Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions (Wiley Finance) Hardcover – 22 May 2009
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From the Foreword “Rosenbaum and Pearl succeed in providing a systematic approach to addressing a critical issue in any M&A, IPO, or investment situation—namely, how much is a business or transaction worth. They also put forth the framework for helping approach more nuanced questions such as how much to pay for the business and how to get the deal done. Due to the lack of a comprehensive written reference material on valuation, the fundamentals and subtlety of the trade are often passed on orally from banker–to–banker on a case–by–case basis. In codifying the art and science of investment banking, the authors convert this oral history into an accessible framework by bridging the theoretical to the practical with user–friendly, step–by–step approaches to performing primary valuation methodologies.” –Joseph R. Perella, Chairman and CEO, Perella Weinberg Partners Praise for the Book "Investment Banking provides a highly practical and relevant guide to the valuation analysis at the core of investment banking, private equity, and corporate finance. Mastery of these essential skills is fundamental for any role in transaction–related finance. This book will become a fixture on every finance professional′s bookshelf." — Thomas H. Lee , President, Lee Equity Partners, LLC Founder, Thomas H. Lee Capital Management, LLC "This book will surely become an indispensable guide to the art of buyout and M&A valuation, for the experienced investment practitioner as well as for the non–professional seeking to learn the mysteries of valuation." — David M. Rubenstein , Co–Founder and Managing Director, The Carlyle Group "As a practitioner of hundreds of M&A and LBO transactions during the last 20 years, I recommend this book to advisors, financiers, practitioners, and anyone seriously interested in investment transactions. Rosenbaum and Pearl have created a comprehensive and thoughtfully written guide covering the core skills of the successful investment professional with particular emphasis on valuation analysis." — Josh Harris , Managing Partner, Apollo Management , LP "Valuation is the key to any transaction. Investment Banking provides specific step–by–step valuation procedures for LBO and M&A transactions, with lots of diagrams and numerical examples." — Roger G. Ibbotson, Professor in the Practice of Finance, Yale School of Management Chairman & CIO, Zebra Capital Management, LLC Founder & Advisor, Ibbotson Associates , a Morningstar Company "Investment banking requires a skill set that combines both art and science. While numerous textbooks provide students with the core principles of financial economics, the rich institutional considerations that are essential on Wall Street are not well documented. This book represents an important step in filling this gap." — Josh Lerner , Jacob H. Schiff Professor of Investment Banking, Harvard Business School , Coauthor, Venture Capital and Private Equity: A Casebook "Rosenbaum and Pearl have written the ultimate nuts and bolts guide for valuation. It is the book that every business student should study and every investment banker should use." — Steven Davidoff , Associate Professor, University of Connecticut School of Law The Deal Professor, The New York Times
From the Inside Flap
In the constantly evolving world of finance, a solid technical foundation is an essential tool for success. Due to the fast–paced nature of this world, however, no one has been able to take the time to properly codify the lifeblood of the corporate financier′s work–namely, valuation. Rosenbaum and Pearl have responded to this need by writing the book that they wish had existed when they were trying to break into Wall Street. Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions is a highly accessible and authoritative book that focuses on the primary valuation methodologies currently used on Wall Street—comparable companies, precedent transactions, DCF, and LBO analysis. These methodologies are used to determine valuation for public and private companies within the context of M&A transactions, LBOs, IPOs, restructurings, and investment decisions. Using a step–by–step how–to approach for each methodology, the authors build a chronological knowledge base and define key terms, financial concepts, and processes throughout the book. They also provide a comprehensive overview of the fundamentals of LBOs and an organized M&A sale process. In the aftermath of the subprime mortgage crisis and ensuing credit crunch, the world of finance is returning to the fundamentals of valuation and critical due diligence. This involves the use of more realistic assumptions governing approach to risk as well as a wide range of value drivers. While valuation has always involved a great deal of "art" in addition to time–tested "science," the artistry is perpetually evolving in accordance with market developments and conditions. In this sense, this book is particularly topical–in addition to detailing the technical fundamentals behind valuation, the authors infuse practical judgment skills and perspective to help guide the science.See all Product Description
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Top Customer Reviews
I believe this book is very good for beginners and intermediaries, but still has a lot of potential for improvement to also become more interesting for advanced practitioners. A little expansion with details, more valution aspects and a chapter about restructuring, and this book gets another star.
Rosenbaum and Pearl have got this one right, clear and straight to the point, no messing about.
If you had to pick one book on IB out of the hundreds available on Amazon, pick this one!
I do have some academic Accounting experience (several modules as part of an undergrad in Economics) but feel that previous accounting knowledge is not a pre-requisite to begin modelling; as long as one acknowledges their early attempts will likely have little practical value as the 'art' side of accounting (and part where experience is vital) is really where the skill/ value of an analyst comes in.
Having worked through the book, and since that done some of my own modelling, it has proved to be an excellent introduction to this little known to outsiders skill-set. The chapters are well thought out, with references throughout the book and the authors' reasoning is nearly always clearly communicated.
That being said, my first model (a DCF) was still very tough. It required trawling through book, constantly scribbling questions down, using the Excel spreadsheet ("Add comment" quickly became my favourite function within Excel for both my reasoning of the value, the source [as the book says to do] but also for my myriad of questions of how to find the fig., work it out etc. etc.) Even with this handbook it took many hours. However, after a few weeks I finished up with a sensible Equity Valuation of my co.
I should add that I am lucky to have a couple of friends who are analysts, and were a great help on those questions that really stumped me.Read more ›
However, Wiley representative told me that for this particular ISBN, there is no access to online resources, which should otherwise be bought separately. So, go for university edition and do NOT buy this edition. They are of same value but at different prices.
I needed this to help with a potential transfer from the sales and trading side of IB to M&A/Lev Fin and hopefully to PE. The feedback I have received so far from practitioners is good and my preparation has centered mainly on this book. I therefore see it as a good buy for someone with no experience in the specific area; however, I can also see myself continuing to use it as a helpful reference point if I make the move and progress in the industry.
Most Recent Customer Reviews
Excellent for beginners, with good insights on the applications and limitation of the most common valuation techniques.Published 11 months ago by Carlos Vitoria
Explains concepts in a very simple language - valuation methods, LBO, buy and sell side M&A. Step by step walk through financial models - every step explained, nothing missed. Read morePublished on 7 Nov. 2013 by G. Nageswaran
Got this for my venture capital coursework. It is very useful to beginner to do valuation. A textbook for you if you want to be in bankingPublished on 26 April 2013 by Daisy
Have researched a lot about valuation, investment and M&A, for me, this is one of the best books I have read that gives clear explanation, practical guides and concrete examples of... Read morePublished on 3 Jan. 2012 by AnnieTran
Top-notch step-by-step explanation of building valuation models. In great detail, the authors go through four valuation approaches: (i) comparisons with other companies (ii) using... Read morePublished on 8 May 2011 by demola