Welcome to Investment Banking University, where our mission is to provide a thorough and comprehensive education that equips students with the essential knowledge and skills to excel in the dynamic and demanding field of investment banking. This course is designed as a vital resource for both aspiring and seasoned professionals seeking to deepen their understanding of the industry and enhance their career prospects.

PART I: THE CAPITAL MANAGEMENT GAME

In the initial lessons, we delve into the fundamentals of the capital management game, exploring the dynamics of capital management and the pursuit of arbitrage opportunities for real returns. Students will learn essential skills needed for effective capital management, including portfolio analysis and risk assessment, while gaining insights into the functioning of Wall Street and the importance of earnings per share (EPS) guidance in shaping investor expectations and market performance.

PART II: WHAT IS INVESTMENT BANKING & WHERE DOES IT FIT INTO THE CAPITAL MANAGEMENT GAME?

We then transition to a detailed examination of investment banking, covering the fundamental concepts and functions, the critical roles and responsibilities of investment bankers, and the intermediary role of investment banks in connecting capital providers with capital seekers. This section also includes an overview of the types of issuers that utilize investment banking services and the processes involved in identifying and originating investment banking opportunities from corporate clients.

PART III: DEVELOPING A BUY-SIDE PERSPECTIVE

This part of the curriculum focuses on developing a buy-side perspective, including how investment bankers engage in capital management from a buy-side viewpoint. Students will explore the mechanics of private equity, the expected internal rates of return (IRRs) in private equity and corporate M&A, and the characteristics of an ideal leveraged buyout (LBO) candidate.

PART IV: FRONT OFFICE INVESTMENT BANKING PROCESS

Students will gain an introduction to the front office investment banking process, including deal origination and execution, detailed examination of front office activities, and practical insights into mergers and acquisitions (M&A). This section provides a comprehensive understanding of how M&A is marketed and sold as a product by investment banks and practical insights into the day-to-day activities of investment bankers.

PART V: COVERAGE & PICKING THE UNIVERSE OF STRATEGIC ALTERNATIVES

In this section, we cover the importance of coverage areas in investment banking, the process of selecting coverage areas based on market opportunities and client needs, and the dynamics of the lower middle market and middle market. Students will learn how to create effective coverage reports and marketing materials and understand key financial data sources and various filings used in investment banking.

PART VI: MANDATE/TARGET MATCHING & GENERATING STRATEGIC ALTERNATIVES

This part explores the process of matching mandates with target opportunities, identifying strategic and financial buyers, and understanding the strategic capital management process. Students will learn how investment bankers play a crucial role in the strategic management process and in generating the lowest cost of capital alternatives for corporate issuers and high-return alternatives for investors.

PART VII: ORIGINATION & PITCHING STRATEGIC ALTERNATIVES

We delve into the techniques and strategies for originating and generating strategic alternatives, identifying and engaging key decision-makers, and effectively pitching strategic alternatives to clients. This section also covers the strategic management roles and responsibilities of investment bankers and aligning strategic alternatives with executive-level priorities.

PART VIII: FEE STRUCTURING & WINNING THE MANDATE FOR IMPLEMENTING A STRATEGIC ALTERNATIVE

Students will learn about fee structuring and how to win mandates for implementing strategic alternatives, understanding the fee structures involved in M&A transactions, and the importance of the engagement letter in investment banking.

PART IX: UNDERWRITING THE STRATEGIC ALTERNATIVE

This section introduces financial modeling and valuation frameworks used in investment banking, the process of underwriting strategic alternatives, and the integration of data science and finance. Students will understand the structure and components of financial models and the importance of financial modeling and valuation in deal structuring.

PART X: PACKAGING & SECURITIZING THE STRATEGIC ALTERNATIVE

Students will learn about the securitization process in investment banking, how to package strategic alternatives for presentation, and the key transaction-specific documents used in investment banking, including the creation of pitch books and teaser documents.

PART XI: BUYER LIST

This part covers the process of creating and maintaining a buyer list, developing detailed buyer profiles, utilizing a buyer database for transactions, and effective strategies for reaching out to potential buyers.

PART XII: DEAL STRUCTURING

Students will gain an overview of the deal structuring process in investment banking, including determining valuation ranges and deal terms, strategies for dealing with sellers and buyers in different market segments, and understanding various financial instruments used in investment banking.

PART XIII: M&A PROCESS

We provide a detailed guide to the M&A process, including the strategic rationale behind M&A transactions, navigating the M&A deal lifecycle, and understanding the steps involved from initiation to completion.

APPLICATIONS

This section offers practical tips and strategies for breaking into investment banking, securing buy-side relationships, and landing M&A engagements. It includes case studies on capital raises, M&A transactions, IPOs, restructurings, leveraged buyouts, and mergers. Additionally, students will find recommendations for the best books on financial modeling and valuation and insights into practicing investment banking and equity research.

Appendix

The appendix provides an introduction to data science principles and their application in investment banking.