Open to all questions about career progression, all things M&A, working for a Fortune 500, avoiding IB, quitting job for a start-up, MBA, etc.. Background * Former Director of Corporate Development for highly acquisitive diversified industrial company (14 transactions representing over $1.5 billion in transaction value) * 8 years of Corporate Development experience (promoted 4 times in 8 years from Analyst – Director) * Quit job in 2019 to start productivity software company * Decided to avoid IB after starting career * Started career in Big 4 valuations practice * BS in Finance and
27 Jul 2020
Found this story very interesting today. Link below. Sycamore trying to argue that by delaying rent and furloughing workers, L Brands violated the ordinary course clause of the merger agreement. To be clear, it doesn't appear they are arguing material adverse effect (maybe throwing it in there, but not their primary argument). Here's my question: isn't ordinary course designed to prevent neglect of the business during the pre-closing period? This would seem the opposite. L Brands is retaining 45% ownership post-deal, and clearly taking these measures to preserve value. I've seen enough
23 Apr 2020
I have been an owner/operator of clothing and eyewear brands over the last 7 years. Our brand growth has stalled out and my partners (Family office) asked me back in October to look at new ways to jump start the company. FYI, we are based in Spain. Our original idea was to start with a roll-up strategy and offer stock for stock mergers with several brands to build up a larger holding company. After doing some outreach and lots of cold calling we received soft commitments from 6 brands, it would total about 18€ million in sales, 2€ million EBITDA. From there we could probably do more bolt ons
29 Mar 2020
I have noticed that Big4 offer pre-deal purchase price allocation services. Its usually a rough estimate. Why would a public/private company or a sponsor want to know this? How does it tie into strategy and earnings? Do you have any resources to learn more about these things?
26 Feb 2020
Both industries are interesting and have a lot of developments happening within them. I know that Technology and Healthcare go hand in hand often - does this mean that the Healthcare group will cover a healthcare technology company or would that be covered by the Technology group, does anyone have any insight into how this works? Is one industry better for PE/VC than the other? It seems as though with TMT you could transition into a startup/tech company/VC/PE, it seems with healthcare it is more common that analysts would go into PE? Does anyone have any insight into this or could argues pros
01 Jun 2020
How is the corporate development function of company generally viewed during recessions? Do companies generally layoff a significant portion of the CD team if deals are halted or does the CD team pivot to assist in other special projects?
20 Aug 2019
Hi All, Was wondering if anyone could help me with the question: If a company A buys 80% of company B for $100, where Company B has a fair value of 100. What is the impact on the Balance Sheet? (Apologies if this is not enough info, If anyone could use some dummy numbers to illustrate the point I would be very grateful!) I have an idea of income statement - everything consolidated and at the bottom for Net Income we subtract the 20% of Company B's Net Income from the consolidated Net Income. For the Balance Sheet my thinking is it is fully consolidated. I also know Company B's shareholder
27 Oct 2019
According to reports, Goldman Sachs executives are considering acquiring E-Trade Financial Corporation and a possible merger with US Bank. Both deals would be major moves for Goldman, as US Bank now has more than 18 million customers and 3,000 branches, while the retail brokerage E-Trade manages assets worth $346 billion. https://www.businessinsider.com/goldman-eyes-etra…
26 Nov 2019
I am just wondering why corporates don't try to boost their return on equity if they can lever up and buy strategic companies in their space? Is there any logic behind it or is it just conservatism?
25 Aug 2019
When valuing a company through the comparables methodology, why do we apply the transaction multiple result to LTM EBITDA and trading multiples result to forward EBITDA?
30 May 2019
Enough with "Project Eagle"! Let's spice it up. Here are some suggestions: Dumbledore, Voldemort. Shenanigans, Dunkaroo, Ring Pop, Nickelback, DMB, Wolverine, AF.
19 Dec 2018
I'm trying to read up on a few M&A deals so I have some stuff to talk about if the topic comes up. I am from outside the industry so what are some things I should focus on when I read about deals. I see the deal size, possible synergy size, etc... but what other takeaways should I get when I read about this stuff?
