Investment Banking Book – Accounting (Chapter 1)
The accounting section of FPI’s investment banking book includes:
Accounting and analysis fundamentals
- Accounting framework
- Balance sheet issues
- Income statement issues
- Cash flow statements
Accounting and analysis for mergers and acquisitions
- Acquisition accounting
- Accounting for associates and joint ventures
- Considerations for investment banking
- Comprehensive examples
- New M&A accounting rules
Valuation (Chapter 2)
The investment banking book includes:
Discounted cash flow techniques
- Discounting fundamentals
- Estimating free cash flow for valuation purposes
- The key value drivers of cash flow
- Calculating the terminal value
- Putting it all together – DCF with terminal value calculation
Cost of capital
- An introduction to risk
- Capital asset pricing model (CAPM)
- The Cost of Debt and WACC
Comparable company analysis
- Why do we do comps?
- Comparable universe
- Sources of information
- From Equity Value to Enterprise Value
- Which multiple?
- Using comps
- Special Situations
- Keys to success
Precedent transaction analysis
- Introduction
- Mechanics
- Valuing the target
- Control premia
- Problems with precedent transactions
Financial Modeling (Chapter 3)
The financial modeling section of the investment banking book includes:
Best practices financial modeling
- Introduction
- Introducing the Ribbon
- Quick Access Toolbar
- Page Layout menu
- View menu
- Model set up
- Model structure
- Referencing
- Formatting
- IF and some other logical functions
- Data retrieval – the LOOKUP school
- Volatile functions
- Consolidating data
- Arrays
- Dates
- Switches
- Sensitivity
- Validating data
- Pivot tables
- Model completion
- Charts
- Historic financials
- Forecast financials
- Debt modeling
- Formatting Continued
- Formulas
- Names
- Data functionality
- Auditing and error detection tools
- Auditing a model – a process
Appendix
- Excel tricks
- Excel function keys
- Other shortcuts
Book Review
Below is one of many reviews CFI received from satisfied readers:
“The investment banking manual book covers just about everything you need to know to jump in as a new analyst or associate. For anyone who wants a crash course or refresher on a wide body of knowledge, this is the ebook for you.”
Additional Resources
This Investment Banking Analyst book is a great way to jumpstart your banking knowledge. Whether you are going for an interview, or just started on the job, this book is a great way to get a lot of information in one highly organized format. And the best part is…it’s 100% free!
To learn more and advance your career, check out these additional CFI resources:
- All CFI eBooks
- Investment Banking Interview Questions
- Finance Interview Questions
- Career Map
- See all valuation resources
- See all financial modeling resources
Analyst Certification FMVA® Program
Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.
A well rounded financial analyst possesses all of the above skills!
Additional Questions & Answers
CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.
In order to become a great financial analyst, here are some more questions and answers for you to discover:
- What is financial modeling?
- How do you build a DCF model?
- What is sensitivity analysis?
- How do you value a business?
