accurate (ii) it has the standard setup they'll want to see and (iii) it's something you can build in an hour.
Regarding assumptions, do things which are reasonable. (E.g. check to make sure the terminal value multiple is in the normal trading range.)
Practice building it out a few times. One you have the core framework down pat, start adding bells and whistles to make it look sexy such that yours stands out.
I can't find the CapIQ DCF model on google, any chance you can send it by PM or other ways? What do u mean by bottom up beta? For WC, you mean that I have to forecast the ending balance of AR AP an Inv each year (with the day in inventory, days receivable etc) and then calculate the delta every year?
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