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Product Groups vs. Industry Coverage Groups
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Investment Banking Pitchbook
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Synergies in M&A (Revenue vs. Cost)
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Accretion/Dilution Analysis
Accretion/Dilution AnalysisM&A Model: Accretion/Dilution Analysis An important part of investment banking is understanding mergers and acquisitions (M&A). Within M&A, One of the core models investment banking analys...
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Asset Sale vs. Stock Sale
Asset Sale vs. Stock SaleWhat is Stock Sale vs. Asset Sale? When one company acquires another company, what does the seller actually give the buyer? The answer depends on whether the deal is structured legally as a stock sale...
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Backward Integration
Backward IntegrationWhat is Backward Integration? Backward Integration is a strategy where a company gains more control over the functions in the earlier stages of the value chain, i.e. moving “upstream”. The...
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BoA Staffing Structure Changes
BoA Staffing Structure ChangesBoA Staffing Structure Changes Bank of America this morning announced that it will fire 2,000 investment bankers on top of the 30,000 announced last year in an attempt to regain profitability. This lo...
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Boutique Investment Banks
Boutique Investment Banks*Updated for 2023: List of Boutique and Middle-Market Investment Banks* Boutique, Industry-Focused and Middle Market U.S. Investment Banks Miller Buckfire & Co. (Restructuring focused) Morgan Keeg...
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Breakup Fees and Reverse Termination Fees in M&A
Breakup Fees and Reverse Termination Fees in M&ABreakup fees A breakup fee refers to a payment a seller owes a buyer should a deal fall through due to reasons explicitly specified in the merger agreement. For example, when Microsoft acquired Linked...
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Bulge Bracket Investment Banks
Bulge Bracket Investment BanksBulge bracket investment banks Wall Street Prep put together this list of the top global bulge bracket investment banks. Learn more about these prestigious banks below. Bank of America Merrill Lynch B...
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Buy Side vs. Sell Side
Buy Side vs. Sell SideWhat is Buy-Side vs. Sell-Side? You'll often hear finance professionals describe their role as being either on the “sell side” or on the “buy side.” As is the case with a lot of finance jargon, what t...
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Cash vs. Stock Acquisition
Cash vs. Stock Acquisition[caption id="attachment_21584" align="alignright" width="392"] Source: Thomson Reuters[/caption] Cash vs. Stock Consideration in M&A In acquisitions, buyers usually pay the seller with cold, hard...
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Confidential Information Memorandum (CIM)
Confidential Information Memorandum (CIM)What is a CIM? A Confidential Information Memorandum (CIM) is an M&A document prepared by a company in an effort to solicit indications of interest from potential buyers.
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Conglomerate Merger
Conglomerate MergerWhat is Conglomerate Merger? A Conglomerate Merger is the combination of two or more companies that each operate in distinct, seemingly unrelated industries. A conglomerate merger strategy combines se...
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Control Premium
Control PremiumWhat is Control Premium? The Control Premium is the differential between the offer price per share and the unaffected market share price of the acquisition target, prior to speculative rumors of a pot...
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Day in the Life of an Investment Banking Analyst
Day in the Life of an Investment Banking AnalystWhat is a Day in the Life of an Investment Banking Analyst? A day in the life of an investment banking analyst is rather unpredictable as part of working in investment banking is becoming accustomed t...
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Direct Listing
Direct ListingWhat is Direct Listing? Direct Listing is the process by which a company goes public by getting listed on an exchange and offering existing shares directly to the open market.
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Divestiture
DivestitureWhat is a Divestiture? A Divestiture occurs when a corporation proceeds with either a partial or an outright sale of a business segment and the assets belonging to the unit.
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Earnouts in M&A
Earnouts in M&A[caption id="attachment_22061" align="alignright" width="320"] This will all be yours. Maybe.[/caption] What is an Earnout? An earnout, formally called a contingent consideration, is a mechanism used...
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Exchange Ratios in M&A
Exchange Ratios in M&AFor a deal structured as a stock sale (as opposed to when the acquirer pays with cash — read about the difference here), the exchange ratio represents the number of acquirer shares that will be issued...
