What is Investment Banking? | Quick Primer
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M&A Guide | Understanding Mergers and Acquisitions
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Accretion/Dilution Analysis in M&A
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Merger Model Build | Step-by-Step Guide
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Initial Public Offering (IPO)
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M&A Deal Structuring | Asset Sale vs. Stock Sale
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Investment Banking Pitch Book | Examples of Real M&A Presentations
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Synergies in M&A | Revenue vs. Cost Synergies
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Accretion/Dilution Analysis
Accretion/Dilution AnalysisM&A Model: Accretion/Dilution Analysis An important part of investment banking is understanding mergers and acquisitions (M&A). Within M&A, One of the core models investment banking analys...
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Asset Sale vs Stock Sale
Asset Sale vs Stock SaleWhat is Stock Sale vs. Asset Sale? When one company acquires another company, what does the seller actually give the buyer? The answer depends on whether the deal is structured legally as a stock sale...
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Backward Integration
Backward IntegrationWhat is Backward Integration? Backward Integration is a strategy where a company gains more control over the functions in the earlier stages of the value chain, i.e. moving “upstream”. The...
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Boutique and Middle-Market Investment Banks
Boutique and Middle-Market Investment BanksBoutique and Middle-Market Investment Banks Directory In the following post, we have compiled a comprehensive list of over 600+ boutique and middle-market investment banks in the U.S.
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Boutique Investment Banks
Boutique Investment Banks*Updated for 2022: List of Boutique and Middle-Market Investment Banks* Boutique, Industry-Focused and Middle Market U.S. Investment Banks Miller Buckfire & Co. (Restructuring focused) Morgan Keeg...
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Breakup Fees and Reverse Termination Fees in M&A
Breakup Fees and Reverse Termination Fees in M&ABreakup fees A breakup fee refers to a payment a seller owes a buyer should a deal fall through due to reasons explicitly specified in the merger agreement. For example, when Microsoft acquired Linked...
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Bulge Bracket Investment Banks
Bulge Bracket Investment BanksBulge bracket investment banks Wall Street Prep put together this list of the top global bulge bracket investment banks. Learn more about these prestigious banks below. Bank of America Merrill Lynch B...
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Buy Side vs. Sell Side
Buy Side vs. Sell SideWhat is Buy-Side vs. Sell-Side? You'll often hear finance professionals describe their role as being either on the “sell side” or on the “buy side.” As is the case with a lot of finance jargon, what t...
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Canada Investment Banking
Canada Investment BankingInvestment Banking in Canada Canada has a robust investment banking industry that supports the domestic market and serves as a global hub for mining and resource companies. Investment banking in Canad...
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Cash vs. Stock Acquisition in M&A
Cash vs. Stock Acquisition in M&A[caption id="attachment_21584" align="alignright" width="392"] Source: Thomson Reuters[/caption] Cash vs. Stock Consideration in M&A In acquisitions, buyers usually pay the seller with cold, hard...
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Chinese Wall
Chinese WallFINRA 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”...
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Confidential Information Memorandum (CIM)
Confidential Information Memorandum (CIM)What is a CIM? A Confidential Information Memorandum (CIM) is an M&A document prepared by a company in an effort to solicit indications of interest from potential buyers.
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Conglomerate Merger
Conglomerate MergerWhat is Conglomerate Merger? A Conglomerate Merger is the combination of two or more companies that each operate in distinct, seemingly unrelated industries. A conglomerate merger strategy combines se...
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Control Premium
Control PremiumWhat is Control Premium? The Control Premium (%) is the differential between the offer price per share and the acquisition target’s unaffected market share price, prior to speculative rumors of...
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Day in the Life of an Investment Banking Analyst
Day in the Life of an Investment Banking AnalystWhat is a Day in the Life of an Investment Banking Analyst? A day in the life of an investment banking analyst is rather unpredictable as part of working in investment banking is becoming accustomed t...
