Wrap your head around the complicated world of investment banking with this understandable and comprehensive resource
The celebrated authors of Investment Banking For Dummies, 2nd Edition have updated and modernized their best-selling book to bring readers an invaluable and accessible volume about the investment banking industry.
Written in the straightforward and approachable tone the For Dummies series is known for the world over, authors Matthew Krantz and Robert Johnson have created an indispensable resource for students and professionals new to investment banking.
The book covers all the crucial topics required to understand the fundamentals of the industry, including:
* Strategies for different types of risk management: market, credit, operating, reputation, legal, and funding
* The key investment banking operations: venture capital, buyouts, M&A, equity underwriting, debt, and more
* The relationship between leverages buyout funds, hedge funds, and corporate and institutional clients
Investment Banking For Dummies, 2nd Edition offers, for the first time, a brand-new chapter devoted to cryptocurrencies, and new content on "unicorn" IPOs, including Uber, Lyft, and Airbnb.
Autorentext
Matt Krantz is the personal finance and management editor at Investor's Business Daily. Matt's recent books include Online Investing For Dummies and Fundamental Analysis For Dummies.
Robert R. Johnson, PhD, CFA, CAIA, is a Professor of Finance at Creighton University, where he teaches in the Master of Security Analysis and Portfolio Management Program.
Klappentext
- Get started in investment banking
- Ace your investment bank course
- Navigate bull and bear markets
Excel in the world of investment banking
One of the most lucrative fields in business, investment banking frequently perplexes even banking professionals working within its complex laws. Investment Banking For Dummies remedies common misconceptions with a straightforward assessment of banking fundamentals. This book tracks to typical university courses on the subject and helps students and professionals understand the fundamentals of investment banking. With new and updated content, this edition addresses the major financial changes that have occurred in recent years.
Inside...
- Key investment banking operations
- Strategies for risk management
- Advice on cryptocurrencies
- Updated IPO coverage
- Discounted cash flow analysis
- Mergers and acquisitions
- Structuring a leveraged buyout
- Resources for investment bankers
Inhalt
Introduction 1
About This Book 1
Foolish Assumptions 3
Icons Used in This Book 3
Beyond the Book 4
Where to Go from Here 4
Part 1: Getting Started with Investment Banking 5
Chapter 1: Introducing Investment Banking 7
What Investment Banking is 8
The role investment banking plays 8
How investment banking differs from traditional banking 10
The services investment banks provide 11
How investment banks are organized 12
The current lay of the investment banking land 14
Types of investment banking operations 15
How investment banks get paid 15
How Investment Banking is Done 17
Finding the financial statements 18
Understanding the importance of financial statements and ratios 18
Zeroing in on past transactions 18
Seeing the value of fixed income 19
Turning Into an Investment Banking Pro 19
Putting the discounted cash flow analysis to work 19
Seeing how leverage becomes a force in investment banking 20
Pinpointing buyout targets 20
Putting Investment Banking to Work 21
Staying in compliance with the rules 21
Looking beyond the published financial statements 21
Making adjustments to financial statements for comparability 22
Chapter 2: The Purpose of Investment Banking: What Investment Bankers Do 23
Putting the For-Sale Sign on Corporate America 24
Mergers and acquisitions 25
Leveraged buyouts 27
Private business sales 29
Initial public offerings 32
Helping Investors Decide Whether to Buy or Sell 36
The importance of research 36
What do the analysts do? 37
Digging Into the Role of the Trading Desk 38
Why investment banks are into trading 39
How investment banks turn pennies into billions 40
The type of analysis used in trading operations 40
Chapter 3: How Investment Bankers Sell Companies 43
Getting Companies Ready for Sale on Public Markets 44
Meeting the requirements to make an IPO happen 45
Writing the prospectus 47
Supporting the IPO: Making success last 51
Seeing What Sell-Side Analysts Do 53
The goals of the sell-side analyst 54
What investors look to sell-side analysts for 55
Spreading the word: Disseminating sell-side research 55
Examining a Sample Research Report 57
What to look for in the document 57
The main sections of a research report 58
Ways to look beyond the buy or sell 59
Chapter 4: How Investment Banking is Used in Mergers and Acquisitions 61
Come Here Often? The Basics of Mergers and Acquisitions 62
Kinds of mergers 62
Why companies merge instead of simply growing organically 63
Firms that make attractive acquisition targets 66
How companies identify firms to merge with 67
The nature of the merger: Friendly or hostile? 68
Tools Used to Analyze the M&A Deal 70
The role of the buy-side M&A advisor 70
The role of the sell-side M&A advisor 75
Why Many M&A Deals Go Wrong 76
Misplaced incentives 76
Faulty analysis 77
Overstated synergies 78
Culture wars 78
The winner's curse: Overpaying 78
Chapter 5: How Investment Banking is Used in Leveraged Buyouts 81
In This Corner: Introducing the Players 82
Investment banks 83
Big institutions 84
Management 85
Stock and bond investors 86
Aiming for the Right Targets in a Leveraged Buyout 87
Identifying companies that can work in a leveraged buyout 88
Appreciating the power of cash flow 89
Coming to ...