Rationale?
Trying to figure out what people might be thinking on the other side.
Why would a firm test you on building LBO/DCF model when the firm is M&A focused firm...?
Would appreciate any insights & thoughts.
Trying to figure out what people might be thinking on the other side.
Why would a firm test you on building LBO/DCF model when the firm is M&A focused firm...?
Would appreciate any insights & thoughts.
+138 | Is my life over after not getting GS? | 33 | 3s | |
+73 | Best IB group on the Street | 35 | 3h | |
+66 | Thoughts and tips on how to speak like an investment banker. | 25 | 1d | |
+58 | BIG FOUR ARE PARADISE | 15 | 22h | |
+49 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 18h | |
+38 | UBS Outlook | 28 | 2d | |
+35 | How to deal with egotistical team? | 6 | 3d | |
+33 | Are you “less ambitious” for having long term goals outside of NYC | 13 | 9h | |
+26 | Very ridiculous interview feedback | 13 | 8h | |
+26 | Got RBC offer but I have cold feet accepting. | 34 | 11h |
Career Resources
I am going to keep my answer and examples very simple as I get the feeling you do not quite understand M&A.
DCF is a method of valuation. You would be required to know that in M&A. Lets say you are advicing the company being acquired. You have to put a value on it, right?
When you work in a M&A focused firm many transactions will involve taking on debt. Say you are advicing company A's acquisition of company B. There are many ways for comapany A finance this acquisition, one would be to leverage company B.
Which one would you say is more important to know how to do or which is stressed more in interviews for summer analyst positions? LBO or DCF Modeling? At my current internship my boss volunteered to help me at some point before I left to either walk me through and teach me DCF or LBO modeling, but not both. I'm stuck as to which one to ask for his help with.
DCF more relevant.
understand the theory behind both... it should be relatively easy to talk through the principles even if you haven't done it before
Possimus doloribus quia ut quod. Soluta aut omnis ullam molestiae qui. Possimus et ducimus rerum sunt rem rerum cum. Modi error aut ea iste modi dignissimos. Aut et exercitationem voluptas dolor distinctio ipsam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...