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Direct Listing
Direct ListingWhat is Direct Listing? Direct Listing is the process by which a company goes public by getting listed on an exchange and offering existing shares directly to the open market.
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Divestiture
DivestitureWhat is a Divestiture? A Divestiture occurs when a corporation proceeds with either a partial or an outright sale of a business segment and the assets belonging to the unit.
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Dry Powder
Dry PowderWhat is Dry Powder? Dry Powder is a term referring to capital committed to private investment firms that still remains unallocated. Under the specific context of the private equity industry, dry powde...
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Earnouts in M&A
Earnouts in M&A[caption id="attachment_22061" align="alignright" width="320"] This will all be yours. Maybe.[/caption] What is an Earnout? An earnout, formally called a contingent consideration, is a mechanism used...
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Exchange Ratios in M&A
Exchange Ratios in M&AFor a deal structured as a stock sale (as opposed to when the acquirer pays with cash — read about the difference here), the exchange ratio represents the number of acquirer shares that will be issued...
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Fairness Opinion
Fairness OpinionWhat is Fairness Opinion? In the M&A context, a fairness opinion is a document provided by the seller’s investment banker to the seller’s board of directors attesting to the fairness of a transact...
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Finance Careers Infographic
Finance Careers InfographicCorporate Finance Careers: Financial Services Industry So you want to break into a career in finance? Buy side or sell side? M&A or private equity? Here we've put together an infographic showing a...
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Financial Modeling Certification
Financial Modeling CertificationWhat is the Best Financial Modeling Certification? The Financial Modeling Certification designed by Wall Street Prep is the most widely recognized, “industry-standard” certificate availabl...
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Financing Fees
Financing FeesWhat are Financing Fees? When a company borrows money, either through a term loan or a bond, it usually incurs third-party financing fees (called debt issuance costs). These are fees paid by the borro...
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Football Field Valuation
Football Field ValuationWhat is the Football Field Valuation? One of the most common slides in an investment banking pitch book is the football field. The football field is a floating bar chart in Excel that puts several val...
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Form S-1 Filing
Form S-1 FilingWhat is Form S-1 Filing? The Form S-1 Filing is a mandatory registration form that companies must submit to the Securities and Exchange Commission (SEC) prior to being listed on a public exchange (e.g...
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Forward Integration
Forward IntegrationWhat is Forward Integration? Forward Integration is a strategy wherein a company obtains more control over activities that occur in the later stages of the value chain, i.e. “moving downstream...
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Front Office vs. Back Office
Front Office vs. Back OfficeFront Office vs. Back Office: Investment Bank Roles The roles in an investment bank can be separated into three distinct parts: the front office, the middle office, and the back office. Each sector is...
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History of Investment Banking
History of Investment Banking[caption id="attachment_19955" align="alignright" width="267"] J.P. Morgan[/caption] History of Investment Banking Undoubtedly, investment banking as an industry in the United States has come a long w...
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Horizontal Integration
Horizontal IntegrationWhat is Horizontal Integration? Horizontal Integration occurs from mergers among companies directly competing in the same or closely adjacent markets. The companies involved in a horizontal merger are...
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Hostile Takeover
Hostile TakeoverWhat is a Hostile Takeover? A Hostile Takeover refers to a bid to acquire a target company, in which the board of directors of the target is not receptive to the offer and may even attempt to prevent...
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Hours in Investment Banking
Hours in Investment Banking[caption id="attachment_6257" align="alignright" width="300"] It's time analysts brought their grievances to their MDs. That could only end well.[/caption] After clocking in consecutive 90 hour work w...
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Initial Public Offering (IPO)
Initial Public Offering (IPO)What is an IPO? An Initial Public Offering (IPO) is the process wherein a privately held company issues equity in the form of stock to the public markets for the first time.
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Investment Bank Overview
Investment Bank OverviewOverview of an Investment Bank In the following post, we’ll briefly break down the various divisions of an investment bank and the services performed, including the changes that have shaped the...
