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Investment Banking:
Valuation, Leveraged Buyouts,and Mergers & Acquisitions

Written by two current Wall Street professionals, Investment
Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions breaks new ground in explaining how the pros perform
valuation, M&A, capital markets analysis and leveraged finance.
The book focuses on the primary methodologies used to determine valuation for public and private companies on a standalone basis, as well as within the context of M&A and capital
markets transactions, restructurings, and investment decisions.

A Word from the Authors, Joshua Rosenbaum & Joshua PearlBusiness Today: Why did the authors in the market was authored by current our book we consulted with top bankof Investment Banking: Valuation, Lev- Wall Street professionals or walked peo- ers, private equity investors, hedge funderaged Buyouts, and Mergers & Acquisi- ple through the core valuation method- professionals, corporate lawyers, accounologies in a practical, step-by-step guide. tants, and business school professors.
tions decide to write this book?
Our book broke ground by doing both.
Feedback on the book has been incredJoshua Rosenbaum & Joshua Pearl:ible. Investment Banking is currently
Eventhebest
businessschools,
includingWe wrote Investment Banking because
being used by numerous bulge bracket
ouralmamaters(Rosenbaum:Harvard
this is the book we wish we had whenbanks and private equity firms, and overCollegeandHarvard
Business
School,we were looking for jobs and internships.
50
undergraduate and MBA programs
Pearl:
Indiana
UniversityKelley
School
It is the ultimate job-seekers guide forhave
incorporated it into their curricuofBusiness),donotquite
teachtheskills
those looking to break into Wall Street.
lum.
Wewere featured in the Wall Street
thatareneededonWallStreet.
Although
There is nothing else on the market that
universities
andotherfinancebooks
proJournal
andseveral Wall Street titansteaches the nuts-and-bolts of the pillars
videafoundation,
they
do
not
capturehaverecommended
our book, includingof corporate finance – valuation, comps,
thespecifictechniques,frameworks,andJosephR.
Perella,David
M. Rubenstein,
DCF, M&A, LBOs and leveraged fireal-world
applications
thatareneededThomasH.
Lee,andJoshHarris.
nance – in such an accessible and effecto
fully
understandthehighly
specialtive manner.
ized world of investment banking.
Since its publication in May 2009, thebook has been, and continues to be, theThe overwhelming majority of books
best-selling valuation book in the world.
In
ourbook,weharnessed
theultimate
available for students, and even financeblendoftheory
andpractice,andfilled
professionals, are written by professors
and have much more of an academic em- the void that was missing in finance lit- BT: How can students interested in a caphasis. These books are centered on the- erature. The financial techniques and ap- reer in finance best prepare for landing
ory, and are far less applicable to how fi- plications in Investment Banking reflect a job in investment banking? How can anance is actually practiced at investment contributions from both academia and student stand out in such a competitivebanks. No valuation book previously Wall Street. Throughout the writing of landscape?
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Josh & Josh: We have recruited and con- less you get this training and experience? kets, what kind of future can students
ducted interviews on-campus for many By teaching all the key technical valua- expect in investment banking and in theyears and have several insights in this tion techniques for investment banking, financial industry in general in the next
area. For your resume, it is important to private equity and hedge funds, our book 3-5 years? Will the outlook change in thehave certain traditional things in your is the ultimate preparation tool for inter- next 5-10 years?
favor – strong grades, leadership expe- views, including a how-to for building
Josh & Josh: First off, let us say thatrience, and other indicators of achieve- financial models.
there is, and always will be, a criticalment and commitment such as sports,
needfor investment banking, arguably
Aswiththeresume,
thekeydifferenmusic, running a business, etc. The reevenmore
so in an increasingly global,
tiatorforinterviewsisamasteryof
thesume points, however, are often necesfast-moving
and complex world. An everfinancetechniques
usedonWallStreet.
sary but not sufficient. Assuming all ofgrowing
globalpool of companies acrossInterviewers
will
be
very
impressed
ifa
the above is in good standing, the best
theworld
needfinancial intermediaries
student
without
prior
investment
bankway to truly distinguish yourself from
for
their
M&A,
equity and debt financing
internshipexperience
knows
the
other students is to demonstrate relevanting
needs,
amongother financial prodinnerworkings
andcomplexities
ofvalfinance working experience, ideally in inucts
andtransactions.
At the same time,uationandmodeling,
andisable
toarticvestment banking .
ulate them. Technical questions are in- investment banks will have to adapt toThis brings us to the ultimate chicken- creasingly commonplace in interviews so new regulations and the ever-changing
and-egg conundrum that our book seeks students should be very prepared. Ques- volatile markets. Long term, investment
to solve for student job-seekers – namely, tions on valuation, comps, DCF, WACC, banking will probably look different
how do you get investment banking or LBOs – all of them are fair game in the than it does today due to new laws andregulatory standards, but it will contincorporate finance experience unless you interviews!
ue to be dynamic and present exciting caget a job on Wall Street; and, conversely,
how do you get a job on Wall Street un- BT: In such tumultuous financial mar- reer opportunities for aspiring students.

This book will surely become an indispensable guide to
the art of buyout and M&A valuation, for the experienced
investment practitioner as well as for the non-professional
seeking to learn the mysteries of valuation.
David M. Rubenstein, Co-Founder and Managing Director, The Carlyle Group

Investment Banking provides a highly practical and relevant
guide to the valuation analysis at the core of investmentbanking, private equity, and corporate finance. Mastery ofthese essential skills is fundamental for any role in transaction-related finance.This book will become a fixture on every
finance professional’s bookshelf.
Thomas H. Lee, President, Lee Equity Partners, Founder,Thomas H. Lee Capital Management

As a practitioner of hundreds of M&A and LBO transactions
during the last 20 years, I recommend this book to advisors,financiers, practitioners, and anyone seriously interested ininvestment transactions. Rosenbaum and Pearl have created
a comprehensive and thoughtfully written guide covering thecore skills of the successful investment professional with particular emphasis on valuation analysis.
Josh Harris, Managing Partner, Apollo Management

FALL 2010 BUSINESS TODAY

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