13 Aug 2018
Suppose a middle market company hires an investment banking firm to sell the business with a broad auction process. But before the broad auction process begins, a PE firm makes what seems to be a reasonably high take it or leave it offer. If you pass then that PE firm will refuse to participate in the auction process. Essentially the PE firm is trying to preempt the competitive auction process and get the deal before anyone else has a look. Would going through to a broad auction process result in a higher price because it is more competitive? Or, is it better to just sell to a firm that is
09 Aug 2018
Hey guys - I am researching a business idea and want to better understand junior banker's / private equity experience with outsourcing a portion of their work load to India (or wherever else work is outsourced). 1) Does your firm offer outsourcing capabilities for lower level work (trading / transaction comps, profiles, combining spreadsheets etc.)? 2) If yes to #1, how has your experience been with outsourcing? Do you find it valuable/does it save time? 3) Would it be more valuable if you were in the same time zone as the outsourcer and could contact via instant messaging/phone instead of e
18 May 2018
How is Moelis' Boston office? Do they do lots of deals over there, or would that be a very different experience from the NYC office? Interested in seeing if exit opps would be the same as in NYC office. Thanks all!
28 Jan 2018
Hey guys, I've recently been referred by a friend for an M&A analyst position and got an email by an associate asking for coffee along with another analyst. Since they have my CV already, should I see this as a formal interview and prepare my technicals and qualitatives or is it just a pre-screening in which I should have a good story, some good questions to ask and be attentive? Thanks in advance!
23 May 2018
Hi everyone, I am preparing for an IB interview Summer Analyst position and was wondering if anyone had any suggestions of 2 good companies that should merge and why? Cheers!
29 Jan 2018
Hi, In about a week I'll be starting my first finance internship, which will be on the research team at a boutique PWM firm in the mid-sized city where I live. The issue is that I am a junior, and want to eventually go into M&A or S&T, obviously most of the people in those fields are there because they got a summer internship while a sophomore or junior. I'm aware that I'm seriously late to the game in terms of skills and experience. What is the best way for me to leave PWM after I graduate, and get into IB? If I'm offered a job at the PWM firm after graduation should I take that and try later
30 Apr 2018
I've recently been reading a bunch of books: M&A Titans, Barbarians at the Gate, Den of Thieves, Predators Ball, Big Deal: 2000 and Beyond, Rainmaker....among others. It has me wondering. Who are today's top bankers? Are there any legends-in-the-making out there currently? Is this question even relevant being that banking as an industry in general has completely changed? These books all clearly outlined the top guns back in the 1980's era (give or take). Perhaps bankers will never be as influential again. Looking at Drexel's alumni it appears that anyone who worked there went on to become
22 Jan 2017
I want to find a large data set of bunch of M&A activities. If I can find ones that haven't closed, that'd be nice too. Where can I find them?
23 Feb 2019
I've never worked in the front office of a bank before, so I'm hoping I could get some help for how I could spin my experience to get me closer to an IB/M&A/ER internship with a bank. I had the opportunity to help out with four deals which made it to the post-LOI stage (a few closed), including industry research, competitor analysis, customer analysis, attrition analysis, internal decks, taking notes during calls etc. I would say my work did help with coming up with some of the actual modelling assumptions, but I did not help with actual modelling or valuations. Besides that, I spent the
12 Aug 2019
Hi guys, 1. What would be a good (practical) resource to learn about the various way to acquire a business please? Of course there is the LBO but I came across a number of other possibilities such as OBO, LMBO, BIMBO etc. 2. Any other "creative" way to acquire businesses? Have some of you experience on structuring deals with seller financing and/or earn-outs? 3. Any recommended resource on the topic? 4. How to best include these in a deal, key clauses/formulas/KPIs to use & track? Thanks
17 Jun 2020
Here's a video quick 101 on Luxottica. Here's a Forbes article if you don't feel like watching the video.