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Investment Banking Career Paths
Investment Banking Career PathsInvestment Banker Positions: Junior to Senior Progression The career of an investment banker progresses along a fairly standard path. Investment banking positions from junior to senior: Analyst (grunt...
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Investment Banking FAQ
Investment Banking FAQInvestment Banking FAQ: Guide for Beginners Q. What is an investment bank? An investment bank is a financial institution that assists wealthy individuals, corporations, and governments in raising capi...
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Investment Banking in Hong Kong
Investment Banking in Hong KongGlobal & Domestic Investment Banks in Hong Kong The landscape for investment banking in Hong Kong is bifurcated into global banks and domestic banks. For investment banking business involving majo...
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Investment Banking Industry
Investment Banking IndustryInvestment Banking Industry An investment bank is a financial intermediary that performs a variety of services, primarily: Raising Capital and Security Underwriting Mergers & Acquisitions Sales...
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Investment Banking Internship Guide
Investment Banking Internship GuideHow to Prepare for Remote Investment Banking Internships? The following Remote Investment Banking Internship Guide explains virtual internships at elite boutique (EB) and bulge bracket banks (BBs) ami...
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Investment Banking Pitchbook
Investment Banking PitchbookWhat is a Pitch Book? A Pitch Book, or “pitch deck”, is a marketing document presented by investment banks to existing and potential clients to sell their advisory services.
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Investment Banking Post-2008 Financial Crisis
Investment Banking Post-2008 Financial CrisisFinancial Crisis (Post-2008): Investment Banking Recession The greatest global financial crisis since the Great Depression was triggered in 2008 by multiple factors including the collapse of the subpr...
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Investment Banking Primer
Investment Banking PrimerWhat is Investment Banking? Investment Banking is a segment of the financial services industry that delivers financial and strategic advisory services to clients on matters pertaining to M&A trans...
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Investment Banking Resume Template
Investment Banking Resume Template[caption id="attachment_6198" align="alignright" width="210"] Investment Banking Resume Template[/caption] Investment Banking Resume Template Writing an effective, succinct investment banking resume i...
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Investment Banking vs. Private Equity
Investment Banking vs. Private EquityInvestment Banking vs. Private Equity: What is the Difference? The private equity (PE) industry tends to be a common exit path for investment banking analysts and management consultants. As a result,...
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Investment Banks List
Investment Banks ListInvestment Banks List Here we provide a downloadable list of investment banks, broken out by type (global, boutique, US focused, etc...), with links to each firm's contact information. Click the image...
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Letter of Intent (LOI)
Letter of Intent (LOI)LOI Definition: Letter of Intent in M&A An LOI is a letter from the buyer that states the broad terms of what a definitive agreement might look like, including the purchase price and form of consi...
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M&A Accounting Rules
M&A Accounting RulesM&A Accounting rules changed dramatically in 2001 under FAS 141 and FAS 142. EG8NB8T4PTHQ In addition to the elimination of pooling, goodwill would no longer be amortized for book purposes. In 20...
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M&A Accretion/Dilution Model (Part 1)
M&A Accretion/Dilution Model (Part 1)[caption id="attachment_6255" align="alignright" width="150"] Accretion dilution slide from Lazard's pitchbook to Tower Group.[/caption] Note: you can find a more recent version of this lesson by clic...
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M&A Accretion/Dilution Model (Part 2)
M&A Accretion/Dilution Model (Part 2)[caption id="attachment_6255" align="alignright" width="150"] Accretion dilution slide from Lazard's pitchbook to Tower Group.[/caption] Note: you can find a more recent version of this lesson by clic...
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M&A Advisory Services
M&A Advisory ServicesWhat is M&A Advisory? M&A Advisory services are provided by investment banks hired to guide corporations through the complex world of mergers and acquisitions.
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M&A Due Diligence
M&A Due Diligence[caption id="attachment_21726" align="alignright" width="450"] People in the know call due diligence "due dili," As in, "I'm only 180 hours of due dili away from some sleep."[/caption] Due Diligence i...
