Module ASB-3702:
Investment Banking

Overview

Introduction to investment banking; Tools of valuation: analysing banks financial performance; Tools of valuation: comparable companies analysis; Tools of valuation: precedent transaction analysis; Tools of valuation: discounted cash flow analysis; Mergers and acquisitions; Leverage buyouts.

Assessment Strategy

-threshold -D- to D+ Satisfactory standard:Some major omissions or inaccuracies in the deployment of information/skills.Some grasp of theoretical/conceptual/practical elements.Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.

-good - B- to B+ Very good performanceMost of the relevant information accurately deployed.Good grasp of theoretical/conceptual/practical elements.Good integration of theory/practice/information in pursuit of the assessed work'sobjectives.Evidence of the use of creative and reflective skills.

-excellent - A- to A+ An outstanding performance, exceptionally able. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

-another level- C- to C+ Average Standard: Much of the relevant information and skills mostly accurately deployed.Adequate grasp of theoretical/conceptual/practical elements.Fair integration of theory/practice/information in the pursuit of the assessed work's objectives.Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Analyse and critically discuss leverage buyouts. Students will have an understanding of the difference between M&As and LBOs as well as about the characteristics of a strong LBO candidate. They will be able to understand the macroeconomic factors driving recent trends in LBOs.

• Analyse and critically discuss mergers and acquisitions. Students will learn the reasons that motivate companies to merge, the different types of merge and the actors involved in M&As.

• Understand the activities of investment banks such as: underwriting, advisory, trading and brokerage and asset management.

• Use the three tools of valuation (comparable company analysis, precedent transaction analysis and discounted cash flow analysis) to evaluate banks and companies.