Essilor is a renowed lens crafter, Luxottica owns a ton of major frame companies, now the two will combine after Essilor agreed to buy Luxottica for $24 bil in stock. Luxottica will be delisted and the new company will be known as EssilorLuxottica. ![Balance Market](https://assets.bwbx.io
19 Jan 2017
Looking to get a better conceptual understanding of merger models. I've done a couple practice ones but never a full model on the job yet, so questions may be rudimentary. Is excess cash put towards the equity purchase price only the Acquirer's cash, or can it include the Target's as well? (already leaning one way on this, but my rationale is weak) To calculate how much leverage the Acquirer can use to buy the Target, would finance-able EBITDA be the Acquirer's standalone EBITDA; Acquirer's EBITDA + Target's EBITDA; or Acquirer's EBITDA + Target's EBITDA + expected synergies? Not urgent but
31 Dec 2016
I am fortunately given the choice between continuing the current M&A route - or moving onto strategy / management consulting within financial services. Both are great companies so the destination isn't the issue. I was wondering whether anyone can share an insight into transitioning from 1 to 2? How typical it is, how viable it is, how relevant it is, and what similar skills would come into use? Cheers guys
22 Dec 2016
I received an email from HR regarding an M&A internship at a large media corporation I'm really interested in. He asked for answers to a few questions before deciding if I'm chosen for an interview next week. One of the questions was what my GPA is. I clearly stated it on my resume along with my year and major (sophomore, math and economics major). I'm concerned because the job description says "Minimum 3.3 GPA," but I have a 3.11. Why did HR ask me this question, and do you think they send this email to all applicants? Should I respond with just my GPA, or add an explanation? Is this going to
04 May 2017
If you work in a semi-related industry (i.e. FPA, financial due diligence etc), and you want to break into corporate development, what experience would be considered better: 1. Spend 1 year working on a single large deal (think USD 100+ billion) that closes or 2. Spend 1 year working on a couple (maybe 3-5) of smaller (USD 1-5 billion) of which some close and some dont. In other words, is size more important than the number of times you do it or is it the other way around?
05 May 2016
Phewwww, it's been a strange ride, fellas. I would like to gloat about my recent career revelations, while hopefully providing some advice/insight to the people who read. I have just finished up a GE-type Financial Management Program at an F100 firm with an offer for an analyst role within the company's Global M&A group. Before coming to this company, I came out of a non-target to work at a very small HF (click on my prof to see my original post on that), but decided to leave after a year and a half. Long-story-put-very-shortly: fund was small, I was being paid shittily & wanted to grow fund
28 May 2016
Guys, I wanted to reach out and see if you had any advice for me as I set out for my senior year. I am graduating with my BA in finance in three years and I have had an internship with a family office doing M&A and I have also been helping doing corporate financial analysis for one of the companies we purchased since we have had them apart of our portfolio. I wanted to see what you guys thought about me either heading to grad school, sticking with the company I am with, or trying to branch out to something else. I like what I do right now, but the one trouble with family offices is the deal
23 Jun 2017
Hey guys! Currently studying and preparing myself to pursue a career in IB. Studying on the technicals and what not. Anyway, if say you're doing analysis for buy-side M&A looking for candidates for acquisition, and the companies are private and information is not available: Say you can't find it in trade journals, industry reports, equity research, etc. - Do investment banks reach out to management to ask for financial information. How do they go about this? Sell-side M&A is relatively straightforward, management will provide info to the IBs to help sell their company, it's in their interest
05 Nov 2017
Alright ladies and gents - I've spent the past year trying to figure out my plan, as I'm sure many of you have done. Looking for some guidance as I'm on the fence. I'm focused on spending the next several years in transactions. There are two paths I can take: 1) Lateral into acquisitions and stay put 2) Get REIB experience with a MM bank for a few years, then transition into acquisitions This is a major decision, and I'm not sure which way to go. High level, I think having exposure in REIB would be extremely valuable. But, there are some drawbacks and want to see if you all can help prove
15 Feb 2016
Hi all, I am posting this thread because I was wondering what do you guys think about doing a M&A internship in industry to break into IB. I mean: if combined with relevant experience, would doing such an internship from an industry point of view be relevant to recruiters? How would they see it? Would it be useful for someone looking to break into Investment Banking? The internship in question would be in a leading firm, but in a very niche sector. Obviously, the perspective would focus more on synergies for the actual company, so I was thinking it could be a valuable experience. Thank you for
21 Jun 2015
This is a throwaway account since I'm a regular poster but want to be anonymous. Graduating from a target soon. I recently got an offer for an active corporate development team at a large energy company (think SLB/HAL/PAA/KMI/EOG/COP). It's a strong company and we'd be doing about 10 or so acquisitions each year with most targets having an EV between $100MM to $200MM. I'd likely see at least one deal in the $500MM to $1BN range but might not. Either way, it's a small team and I'd definitely get great deal experience. The current environment has me a bit worried and even though this team has
21 Jan 2016
Dear WSO, I need some advice as I've been pondering and losing sleep day and night on this topic. I'm 30, in ER in a MM for 4.5 years prior to which I was an auditor for 2 years (gained amazing accounting skills, work bored me to death, made the switch through massive networking/hustling at the time). The industry I cover has seen an exodus for some reason from some tier-1 BB sell-side ER desks this year and now I've interviewed and been offered a VP position at one of these desks (top-tier BB). As fate would have it, I've also gotten into a top b-school (think H/S/W) where my initial aim was
18 Jul 2015
In all-stock acquisitions for two public co's, what happens to the market cap of the combined new co? I'm not talking about what happens when the deal is announced - acquirer's stock goes down, target stock goes up (generally). I'm asking specifically about post-deal close and the acquirer's stock is issued to target's shareholders.