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Fairness Opinion
Fairness OpinionWhat is Fairness Opinion? In the M&A context, a fairness opinion is a document provided by the seller’s investment banker to the seller’s board of directors attesting to the fairness of a transact...
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Financial Modeling Certification
Financial Modeling CertificationWhat is the Best Financial Modeling Certification? The Financial Modeling Certification designed by Wall Street Prep is the most widely recognized, “industry-standard” certificate available in the mar...
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Financing Fees
Financing FeesWhat are Financing Fees? When a company borrows money, either through a term loan or a bond, it usually incurs third-party financing fees (called debt issuance costs). These are fees paid by the borro...
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Football Field Valuation
Football Field ValuationWhat is the Football Field Valuation? The Football Field Valuation Chart is one of the most common slides in an investment banking pitch book. In short, the football field is a floating bar chart in E...
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Form S-1 Filing
Form S-1 FilingWhat is Form S-1 Filing? The Form S-1 Filing is a mandatory registration form that companies must submit to the Securities and Exchange Commission (SEC) prior to being listed on a public exchange (e.g...
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Forward Integration
Forward IntegrationWhat is Forward Integration? Forward Integration is a strategy wherein a company obtains more control over activities that occur in the later stages of the value chain, i.e. “moving downstream...
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Front Office vs. Back Office
Front Office vs. Back OfficeFront Office vs. Back Office: Investment Bank Roles The roles in an investment bank can be separated into three distinct parts: the front office, the middle office, and the back office. Each sector is...
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Goldman Seeks to Improve Working Conditions for Junior Staffers
Goldman Seeks to Improve Working Conditions for Junior StaffersGoldman Seeks to Improve Working Conditions for Junior Staffers By Shayndi Raice, Deputy Bureau @ The Wall Street Journal Goldman Sachs said it has spent the past year working to improve the work-life...
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History of Investment Banking
History of Investment Banking[caption id="attachment_19955" align="alignright" width="267"] J.P. Morgan[/caption] History of Investment Banking Undoubtedly, investment banking as an industry in the United States has come a long w...
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Horizontal Integration
Horizontal IntegrationWhat is Horizontal Integration? Horizontal Integration occurs from mergers among companies directly competing in the same or closely adjacent markets. The companies involved in a horizontal merger are...
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Hostile Takeover
Hostile TakeoverWhat is Hostile Takeover? A Hostile Takeover refers to a bid to acquire a target company, in which the board of directors of the target is not receptive to the offer and may even attempt to prevent th...
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Hours in Investment Banking
Hours in Investment Banking[caption id="attachment_6257" align="alignright" width="300"] It's time analysts brought their grievances to their MDs. That could only end well.[/caption] After clocking in consecutive 90 hour work w...
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Initial Public Offering (IPO)
Initial Public Offering (IPO)What is an IPO? An Initial Public Offering (IPO) is the process wherein a privately held company issues equity in the form of stock to the public markets for the first time.
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Investment Banking Analyst Salary Guide
Investment Banking Analyst Salary GuideWhat is the Salary in Investment Banking? Investment banking analysts are typically hired straight out of college into a two-year program that sometimes extends to a third year. In the following compe...
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Investment Banking Associate Salary Guide
Investment Banking Associate Salary GuideWhat is the Investment Banking Associate Salary? Investment banking associates tend to be hired after business school, after they have completed summer associate MBA internships. Alternatively, some a...
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Investment Banking Career Path
Investment Banking Career PathInvestment Banker Positions: Junior to Senior Progression The career of an investment banker progresses along a fairly standard path. Investment banking positions from junior to senior: Analyst (grunt...
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Investment Banking Director Salary
Investment Banking Director SalaryThe investment banking director salary ranges between $500,000 and $700,000 at most bulge bracket investment banks and elite boutiques. The all-in comp is comprised of a base and bonus component: Base...
