How to study Pearl's and Rosenbaum's Investment Banking book?

sunzi11's picture
Rank: Senior Chimp | banana points 27

I'm currently going through the book and was wondering how I should tackle it. Right now I'm reading it front to back but I was wondering if I should read certain chapters like Sell-Side M&A first before getting into Valuations, DCF, and LBOs. Any advice is much appreciated.

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Comments (5)

Sep 26, 2018

I would read it in the order laid out and then make your own DCF LBO and Merger Model's

Sep 26, 2018

Thanks for the advice.

Sep 26, 2018

Really stress to completely understand the rationale behind each step and decision that go into the comparable comp and precent transaction chapters. Also, once you get into DCF, ask yourself throughout which of part of this is a science and which part is an art (meaning science = calculations and art = assumptions) understanding why you make certain assumptions that are the foundation for valuation is essential.

Buying the workbook that goes along with book helps as well.

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Sep 26, 2018

Thanks for the advice. I'm honestly not too sure how to learn the rationale because the book feels like it glances over everything. For example, when the book chose the companies for the comparable comp, I didn't really understand the rationale for choosing the companies it did based on financials.

Sep 26, 2018