Introduction to Investment Banking

Lifecycle of a company
Understand the various stages in a company's life and how Corporate Finance is used to make
professional business decisions.

Why Corporate Finance

An overview of the Corporate Finance tools and frameworks that are typically used to make financial
decisions in a company.

The Company and its financial statements

Revenue & Gross Margin
What is classified as revenue and how are gross margins and profits calculated? Compare a
company's income statement to a personal income statement to understand the difference and
similarity.

Operating Expense & Net Income

Understand what is the difference between Cost of Goods Sold and Operating Expenses. How to
calculation Operating Income, Net Income and Profit After Tax. Become familiar with all the
components of Operating Expenses and Non-operating Expenses.

Gross & Net Margin Explained

Learn gross margins by using examples of Amazon and Google. Also understand how gross margins
are very different from net margins.

Advanced Income Statement

Case study of Dominos Pizza Income statement is dicussed. Understand how Dominos classifies
raw materials, salaries, restaurant expenses etc.

Revenue Recognition
Understand the difference between cash and accrual accounting. Learn how to use MS Excel for
basic accounting entries. Learn why not all revenue is alike - why is some accounted for immediately
and others accounted for later.

Expense Recognition
Understand the difference between cash and accrual accounting. Understand why not all expenses
are alike - why are some accounted for immediately and others accounted for later.

Analyzing Dominos Income Statement - Revenue & Margins

Use MS Excel to recreate Dominos Income Statement. Learn how to use Yahoo Finance and
Dominos annual filings to get relevant financial data. Learn to build basic financial ratios,

benchmarking analysis such as - revenue growth rate, Salary as % of revenue, Gross Margin,
Operating Income as % of Revenue. Learn to ask strategic questions about a company's operations.

Analyzing Dominos Income Statement - Debt & Interest

How is Dominos income statement affected if it raises debt. Learn how to build Interest expense line
item using MS Excel. How do you decide how much maximum debt Dominos can raise? Understand
the rationale behind Dominos market capitalization.

Balance Sheet Basics - Assets

Learn the components of a basic balance sheet. Find out what constitutes current and non-current
assets.

Balance Sheet Basics - Liabilities & Net Worth

Learn liabilites and its different types. Calculate net worth and shareholders equity.

Financial Crisis of 2008

Understand the mechanics of the 2008 recession and why it is called a "balance sheet recession".
What did Lehman Brothers do wrong? Why did they and a bunch of other investment banks go
bankrupt.

Dominos Pizza Balance Sheet

Case study of Dominos Pizza balance sheet and its individual line items - understand terms such as
gross block, fixed assets, debtors, advances, provisions, secured loans, paid up capital etc

Analyzing Dominos Pizza's Balance Sheet

Case study of Dominos Pizza balance sheet. Strategically analyze why gross block is increasing and
what are its implications on the company. How are the companies operations affected if inventories
are increasing. Find out from the balance sheet how is Dominos financing its growth - is it through
equity or through debt?

Double Entry Book-keeping

Learn how to balance a balance sheet using double-entry bookkeeping. Understand the rationale
behind the basic formula Assets = Liabilities + Net Worth

Working Capital and Debt / Equity Ratio and Return on Net Worth
Find out why working capital is critical to a company and how to calculate it. Learn how to calculate
Debt/Equity ratio and Return on Net Worth

Cash Flow Statement Basics

"Cash is King". Learn how the cash flow statement connects the balance sheet and income
statement. Find out the various kinds of Cash Flows - Operating, Investing and Financing activities.

Building a Cash Flow Statement

Build a basic cash flow statement using MS Excel. Construct the cash flow statement step by step for
activities such as opening new stores, revenue and accounts receivables.

Analyzing a Cash Flow Statement

Strategicaly analyze a cash flow statement using liquidity ratio, free cash flow, operating cash flow as
% of sales, capex ratio etc.

Capex
How is Capex different from normal operating expenditure. Why is Capex treated differently.
Understand Capex differences is various industries.

Depreciation & Amortization

Learn how Capex is expensed and its relation to Depreciation. Build a basic depreciation schedule
using MS Excel. Also understand how amortization is different from depreciation.

Taxes

Understand the basics of Corporate Tax and how to calculate it. What is the difference between Tax
payable and Tax expense how does that relate to deferred tax asset or liability.

Building a 3 statement model

Learn to think like a financial analyst and build a basic 3 statement model using MS Excel - what
impact each busines activity has on all the 3 financial statements.

Financial Projections
How to build financial projections for 5 years. Project customers, revenue, expenses, interest, tax
and profits using MS Excel.