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Investment Banking FAQ
Investment Banking FAQInvestment Banking FAQ: Guide for Beginners Q. What is an investment bank? An investment bank is a financial institution that assists wealthy individuals, corporations, and governments in raising capi...
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Investment Banking Functions
Investment Banking FunctionsWhat are the Functions of Investment Banking? In the following post, we’ll briefly break down the various divisions of an investment bank and the services performed, including the changes that h...
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Investment Banking in Canada
Investment Banking in CanadaInvestment Banking in Canada Canada has a robust investment banking industry that supports the domestic market and serves as a global hub for mining and resource companies. Investment banking in Canad...
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Investment Banking in Hong Kong
Investment Banking in Hong KongGlobal & Domestic Investment Banks in Hong Kong The landscape for investment banking in Hong Kong is bifurcated into global banks and domestic banks. For investment banking business involving majo...
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Investment Banking Industry
Investment Banking IndustryWhat is the Investment Banking Industry? An investment bank is a financial intermediary that performs a variety of services, primarily: Raising Capital and Security Underwriting Mergers & Acquisit...
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Investment Banking Internship Guide
Investment Banking Internship GuideHow to Prepare for Investment Banking Internships? The following Investment Banking Internship Guide explains summer analyst and MBA associate internships at elite boutique (EB) and bulge bracket bank...
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Investment Banking Managing Director Salary (MD)
Investment Banking Managing Director Salary (MD)Investment Banking Managing Director Salary Managing directors (MDs) are at the top of the investment banking organizational hierarchy. MDs are responsible for relationship-building with clients and r...
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Investment Banking Pitchbook
Investment Banking PitchbookWhat is a Pitchbook? The Pitchbook in investment banking is a marketing document presented by firms to existing and potential clients to sell their advisory services.
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Investment Banking Post-2008 Financial Crisis
Investment Banking Post-2008 Financial CrisisFinancial Crisis (Post-2008): Investment Banking Recession The greatest global financial crisis since the Great Depression was triggered in 2008 by multiple factors including the collapse of the subpr...
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Investment Banking Primer
Investment Banking PrimerWhat is Investment Banking? Investment Banking is a segment of the financial services industry that offers strategic advisory services to corporate and institutional clients on mergers and acquisition...
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Investment Banking Resume Template
Investment Banking Resume TemplateInvestment Banking Resume Template Writing an effective, succinct investment banking resume is the first step for students looking to break into the industry. Since investment banking recruiters are i...
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Investment Banking Vice President Salary (VP)
Investment Banking Vice President Salary (VP)Investment banking vice presidents (VPs) are the next step after associate and before director in the investment banking career path. At the VP level, the base compensation is typically between $250,0...
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Investment Banking vs. Equity Research
Investment Banking vs. Equity ResearchInvestment Banking vs. Equity Research: What is the Difference? Considering a career in investment banking or equity research? In the following insider’s guide, we’ll compare the differenc...
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Investment Banking vs. Private Equity
Investment Banking vs. Private EquityInvestment Banking vs. Private Equity: What is the Difference? The private equity (PE) industry tends to be a common exit path for investment banking analysts and management consultants. As a result,...
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Investment Banks List
Investment Banks ListInvestment Banks List: Global and Boutique Firm Contacts Here we provide a downloadable list of investment banks, broken out by type (global, boutique, US focused, etc...), with links to each firm's c...
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Letter of Intent (LOI)
Letter of Intent (LOI)LOI Definition: Letter of Intent in M&A An LOI is a letter from the buyer that states the broad terms of what a definitive agreement might look like, including the purchase price and form of consi...
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List of Boutique and Middle-Market Investment Banks
List of Boutique and Middle-Market Investment BanksComplete List of Boutique and Middle-Market Investment Banks In the following post, we have compiled a comprehensive list of over 600+ boutique and middle-market investment banks based in the U.S.
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M&A Advisory Services
M&A Advisory ServicesWhat is M&A Advisory? M&A Advisory services are provided by investment banks hired to guide corporations through the complex world of mergers and acquisitions.
