Biws - Study guides, Class notes & Summaries

What are the 3 major valuation methodologies? - Answer-Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Rank the 3 valuation methodologies from highest to lowest expected value. - Answer-Trick question - there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions. Beyond that, a DCF could go either way and it's best to say that it's more variable than ot...

M&A Deals and Merger Models - BIWS Exam 2024/2025 Questions With Completed & Verified Solutions.

You've never worked in finance before. How much do you know about what bankers actually do? - ️️I've done a lot of research on my own. Based on that, I know that bankers advise companies on transactions - buying and selling other companies, and raising capital. They are "agents" that connect a company with the appropriate buyer, seller, or investor. The day-to-day work involves creating presentations, financial analysis and marketing materials such as Executive Summaries. Let's say...

BIWS 400 Questions - Valuation Questions & Answers - Basic Questions And Answers What are the 3 major valuation methodologies? - ANS Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Rank the 3 valuation methodologies from highest to lowest expected value. - ANS Trick question - there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions. Beyond th...

What is a leveraged buyout, and why does it work? PE firm acquires a company using a combination of Debt and Equity, operates it for several years, and then sells the company at the end of the period to realize a return on its investment. During the period of ownership, the PE firm uses the company's cash flows to pay for the interest expense on the Debt and to repay Debt principal. It works because leverage amplifies returns: If the deal performs well, the PE firm will realize higher returns...

How do you value banks and financial institutions differently from other companies? - Answer-You mostly use the same methodologies, except: • You look at P / E and P / BV (Book Value) multiples rather than EV / Revenue, EV / EBITDA, and other "normal" multiples, since banks have unique capital structures. • You pay more attention to bank-specific metrics like NAV (Net Asset Value) and you might screen companies and precedent transactions based on those instead. • Rather than a DCF,...

BIWS Merger Models (Mechanics) Exam 2024/2025 Questions With Completed & Verified Solutions.

2. Wait a minute, how are Call Protection and "Prepayment" different? Don't they refer to the same concept? Call Protection refers to paying off the entire debt balance, whereas "Prepayment" refers to repaying part of the principal early, before the official maturity date. 3. What are some examples of incurrence covenants? Maintenance covenants? Incurrence Covenants: x Company cannot take on more than $2 billion of total debt. x Proceeds from any asset sales must be earmarked to repay debt...

BIWS LBO AND LBO MODEL GUIDE EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED GRADED A++ Why do we acquire other companies company acquiring believes it will be better of afterward -sellers "asking price:-> lss than the PV of its FCF-> or buyer might expect to realise an IRR on the deal exceeding WACC -less than PV of Future FCF or ROIC>WACC WHy do PE firms acquire companies? difference between PE firm acquisiton and another firm acquistion PE never plans to h...