Introduction xi Overview of the Book xii Who is the Book For? xiii Structure of the Book xiii Acknowledgments xix Chapter 1 Introduction to Investment Banking 1 Overview of an Investment Bank 2 Overview of Investment Banking 7 The Life of an Investment Banker 22 Frequently Asked Questions 47 Chapter 2 Accounting Overview 55 Introduction to Accounting 56 The Income Statement 58 The Balance Sheet 69 The Statement of Cash Flows 83 Integrating the Three Financial Statements 88 End-of-Chapter Questions 99 Chapter 3 Finance Overview 101 The Financial System 102 Principles of Finance 107 Introduction to Corporate Finance 114 Valuing Securities 130 End-of-Chapter Questions 145 Chapter 4 Financial Statement Analysis 147 Sources of Financial Information 148 Financial Statement Analysis 158 Analyzing Different Time Periods 169 "Normalizing" the Financials 174 End-of-Chapter Questions 177 Chapter 5 Valuation 179 Introduction to Valuation 180 Comparable Company Methodology 194 Precedent Transaction Methodology 210 Discounted Cash Flow (DCF) Analysis 219 Valuation Conclusions 238 End-of-Chapter Questions 245 Chapter 6 Financial Modeling 247 Overview of an Integrated Cash Flow Model 248 Building an Integrated Cash Flow Model 262 End-of-Chapter Questions 292 Chapter 7 Mergers and Acquisitions 293 M&A Overview 293 The M&A Process 302 M&A Analysis 310 End-of-Chapter Questions 322 Chapter 8 Leveraged Buyouts 323 Overview of LBOs 324 LBO Modeling 331 LBO Conclusions: Do We Do the Deal? 347 End-of-Chapter Questions 348 Chapter 9 Recruiting, Interviewing, and Landing the Job 349 What are Investment Banks Looking For? 350 The Recruiting Process 354 Resumes and Cover Letters 360 Networking and Informational Interviews 368 Interviewing 375 Receiving an Offer and Being a Banker 398 Conclusions 403 Further Reading 405 About the Author 407 About the Website 409 Index 411
ANDREW GUTMANN is the creator of www.ibankingfaq.com, one of the most widely visited websites focused on the topic of investment banking. He has developed and taught finance and investment banking classes for a number of institutions, including the Institute for Finance, the firm that he founded. For the past five years, he has also been a career coach at Columbia Business School, where he advises and mentors MBA students interested in investment banking careers. Andrew is a former investment banker who has executed M&A and restructuring transactions for clients across a number of sectors. Andrew lives with his wife and daughter in New York City.