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M&A Due Diligence
M&A Due Diligence[caption id="attachment_21726" align="alignright" width="450"] People in the know call due diligence "due dili," As in, "I'm only 180 hours of due dili away from some sleep."[/caption] Due Diligence i...
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M&A Filings
M&A FilingsWhat are M&A Filings? When analyzing M&A transactions, finding the relevant documents is often the hardest part of the job. In an acquisition of a public target, the type of publicly available...
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M&A Interview Questions
M&A Interview QuestionsM&A Interview Questions Guide This M&A Interview Questions post summarizes the most common questions asked in investment banking interviews to help those preparing to recruit for internships o...
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Material Adverse Change (MACs)
Material Adverse Change (MACs)What is a Material Adverse Change (MAC)? A Material Adverse Change (MAC) is one of several legal mechanisms used to reduce risk and uncertainty for buyers and sellers during the period between the dat...
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Merger Arbitrage
Merger ArbitrageWhat is Merger Arbitrage? Merger Arbitrage is an investment strategy that seeks to profit from the uncertainty that exists during the period between when an acquisition is announced and when it is for...
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Merger Model
Merger ModelWhat is a Merger Model? A Merger Model measures the estimated accretion or dilution to an acquirer’s earnings per share (EPS) from the impact of an M&A transaction.
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Mergers and Acquisitions Guide (M&A)
Mergers and Acquisitions Guide (M&A)What is M&A? Mergers and Acquisitions (M&A) is an umbrella term that refers to the combination of two businesses. M&A provides buyers looking to achieve strategic goals via inorganic growt...
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Microsoft-LinkedIn Merger
Microsoft-LinkedIn MergerM&A Case Study: Microsoft-LinkedIn Acquisition Timeline M&A transactions can get complicated, with no shortage of legal, tax and accounting issues to sort out. Models are built, due diligence ...
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Net Identifiable Assets
Net Identifiable AssetsWhat are Net Identifiable Assets? Net Identifiable Assets, in the context of M&A, refer to the fair value of an acquisition target’s assets once the corresponding liabilities have been deducted.
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No-Shop and Go-Shop Provision in M&A
No-Shop and Go-Shop Provision in M&A[caption id="attachment_22056" align="alignright" width="450"] No-shops prevent sellers from shopping the deal to higher bidders[/caption] The no-shop provision When Microsoft acquired Linkedin on Jun...
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Offer Price
Offer PriceWhat is Offer Price in M&A? The Offer Price in mergers and acquisitions (M&A) refers to the monetary value that an acquirer proposes to pay in order to obtain control of a target company. The...
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Poison Pill Defense
Poison Pill DefenseWhat is the Poison Pill Defense? The Poison Pill Defense is a type of strategy utilized by companies attempting to thwart a hostile takeover. With a poison pill strategy, existing shareholders — and n...
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Premiums Paid Analysis in M&A
Premiums Paid Analysis in M&A[caption id="attachment_21591" align="alignright" width="281"] Source: Bloomberg[/caption] What is Premiums Paid Analysis? A "purchase premium" in the context of mergers and acquisitions refers to the...
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Private Placement
Private PlacementWhat is a Private Placement? A Private Placement is a transaction involving the sale of equity and debt securities directly to accredited, institutional investors. The securities offered in private pl...
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Product Groups vs. Industry Groups
Product Groups vs. Industry GroupsWhat are Product Groups vs. Industry Groups? Product Groups and Industry Groups are the two distinct segments by which the investment banking division (IBD) is organized. From the perspective of an in...
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Prospectus
ProspectusWhat is a Prospectus? A Prospectus is a formal document filed with the Securities and Exchange Commission (SEC) by companies intending to raise capital by offering securities to the public.
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Public Information Book (PIB)
Public Information Book (PIB)What is the Public Information Book? The Public Information Book (PIB) is a document containing a compilation of publicly available data and market research on a specific company (i.e. existing or pot...
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Purchase Price Allocation (PPA)
Purchase Price Allocation (PPA)What is Purchase Price Allocation? Purchase Price Allocation (PPA) is an acquisition accounting process of assigning a fair value to all of the acquired assets and liabilities assumed by the target co...
