Investment Banking and Private Equity

  1. Core Valuation Methodologies
    1. Discounted Cash Flow (DCF) Analysis
      1. DCF Model Components
        1. Free Cash Flow Projections
          1. Revenue Forecasting
            1. Top-Down Market Analysis
              1. Bottom-Up Build Analysis
                1. Historical Growth Analysis
                2. Operating Expense Projections
                  1. Fixed vs. Variable Costs
                    1. Operating Leverage Analysis
                    2. Working Capital Modeling
                      1. Days Sales Outstanding (DSO)
                        1. Days Inventory Outstanding (DIO)
                          1. Days Payable Outstanding (DPO)
                          2. Capital Expenditure Forecasting
                            1. Maintenance CapEx
                              1. Growth CapEx
                                1. Asset Replacement Cycles
                              2. Terminal Value Calculation
                                1. Perpetuity Growth Method
                                  1. Long-Term Growth Assumptions
                                    1. GDP Growth Considerations
                                    2. Exit Multiple Method
                                      1. Comparable Multiple Selection
                                        1. Multiple Justification
                                      2. Discount Rate Determination
                                        1. Weighted Average Cost of Capital (WACC)
                                          1. Cost of Equity Calculation
                                            1. Risk-Free Rate
                                              1. Market Risk Premium
                                                1. Beta Estimation
                                                  1. Size Premium
                                                    1. Company-Specific Risk
                                                    2. Cost of Debt Calculation
                                                      1. Credit Spread Analysis
                                                        1. Tax Shield Benefits
                                                        2. Capital Structure Weights
                                                          1. Market Value vs. Book Value
                                                            1. Target Capital Structure
                                                      2. DCF Valuation Output
                                                        1. Enterprise Value Calculation
                                                          1. Equity Value Derivation
                                                            1. Per-Share Value Analysis
                                                              1. Sensitivity Analysis
                                                                1. Key Variable Sensitivities
                                                                  1. Scenario Analysis
                                                              2. Comparable Company Analysis
                                                                1. Peer Group Selection
                                                                  1. Industry Classification
                                                                    1. Business Model Similarity
                                                                      1. Size Considerations
                                                                        1. Geographic Scope
                                                                        2. Financial Data Collection
                                                                          1. Public Company Filings
                                                                            1. Market Data Sources
                                                                              1. Data Normalization
                                                                              2. Multiple Calculation
                                                                                1. Enterprise Value Multiples
                                                                                  1. EV/Revenue
                                                                                    1. EV/EBITDA
                                                                                      1. EV/EBIT
                                                                                        1. EV/FCFF
                                                                                        2. Equity Value Multiples
                                                                                          1. Price/Earnings (P/E)
                                                                                            1. Price/Book (P/B)
                                                                                              1. Price/Sales (P/S)
                                                                                                1. Price/Cash Flow (P/CF)
                                                                                              2. Multiple Application
                                                                                                1. Statistical Analysis
                                                                                                  1. Mean and Median
                                                                                                    1. Quartile Analysis
                                                                                                    2. Multiple Selection Rationale
                                                                                                      1. Target Company Application
                                                                                                    3. Precedent Transaction Analysis
                                                                                                      1. Transaction Database Development
                                                                                                        1. Transaction Screening Criteria
                                                                                                          1. Deal Size Considerations
                                                                                                            1. Time Period Selection
                                                                                                            2. Transaction Multiple Analysis
                                                                                                              1. Purchase Price Calculation
                                                                                                                1. Multiple Computation
                                                                                                                  1. Control Premium Analysis
                                                                                                                  2. Synergy Adjustments
                                                                                                                    1. Revenue Synergies
                                                                                                                      1. Cost Synergies
                                                                                                                        1. Synergy Valuation
                                                                                                                        2. Market Condition Adjustments
                                                                                                                          1. Market Cycle Considerations
                                                                                                                            1. Credit Market Conditions
                                                                                                                          2. Leveraged Buyout Analysis
                                                                                                                            1. LBO Model Construction
                                                                                                                              1. Transaction Assumptions
                                                                                                                                1. Purchase Price
                                                                                                                                  1. Transaction Fees
                                                                                                                                    1. Financing Structure
                                                                                                                                    2. Sources and Uses Analysis
                                                                                                                                      1. Debt Financing Components
                                                                                                                                        1. Equity Investment
                                                                                                                                          1. Transaction Costs
                                                                                                                                          2. Debt Schedule Modeling
                                                                                                                                            1. Amortization Schedules
                                                                                                                                              1. Interest Calculations
                                                                                                                                                1. Cash Sweep Mechanisms
                                                                                                                                                2. Financial Projections
                                                                                                                                                  1. Operating Performance
                                                                                                                                                    1. Cash Flow Generation
                                                                                                                                                      1. Debt Paydown
                                                                                                                                                    2. Return Analysis
                                                                                                                                                      1. Internal Rate of Return (IRR)
                                                                                                                                                        1. Equity IRR Calculation
                                                                                                                                                          1. Sensitivity Analysis
                                                                                                                                                          2. Multiple of Invested Capital (MoIC)
                                                                                                                                                            1. Cash-on-Cash Returns
                                                                                                                                                              1. Total Return Analysis
                                                                                                                                                            2. Financing Analysis
                                                                                                                                                              1. Debt Capacity Assessment
                                                                                                                                                                1. Credit Metrics Analysis
                                                                                                                                                                  1. Covenant Compliance Testing
                                                                                                                                                                2. Additional Valuation Methods
                                                                                                                                                                  1. Sum-of-the-Parts (SOTP) Analysis
                                                                                                                                                                    1. Business Segment Identification
                                                                                                                                                                      1. Segment Valuation
                                                                                                                                                                        1. Conglomerate Discount Analysis
                                                                                                                                                                        2. Liquidation Analysis
                                                                                                                                                                          1. Asset Liquidation Values
                                                                                                                                                                            1. Liquidation Costs
                                                                                                                                                                              1. Recovery Analysis
                                                                                                                                                                              2. Asset-Based Valuation
                                                                                                                                                                                1. Tangible Asset Valuation
                                                                                                                                                                                  1. Intangible Asset Valuation
                                                                                                                                                                                    1. Replacement Cost Analysis

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                                                                                                                                                                                5. Private Equity Investment Strategies

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                                                                                                                                                                                7. Mergers & Acquisitions Transaction Process