Wiley Finance: Investment Banking : Valuation, Leveraged Buyouts, and Mergers and Acquisitions 881 by Joshua Rosenbaum and Joshua Pearl

Wiley Finance: Investment Banking : Valuation, Leveraged Buyouts, and Mergers and Acquisitions 881 by Joshua Rosenbaum and Joshua Pearl

This book fills a noticeable gap in contemporary finance literature, which tends to focus on theory rather than practical application. It focuses on the primary valuation methodologies currently used on Wall Street—comparable companies, precedent transactions, DCF, and LBO analysis—as well as M&A analysis. The ability to perform these methodologies is especially critical for those students aspiring to gain full-time positions at investment banks, private equity firms, or hedge funds. This is the book Rosenbaum and Pearl wish had existed when we were trying to break into Wall Street.

Investment Banking, Second Edition will make sure you are prepared. This is how I got started learning about investment banking, and this is what ultimately led to my offer. I thought it was very helpful, but you need to actually do the valuation to get it.

From this perspective, that the book was written by industry practitioners is a distinct advantage. Furthermore, an accompanying website offers downloadable Microsoft Excel spreadsheet templates that are likely to be helpful to anyone interested in acquiring certain skills used by investment bankers. This is a fantastic book to teach a novice what investment bankers do.

Potential readers should be aware that Rosenbaum and Pearl limit their scope to the basic steps of structuring straightforward investment banking transactions. For example, in making cash flow projections, they prescribe the common practice of extrapolating historical numbers into the future.

Readers looking for more theory or higher level math may be disappointed. If you're serious about the topic, I suggest following this book with something more academic (my friend also leant me a followup textbook that I plan to read). What you need to know to get a job on Wall Street is not taught in the classroom.

Investment Banking, is a highly accessible and authoritative book written by investment bankers that explains how to perform the valuation work at the core of the financial world. For those who purchase this edition of the book, there are options to purchase the Valuation Models separately , and to also consider purchase of the Investing Banking Workbook and Investment Banking Focus Notes for further self-study. These points do not necessarily represent weaknesses in Investment Banking; they simply help define the book’s purpose and indicate how useful it might be. As a teaching manual for beginning investment bankers, Investment Banking has great merit. The chapters on LBOs and the M&A sale process constitute an outstanding primer, in both clarity and comprehensiveness.

He received his BA from Harvard University and his MBA, with Baker Scholar honors, from the Harvard Business School. For instance, Rosenbaum and Pearl define the difference between goods and services, which is unnecessary for many potential readers.

Just reading the book won't give you much practical info so download the models and build them a few times. Joshua D. Pearl (New York, NY) is currently at UBS Investment Bank's Global Industrials Group. He was previously an Associate in Deutsche Bank's Leveraged Finance Group, where he was also previously an Analyst. He received his BS in Business Administration from Indiana University's Kelley School of Business. Joshua N. Rosenbaum (New York, NY) is an Executive Director in UBS Investment Bank's Global Industrials Group.

• The template that is provided and the walk through of how to build the models is exactly what our templates looked like at Barclays so can speak highly on the credibility of the analysis / templates that are shown in the book.
• This book fills a noticeable gap in contemporary finance literature, which tends to focus on theory rather than practical application.
• For example, in making cash flow projections, they prescribe the common practice of extrapolating historical numbers into the future.
• The ability to perform these methodologies is especially critical for those students aspiring to gain full-time positions at investment banks, private equity firms, or hedge funds.
• For those who purchase this edition of the book, there are options to purchase the Valuation Models separately , and to also consider purchase of the Investing Banking Workbook and Investment Banking Focus Notes for further self-study.

Reviews

Definitely is a book I want to go back to and refer to from time to time as it is the handbook to valuation methodologies in investment banking and again contains information that bankers should know 110% of. Make no mistake, this should be a complete review for any current bankers so don't expect to be revitalize by the information in here. A perfect guide for those seeking to learn the fundamentals of valuation, M&A , and corporate finance used in investment banking and professional investing, this UNIVERSITY EDITION—which includes an instructor’s companion site—is an essential asset. It provides students with an invaluable education as well as a much-needed edge for gaining entry to the ultra-competitive world of professional finance.

Written by industry practitioners rather than professors of finance, Investment Banking is better characterized as a technical how-to instruction manual than as an academic textbook. Coauthors Joshua Rosenbaum and Joshua Pearl are associated with UBS and Deutsche Bank, respectively.

This involves the use of more realistic assumptions governing approach to risk as well as a wide range of value drivers. While valuation has always involved a great deal of "art" in addition to time-tested "science," the artistry is perpetually evolving in accordance with market developments and conditions. In this sense, this book is particularly topical--in addition to detailing the technical fundamentals behind valuation, the authors infuse practical judgment skills and perspective to help guide the science. Let us know what’s wrong with this preview of Investment Banking by Joshua Rosenbaum.

Most relevant reviews

Investment Banking 2nd Ed Joshua Rosenbaum Joshua Pearl University Edition New. Investment Banking, Second Edition was written to serve as the book the authors wish had existed when they were interviewing and starting out on Wall Street—it is the ultimate Wall Street internship/job seekers guide. When I was a freshman with 0 finance experience I bought the first edition, read it cover to cover a few times, downloaded the models, built them out for a public company that just announced an acquisition, and checked to see if my valuation was close to the value of the acquisition (it was close enough).

The authors also demonstrate how to calculate an internal rate of return, a staple of introductory finance courses. This is a good, solid nuts and bolts text book about evaluating, pricing, and understanding various types of leveraged buyouts and other M&A transactions. If this is something you need to know, this is a decent book to help you learn it.

I recommend this for anyone who is emerging from business school and planning a career in investment banking. It will give you a head start on your career, since business school gives you tools (time value of money problems) but not the application of those tools.

Similarly, when the authors show how to calculate an enterprise-value-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) multiple, they focus on multiples for comparable companies or for precedent transactions. A lengthier discussion would be required to provide perspective on the risk that in an ebullient market, the multiples paid in recent deals may be excessive. I asked a professor friend for a book recommendation and she loaned me her copy of Investment Banking. This book gives an overview of the process from a practitioner's perspective.