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M&A Filings
M&A FilingsWhat are M&A Filings? When analyzing M&A transactions, finding the relevant documents is often the hardest part of the job. In an acquisition of a public target, the type of publicly available...
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M&A Interview Questions
M&A Interview QuestionsM&A Interview Questions Guide This M&A Interview Questions post summarizes the most common questions asked in investment banking interviews to help those preparing to recruit for internships o...
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Material Adverse Change (MACs)
Material Adverse Change (MACs)What is a Material Adverse Change (MAC)? A Material Adverse Change (MAC) is one of several legal mechanisms used to reduce risk and uncertainty for buyers and sellers during the period between the dat...
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Merger Arbitrage
Merger ArbitrageWhat is Merger Arbitrage? Merger arbitrage is an investment strategy that seeks to profit from the uncertainty that exists during the period between when an acquisition is announced and when it is for...
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Merger Model
Merger ModelWhat is a Merger Model? A Merger Model measures the estimated accretion or dilution to an acquirer’s earnings per share (EPS) from the impact of an M&A transaction.
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Mergers and Acquisitions Guide (M&A)
Mergers and Acquisitions Guide (M&A)What is M&A? Mergers and Acquisitions (M&A) is an umbrella term that refers to the combination of two businesses. M&A gives buyers looking to achieve strategic goals an alternative to orga...
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Microsoft-LinkedIn Merger Timeline
Microsoft-LinkedIn Merger TimelineM&A Case Study: Microsoft-LinkedIn Acquisition Timeline M&A transactions can get complicated, with no shortage of legal, tax and accounting issues to sort out. Models are built, due diligence ...
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Net Identifiable Assets
Net Identifiable AssetsWhat are Net Identifiable Assets? Net Identifiable Assets, in the context of M&A, refer to the fair value of an acquisition target’s assets once the corresponding liabilities have been deducted.
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No-Shop and Go-Shop Provision in M&A
No-Shop and Go-Shop Provision in M&A[caption id="attachment_22056" align="alignright" width="450"] No-shops prevent sellers from shopping the deal to higher bidders[/caption] The no-shop provision When Microsoft acquired Linkedin on Jun...
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Poison Pill Defense
Poison Pill DefenseWhat is the Poison Pill Defense? The Poison Pill Defense is a type of strategy utilized by companies attempting to thwart a hostile takeover. With a poison pill strategy, existing shareholders — and n...
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Premiums Paid Analysis in M&A
Premiums Paid Analysis in M&A[caption id="attachment_21591" align="alignright" width="281"] Source: Bloomberg[/caption] What is Premiums Paid Analysis? A "purchase premium" in the context of mergers and acquisitions refers to the...
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Private Placement
Private PlacementWhat is a Private Placement? A Private Placement is a transaction involving the sale of equity and debt securities directly to accredited, institutional investors. The securities offered in private pl...
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Proof of Funds (POF)
Proof of Funds (POF)What is Proof of Funds? Proof of Funds (POF) refers to documentation – typically in the form of a letter – confirming that a buyer has sufficient funds to complete the transaction.
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Prospectus
ProspectusWhat is the Prospectus? A Prospectus is a formal document filed with the Securities and Exchange Commission (SEC) by companies intending to raise capital by offering securities to the public.
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Public Information Book (PIB)
Public Information Book (PIB)What is the Public Information Book? The Public Information Book (PIB) is a document containing a compilation of publicly available data and market research on a specific company (i.e. existing or pot...
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Purchase Price Allocation (PPA)
Purchase Price Allocation (PPA)What is Purchase Price Allocation? Purchase Price Allocation (PPA) is an acquisition accounting process of assigning a fair value to all of the acquired assets and liabilities assumed by the target co...
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Red Herring Prospectus
Red Herring ProspectusWhat is the Red Herring Prospectus? The Red Herring Prospectus is a preliminary document drafted by companies during the initial stages of undergoing an initial public offering (IPO).
