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Investment Banking 101: Understanding the Industry

Tom Spencer

Investment bankers work on behalf of both individual and institutional clients to raise capital by issuing securities, as well as to advise clients on financial matters such as mergers, acquisitions, and other corporate finance activities. How would you value a company with negative historical cash flow?

Banking 88
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Breaking Down Case Interview Frameworks – M&A (Mergers and Acquisitions)

Management Consulted

Check out our breakdowns on Profitability , Market Sizing , and Market Study to become a complete expert on any kind of framework you’ll need in your case interview. These cases can be some of the scariest, because they test things like finance principles, but on the other hand, they’re really easy to recognize.

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business

If you’re not a numbers person, finance is daunting. “The decision-makers will want to see a simple model that shows revenue, costs, overhead, and cash flow,” he says. Stop avoiding finance because you’re afraid of numbers. Think of it this way, “Finance is the way businesses keep score.

Finance 28
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Strong Economy – Strong Buy-Sell Market

Martinka Consulting

Record number of small business sales in 2018! The driving force is the baby boomer generation is large and highly entrepreneurial (as per an Intuit study saying this generation owns a disproportionate share of businesses. Sixty percent of them delayed their exit by at least two years, as per a study by Sun Trust Bank.

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Which MBAs Make More: Consultants or Small-Business Owners?

Harvard Business

That means that the CEO keeps 20% of any cash distribution after the investors’ investment is returned and they are paid a preferred dividend.) The value of that carried interest, of course, depends on the performance of the business, its size, amount of debt used to finance the acquisition and the eventual pricing of a subsequent sale.

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What GE’s Board Could Have Done Differently

Harvard Business

Since Immelt’s departure, GE’s stock is down another 30%, as its new CEO, John Flannery, has struggled to cope with the cash flow drain from years of problematic acquisitions, divestitures, and buybacks. The Board Had No Finance Committee. in 2013 to 3.7 in early 2018, according to Moody’s.

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Subscription Businesses Are Booming. Here’s How to Value Them

Harvard Business

Indeed, some analysts have gone a step further, declaring that subscription boxes are in the midst of a venture capital-fueled bubble not unlike the flash-sale business craze that ended five years ago. Case Study: Blue Apron. that aggregate sales in the U.S. grocery market were almost $800 billion, only 1.2%