One of the core models investment banking analysts and associates have to build when analyzing an acquisition is the accretion/dilution model. The underlying purpose of such an analysis is to assess the impact of an acquisition on the acquirer’s earnings per share (EPS).
Why is this important? Well, we’ll get to that in a second, but first let’s talk about the basic mechanics involved in performing such an analysis. First, some definitions: Continue reading →
Below is an example of a real investment banking pitchbook, in all its mundane glory. Since we sign NDAs with our clients, it has always been difficult for us to share a real pitchbook example. Well, the good news is that Oracle has made one available to the world, thanks to a feud between it and the software company Autonomy, recently acquired by HP:
The nature of the feud is interesting as it sheds light on how investment banking pitches are presented to clients, so I recommend everyone read the dealbreaker article below.
People who have real jobs are sometimes surprised to learn how much of investment banking consists of hopeless pitching. Your team puts together a forty-page slide deck with sixty pages of appendices, proofreads it repeatedly, updates numbers every day for two weeks, and prints a dozen glossy spiral-bound copies. Then you lug them halfway across the continent, slog through the first five pages with an increasingly bored potential client, are politely rebuffed, and then cleverly ask “hey do you want any extra copies of the presentation for your colleagues?” so you don’t have to carry them back on the plane. Glamorous work. Full article