Financial Projections for a TV Channel

Case study of detailed financial model of a TV Channel. Understand revenue build-up, sensitivity
analysis, building assumptions, beginning and ending cash balance, hiring plan, marketing plan

The Share and Valuation

Shares
What is a share? What is the difference between a private and apublic company? How does equity
dilution take place as new investors come in.

Earnings per Shares

Understand the most important profitabilit metric in a public company - EPS / Earnings per share and
how to calculate it.

Private and Public Companies

What are the pros and cons of a private and public companies. Which is better and why?

Book Value and Market Value

Understand why the book value and market value of the same company could be very different
values. What contributes to this difference?

P/E Ratio
Learn all about the most important metric to value publicly listed companies - P/E - Price to Earnings
Ratio. Is higher P/E ratio necessarily better?

Time Value of Money

All valuation in corporate finance depends on the fundamental concept of Time Value of Money.
Using real life case studies understand why cash today is more valuable than cash tomorrow and
how to value such future cash flows.

Net Present Value

Perform one of the most important roles of a Financial Analyst by learning how to calculate ROI on a
project by understand Net Present Value of future cash flows.

Weighted Average Cost of Capital

Learn how to calculate the discount rate or the WACC / Weighted Average Cost of Capital for a
company. What is the rationale behind WACC and why does it differ between industries and
companies.

Discounted Cash Flow

The most popular valuation metric used by all financial analysts and investment bankers. Understand
how to quantify a companies future cash flows and how to arrive at a per share equity value based
on future cash flow projections. Also learn how to step by step calculate Free Cahs Flow using MS
Excel.

Comparable Trading Analysis

Learn the quick way to approximately value a company - public or private using comparable trading
analysis.

Comparable Acquisition Analysis

Learn the quick way to approximately value a company - public or private using comparable
acquisition analysis.

Raising Money
Raising Money - Early Stage
How to raise money for a startup. Who are the investors. How much equity stake to dilute for how
much investment. Fund raising strategy.

Raising Money - Late Stage

How to raise money for a growth stage startup. Who are the typical investors and how much equity
stake will you dilute.

Pre and Post Money Valuation

Learn how companies are valued by investors. What is pre-money and post-money valuation. What
are the factors affecting how much money to raise and when to raise it. .

Equity versus Debt

Pros and cons of raising money through equity and debt. How do companies decide what to use and
when to use.

IPO
What is an IPO. Understand the step by step process involved in an IPO. What is the role of an
investment banker in an IPO. Examples of Facebook, Zynga and Groupon IPO.

IPO Valuation
How are shares priced in an IPO. What is triangulation. How is the investor price feedback factored
in while pricing. What is a price range. IPO filing prospectus.

How to raise money using debt

Using case studies understand when to use debt or equity to raise money. How does debt improve
ROI.

Types of Debt
Convertible Debt, Term Loans, Syndicated Debt, Bonds - who provides these loans, what are typical
amounts.

Debt Yield
Understand the most important concept of debt/bonds - the Yield. Learn how to calculate it and how
it is related to coupon and price. What is the relation between interest rates and yield.

Debt Ratios and Ratings

Use debt ratios to understand the quality of debt. What are debt rating agencies, who are they and
what do they do. Find out what the different rating scales are. Debt/Equity ratio, Interest coverage
ratio.

Capitalization Structure
How to build a Cap table for a company. How does ownership change step by step. How does
valuation and dilution change at every step.

Basic M&A with SBC-AT&T acquisition example

Understand basic M&A concepts with the SBC-AT&T and Google-YouTube example.

Google-Youtube acquisition and key considerations in a M&A

What are the key considerations in a M&A - Price, Reps, Warranty, Integration plan etc

Advanced M&A - Accretion & Dilution

What is an accretive and dilutive M&A deal. Why do some M&A deals go bad. What is the math
behing merging 2 companies. What is the new share price of the combined company.

Advanced M&A - Goodwill, M&A Arbitrage

What is goodwill in a M&A deal and how is it calculated. What is the relation of the share price to
accretion and dilution.

AT&T-SBC Merger
Detailed analysis case study on the AT&T-SBC merger. How much did the pay, what premium, cash
or stock, what were the synergies, what was the rationale for the deal and what does the new
company look like.

Introduction to Venture Capital & Termsheet

How is a Venture Capital Fund structured and how do they work.

Termsheets - Liquidation Preference - Drag Along

Understand critical terms in a termsheet like liquidation preference and drag along. Learn how to
negotiate these terms with an investor.

Advanced Venture Capital and Termsheet

Understand critical terms in a termsheet like right of first refusal and board control. Learn how to
negotiate these terms with an investor.