Private Acquisitions

What are the 3 major valuation methodologies? - Answer-Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Public Comps and Precedent Transactions are examples of relative valuations and DCF is an example of Intrinsic Valuation Rank the 3 valuation methodologies from highest to lowest expected value. - Answer-There is no ranking that will always hold. In general, precedent transactions will be higher than comparable companies due to the control premium built int...

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,...

Why investment banking? - Answer-1. Learning experience -gaining four years of work experience of work experience in two years will prepare me for anything 2. Thrive in environment -rewarded for performance -responsibility at lower level and value through quality of work What do investment bankers do? - Answer-1. Raise capital for companies through debt or equities offerings 2. Provide advice to companies on merger, acquisitions, re-structuring, etc. 3. Evaluate companies and pitch bank...

3 Major Valuation Methods - Answer-Comparable Companies (public Comps) Precedent Transactions (Acquisition Comps) Discounted Cash Flow Analysis Rank the 3 Valuation Methods - Answer-Trick question- no ranking always holds Precedent transactions> comparable companies due to the control premium built into acquisitions DCF could go either way but it's best to say that it's more variable than other methods. Often it produces the highest value but can produce the lowest depending on your a...

Alternative investments - ANSWER-Alternative investments are sometimes viewed as including any investment that is not simply a long position in traditional investments. Fixed-Income Securities - ANSWER-A fixed income security is an investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. Private equity - ANSWER-Private equity is capital that is not listed on a public exchange. Private equity is composed of funds and investor...

CIPT - Body of Knowledge Exam Questions with 100% Correct Answers 2024 IT Risks: Security Policy and Personnel - answerEncryption, Software Protection, Access Controls, Physical Protection, Social Engineering, Auditing. IT Risks: Application - answerPrivileged Access, Software Policy, Privacy Links, Application Research, IT Involvement (IT Controlled, IT Monitored, Employee Controlled). IT Risks: Network - answerMalware, BYOD, Validate Devices/Apps, Network Monitoring, Network Encryption,...

SEC requires... more than 50 forms be filed to comply with reporting requirements When a company issures NEW SECURITIES... it is required to submit a registration statement to the SEC that includes: a. disclosures about the securities being offered for sale b. the relationship of the new securities to the company's other securities c. info similar to that filed in the annual filing d. audited financial statements e. a description of business risk factors Form 10k must be f...

CQIB FINAL EXAM QUESTIONS WITH CORRECT ANSWERS Role of Banks - answer1. Act as financial intermediary between savers and borrowers. 2. Facilitates the creation of money. 3. Creates financial products and services. 4. Develops mechanisms for transferring money and making payments. 5. Contributes to the development of the economy. Debt Capital Markets - answerWhen a large company or government wants to finance a project, it may look to issue bonds to raise capital. An Investment bank woul...

MGMT 498 Chap 9 Study Guide Exam 2024. In what way does the strategic alliance between GM and Lyft allow GM to hedge against uncertainty? - ANSWER It gives GM access to the market of the future, in which traditional private car ownership no longer exists. What are three options used by executives to drive firm growth? (Check all that apply.) - ANSWER acquisitions alliances organic growth Which of the following are the three choices in the build-borrow-or-buy framework? (Check all th...

CPPA Module 3 Exam 182 Questions with Verified Answers Prior to nineties, what two regulations dictated property management industry? - CORRECT ANSWER 1. Federal Acquisition Regulation (FAR) part 45 "Government Property" 2. Federal Property Management Regulations (FPMR), for non-federal employees In NPMA, what is meant by "property"? - CORRECT ANSWER Government property What is the goal of the American National Standards Institute (ANSI)? - CORRECT ANSWER To enhance both the glob...