Master Accretion / Dilution so you can ace your Investment Banking, Private Equity, and Investment Management interviews. We’ll break everything down with a simple 3-Step Framework as well as tips on how to avoid common pitfalls. Let’s jump in! In this article, you will learn: Accretion / Dilution: what it is, why it matters, and…
EBITDA is a commonly used profit metric that represents a ‘proxy for Cash Flow.’ However, analysts must be careful when analyzing EBITDA because it excludes the impact of Depreciation & Amortization, Interest, Taxes, Capital Expenditures, and the impact of Changes in Net Working Capital. In this article, you will learn the definition, common uses, and pitfalls…
The Paper LBO, a full LBO analysis completed with pen and paper, is an increasingly common question in Investment Banking and Private Equity interviews. Understandably, the thought of doing mental math on the spot and walking through an entire LBO analysis is intimidating. But Paper LBOs do not need to be such a scary prospect….
Want to understand how Hedge Funds vs Mutual Funds operate with simple, visual, and Plain-English explanations? After reading this article, you’ll understand: TL;DR Want To Learn More About Finance? Check out all of our (free) deep-dive articles in our Analyst Starter Kit: Hedge Funds…A Common Source of Confusion The Finance world is filled with a variety of confusing and…
Master the concept of Negative Working Capital so you can use it on the job in Investment Banking, Private Equity, and Investment Management. In this article, you will learn: Why Negative Working Capital matters. How Negative Working Capital creates excess Cash Flow (essentially a ‘Free Loan’) for a Business. The two primary drivers of Negative…
Want to learn about the Investment Banking Career Path with simple, visual, and Plain-English explanations? If you’re exploring Investment Banking as a career option, you won’t find a more thorough overview. After reading this article, you’ll understand: What Investment Banks (and Investment Bankers) do. The levels within the Investment Banking hierarchy. The two main entry…
Master the concept of Deferred Revenue so you can use it on the job in Investment Banking, Private Equity, and Hedge Funds or Mutual Funds. In this article, you will learn: What type of transaction creates Deferred Revenue for a Business. Why we record Deferred Revenue as a Liability. The four steps of a Deferred…
‘What is an Investment Bank?’ is a common question with a lot of confusing answers. In this visual, Plain-English guide we’ll walk you through all the ins and outs of all you need to know about Investment Banking. TL;DR Investment Banks provide two main services: Advisory and Capital Raising (Debt & Equity). Investment Bankers are…
Learn the top Investment Banking Interview Questions you’ll need to master in order to land a coveted role in Investment Banking. In this guide, we’ll cover the most common Investment Banking interview questions that you will encounter. For now, we’ll focus solely on the most common Investment Banking Technical Questions and Answers. Over the coming…
‘What is a Hedge Fund?’ is a question that usually ends with more confusion than clarity. In this guide – written by an industry insider who worked at a multi-billion dollar Hedge Fund – we make it simple. In this article, you will learn: What is a Hedge Fund? (History, Typical Investments, and Strategies) How…