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Red Herring Prospectus
Red Herring ProspectusWhat is the Red Herring Prospectus? The Red Herring Prospectus is a preliminary document drafted by companies during the initial stages of undergoing an initial public offering (IPO).
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Regional Investment Banks List
Regional Investment Banks List*Updated for 2023: List of Boutique and Middle-Market Investment Banks* Large US Regional Investment Banks SunTrust (Robinson Humphrey) Wedbush Securities BB&T KeyCorp (KeyBanc Capital Markets) PN...
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Reverse Merger
Reverse MergerWhat is a Reverse Merger? A Reverse Merger occurs when a privately-held company acquires a majority stake in a publicly-traded company. A reverse merger – or “reverse takeover” – is most often underta...
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Secondary Offering
Secondary OfferingWhat is a Secondary Offering? A Secondary Offering describes the sale of post-IPO shares on the secondary market among investors. However, the term can also refer to the issuance of additional shares...
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Securities Underwriting
Securities UnderwritingWhat is Underwriting? Underwriting is the process in which an investment bank, on behalf of a client, raises capital from institutional investors in the form of debt or equity. The client in need of c...
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Sell Side Process
Sell Side ProcessWhat is Sell Side M&A? The Sell Side Process in M&A describes the deal process from the seller’s (and its financial advisors’) perspective.
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Spin-Off
Spin-OffWhat is a Spin-Off? A Spin-Off refers to when a parent company sells a specific business unit or division, i.e. a subsidiary, to effectively create a new standalone company. As part of the spin-off, t...
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Superday
SuperdayWhat is a Superday? A Superday is the final step of the interview process for internships and on-cycle analyst/associate roles in investment banking, right before offer letters are sent out.
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Synergies in M&A
Synergies in M&AWhat are Synergies in M&A? Synergies are the estimated cost savings or incremental revenue arising from a mergers and acquisitions (M&A). The estimation of the pro forma revenue or cost synerg...
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Tender Offer vs. Merger
Tender Offer vs. MergerA statutory merger (aka “traditional” or “one step" merger) A traditional merger is the most common type of public acquisition structure. A merger describes an acquisition in which two companies joint...
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Top 30 Masters in Finance
Top 30 Masters in FinanceTop 30 Masters in Finance Below is a link to efinancialcareer's ranking of the top Masters in Finance programs for getting a job in investment banking. [caption id="attachment_20876" align="alignright...
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Top M&A Deals Gone Bad
Top M&A Deals Gone BadTop M&A Deals Gone Bad: List of Examples Firmex, a virtual data room provider, sent over a nice infographic which lists the top 10 due diligence disasters. We talk about some of these specific dea...
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Vertical Integration
Vertical IntegrationWhat is Vertical Integration? Vertical Integration involves the merger of two or more companies that serve different functions in the supply chain. In such a case, the entire (or most) of the supply c...
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Wall Street Prep Joins the IBP Institute
Wall Street Prep Joins the IBP InstituteWall Street Prep Joins the IBP Institute We are excited to announce our participation in the IBP Institute. The IBP Institute is dedicated to building a recognized industry credential similar to the C...
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Wall Street Prep vs. BIWS (M&I)
Wall Street Prep vs. BIWS (M&I)Wall Street Prep vs. BIWS (M&I): Course Comparison Many students and professionals considering a career in investment banking, equity research, or private equity think about enrolling in a financi...
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Why Investment Banking?
Why Investment Banking?How to Answer the “Why Investment Banking?” Interview Question “Why Investment Banking?” is a routine, behavioral interview question candidates encounter in the competitive recruitin...
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Will Wall Street Prep Help Me Get Into Investment Banking?
Will Wall Street Prep Help Me Get Into Investment Banking?[caption id="attachment_6276" align="alignright" width="300"] Wall Street Prep's Self Study Videos Facilitate Learning[/caption] Q: What is the validity and authenticity of Wall Street Prep's Self Stu...