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Regional Investment Banks List
Regional Investment Banks List*Updated for 2021: List of Boutique and Middle-Market Investment Banks* Large US Regional Investment Banks SunTrust (Robinson Humphrey) Wedbush Securities BB&T KeyCorp (KeyBanc Capital Markets) PN...
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Reverse Merger
Reverse MergerWhat is a Reverse Merger? A Reverse Merger occurs when a privately-held company acquires a majority stake in a publicly-traded company. A reverse merger – or “reverse takeover” – is most often underta...
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Secondary Offering
Secondary OfferingWhat is a Secondary Offering? A Secondary Offering describes the sale of post-IPO shares on the secondary market among investors. However, the term can also refer to the issuance of additional shares...
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Securities Underwriting
Securities UnderwritingWhat is Underwriting? Underwriting is the process in which an investment bank, on behalf of a client, raises capital from institutional investors in the form of debt or equity. The client in need of c...
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Sell Side Process
Sell Side ProcessWhat is the Sell Side Process in M&A? Sell Side Process in M&A describes the deal process from the seller’s (and its financial advisors’) perspective.
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Seller Financing
Seller FinancingWhat is Seller Financing? Seller Financing, or a “seller note”, is a method for buyers to fund the acquisition of a business by negotiating with the seller to arrange a form of financing.
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Seller’s Discretionary Earnings (SDE)
Seller’s Discretionary Earnings (SDE)What is Seller’s Discretionary Earnings (SDE)? Seller’s Discretionary Earnings (SDE) measures the normalized, operating profitability of small to mid-sized businesses (SMBs). Conceptually,...
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Spin-Off
Spin-OffWhat is a Spin-Off? A Spin-Off refers to when a parent company sells a specific business unit or division, i.e. a subsidiary, to effectively create a new standalone company. As part of the spin-off, t...
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Superday
SuperdayWhat is a Superday? A Superday is the final step of the interview process for internships and on-cycle analyst/associate roles in investment banking, right before offer letters are sent out.
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Synergies in M&A
Synergies in M&AWhat are Synergies in M&A? Synergies are the estimated cost savings or incremental revenue arising from a mergers and acquisitions (M&A). Estimating the potential revenue or cost synergies in...
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Tender Offer vs. Merger
Tender Offer vs. MergerA statutory merger (aka “traditional” or “one step" merger) A traditional merger is the most common type of public acquisition structure. A merger describes an acquisition in which two companies joint...
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The JP Morgan M&A Bible, circa 1998
The JP Morgan M&A Bible, circa 1998J.P. Morgan M&A Reference Manual I was feeling nostalgic this morning and dusted off my old M&A bible to see how much things have changed in the late 90s. For several years, this manual found...
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Top 30 Masters in Finance
Top 30 Masters in Finance[caption id="attachment_20876" align="alignright" width="300"] London School of Economics[/caption] Below is a link to efinancialcareer's ranking of the top Masters in Finance programs for getting a j...
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Top M&A Deals Gone Bad
Top M&A Deals Gone BadFirmex, a virtual data room provider sent over a nice infographic which lists the top 10 due diligence disasters. We talk about some of these specific deals in our Premium Package financial modeling p...
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Vertical Integration
Vertical IntegrationWhat is Vertical Integration? Vertical Integration involves the merger of two or more companies that serve different functions in the supply chain. In such a case, the entire (or most) of the supply c...
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Will Wall Street Prep Help Me Get Into Investment Banking?
Will Wall Street Prep Help Me Get Into Investment Banking?[caption id="attachment_6276" align="alignright" width="300"] Wall Street Prep's Self Study Videos Facilitate Learning[/caption] Q: What is the validity and authenticity of Wall Street Prep's Self Stu...
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Zynga IPO Valuation
Zynga IPO Valuation[caption id="attachment_6246" align="alignright" width="150"] Zynga founder Mark Pincus will only get a $9b valuation. Solution? Claw back employees' stock options![/caption] Zynga IPO Valuation: Exam...
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