11 May 2015
Currently studying IB and the different main activities (capital raising, M&A Advisory, etc). It would make sense to think that a down financial market would not be favorable for capital raising especially ECM. However, what about an acquisition either by a strategic buyer or a financial sponsor? If the acquirer is public and decides to use a consideration of cash and stock, then I can see that this could be unfavorable to them since the value of their stock is lower, but then again, if the target company is public as well, they could also be roughly equally affected, cancelling out the effect
20 Nov 2017
On Monday, PepsiCo announced its plans to acquire Sodastream for 3.2 billion dollars. This Seeking Alpha article describes SodaStream's business model: [quote] First, sell the consumer the starter kit consisting of the carbonated drink maker, an initial bottle of CO2 and some empty bottles and maybe a flavor syrup. After that, the consumers must buy CO2 refills and SodaStream also offers a wide range of syrups from cola flavour to organic elderflower to add to
23 Aug 2018
So when Oracle bought Sun Microsystems it paid a premium for the equity but how did it pay for the debt? Or how is debt treated? Wouldn't the debt holders want a premium? Or does the debt just get transferred to Oracle? Is it different for public companies vs property? I'm asking this since when you buy a house don't you pay for the entire house not just the equity portion of the house owner?
04 Jul 2014
Hi, In the current low-yield environment I imagine lots of firms look to corporate consolidation through M&A in hopes of generating shareholder value and improve stock performance. I have little to no experience myself doing M&A, and would really appreciate if someone with more experience could elaborate on what they are looking for evaluating M&A-opportunities. I realize every deal is different, but: Why does a company like Unibail-Rodamco buy Westfield? In the initial / idea phase - why does a deal make sense and what are you looking for (first) to support that idea? What are some of the key
06 Aug 2018
Hi everybody ! Would like to know why would you rather advise on small & mid-cap M&A operations rather than large cap ? Large cap seems more interesting but I spoke to insiders saying the opposite...
16 Nov 2016
Hey Monkeys, I have an offer from a no-name boutique in a 2nd/3rd tier city, which I wasn't that stoked about. But after talking with the MD, he said I would do mostly M&A (sell-side and buy-side), but I could also work with their small PE arm (there is also a restructuring arm which I could maybe get exposure to as well). This sounds really interesting - does anyone have any experience with something similar? Is this "normal?" Will this help me lateral to a larger MM/BB/EB after a year because I have M&A and PE experience? Let's say hypothetically I did some M&A deals and some PE deals in the
24 Oct 2016
When looking to fund a M&A transaction, do you only consider funding the equity portion or do you also include debt? I have seen some sources and uses schedules from previous transactions and they typically, if not always, include the debt to be acquired but a transaction that I am currently working on, we only consider the equity portion. The rationale is that the debt will simply be taken over by us, the acquirer, and thus does not need to be funded. Can someone please shed some light on this topic? Please keep it straight forward, i.e. only debt and equity and disregard preferreds, options
11 May 2016