The Prospectus

Musings on Financial Modeling and Investment Banking

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The Investment Banking Interview

It is no secret that the investment banking interview process is incredibly competitive. What may be surprising is that there is actually a well-defined sequence of steps one can take to dramatically improve chances of receiving an offer. In this article we provide an overview of the process, as well as the most common...

March 22nd, 2012| The Wall Street Prep Team| IB Interview Tips| 0 Continue Reading

Stock based compensation treatment in the DCF is almost always wrong

A recent SeekingAlpha blog post questioned Amazon management's definition of free cash flows (FCF) and criticized its application in DCF valuation.  The author's thesis is that Amazon stock is overvalued because the definition of FCF that management uses - and that presumably is used by stock analysts to arrive at a valuation for Amazon via a DCF...

March 27th, 2015| Matan Feldman| The Prospectus Perspective| 0 Continue Reading

Goodwill amortization is back… for private companies

Starting in 2014, private companies can elect to amortize goodwill on a straight-line basis over 10 years.  This is an election (not a requirement), and enables private companies to forgo the costly annual impairment tests that are required of public companies (although they will continue to be required to run an impairment test if a "triggering event" occurs)....

March 20th, 2015| Matan Feldman| The Prospectus Perspective| 0 Continue Reading

BLOOMBERG: The Fuzzy, Insane Math That’s Creating So Many Billion-Dollar Tech Companies

Below is a link to a great article addressing some of the major reasons that traditional valuation isn't driving early-stage valuation.  In our cap tables course we spend a great deal of time talking about how to build the various provisions discussed in this article into the waterfall analysis that identifies returns to the...

March 18th, 2015| Matan Feldman| The Prospectus Perspective| 0 Continue Reading

Listen: From burned out investment banker to founder of Wall Street Prep

Last week I had a chance to sit down with my friend Jared Millman for his new podcast series Dissecting Success.  We spent about an hour talking about how I made the decision to leave JP Morgan and start Wall street Prep. Here's the blurb and link to the podcast - enjoy! Matan Feldman tells us how...

January 9th, 2015| Matan Feldman| WSP In the News| 0 Continue Reading

How Strong is The Chinese Wall Separating Investment Banking and Equity Research?

FINRA fined 10 large investment banks $43.5m for "failing to shield analysts from pressure to promote stocks," specifically claiming that  the "investment banks promised favorable research to Toys “R” Us Inc. and its private-equity owners in 2010 to win roles in its initial public offering." Read full article here: http://www.bloomberg.com/news/2014-12-11/finra-fines-10-wall-street-firms-over-analysts-ipo-pitches.html

December 15th, 2014| Matan Feldman| Investment Banking News| 0 Continue Reading
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DealBook: Private Equity Is Top Choice of Young Wall St. Bankers

If you are curious about exit options after investment banking, Dealbook has given us some numbers for 2014.  36% of junior investment bankers who started two-year jobs in 2012 have now joined private equity firms, while only 27.5% stayed in the same group at their bank. Read the full post here.

December 8th, 2014| Matan Feldman| Investment Banking News| 0 Continue Reading
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Wall Street Prep Coupon – 15% Off Self Study Programs

Wall Street Prep is extending its 15% off Web Special for all Self Study Programs. Use Wall Street Prep coupon code "webpromo" at checkout to claim this offer. Offer valid for a limited time only. Learn More at wallstreetprep.com/programs.

June 16th, 2014| The Wall Street Prep Team| WSP In the News| 0 Continue Reading
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Bain Group recapitalizes its BMC investment

In our LBO courses, our students learn that private equity investors have 3 strategies that they can deploy to exit their investments – 1) sell the investment company to a strategic or financial acquirer; 2) take the company public; or 3) recapitalize their investment, which involves paying themselves a dividend and financing it via...

May 30th, 2014| The Wall Street Prep Team| Investment Banking News| 0 Continue Reading

For investment banks, M&A league table rankings are just as important as the deal fees…

With M&A league tables serving as a constant barometer (they can be found in every single pitchbook) of investment banks' success and activity in advising their clients, it's not totally surprising that several investment banks decided to forego fees in exchange for advisory deal recognition. Morgan Stanley, Goldman Said to Swap Fees for Deal...

March 10th, 2014| The Wall Street Prep Team| Investment Banking News| 0 Continue Reading