StuCo:InvestmentBanking101CourseSyllabus

CarnegieMellonUniversity

Instructor:TommyParkPhone:(+1)443.315.9326Email:tommypark@cmu.eduOfficeHours:ByappointmentCourseMeetingTimes98‐114A:Mondays6:30PM~7:50PMMargaretMorrisonA14CourseDescriptionThisisanintroductorycourseoninvestmentbanking.Studentswillhaveanunderstandingoftheprocessofrecruitment,internshipexpectations,andgeneralcorporatefinanceknowledgeattheendofthecourse.ThiscourseistailoredtowardsstudentswhohavenopreviousexperienceandareactivelypursuingafinanceinternshipinInvestmentBankingDivisionsofvariousfinancialfirms.Studentswillhavetheopportunitytositwiththeinstructortoaskquestions,receiveresumecritique,and/orhaveamockinterview.ThiscourseisnotintendedtogiveadetailedunderstandingofCorporateFinance,AccountingorFinanceingeneral,buttoprovideajumpstartforthosewhoarenotfamiliar.HighlyRecommendedReadingsMonkeyBusiness:SwingingThroughtheWallStreetJunglebyJohnRolfeandPeterTroobBank:ANovelbyDavidBledinCourseScheduleWeek1–AnIntroduction

i. WhatisanInvestmentBank?ii. Introductiontothiscourse

a. Syllabusb. Policiesc. Thingstodowhiletakingthiscoursed. Thingsthatarenotcoveredinthiscoursee. Howtopassthiscourse

iii. Why?Week2–MLKDay(Noclass)Week3–IntroductiontoIBD,CapitalMarketsandSalesandTrading

i. WhatisInvestmentBanking(continued)ii. OverviewoftheFinancialsMarkets

iii. OverviewofanInvestmentBankiv. InvestmentBankingvs.CommercialBankingv. MoreaboutInvestmentBankingDivision(IBD)andtheCapitalMarketsvi. SalesandTradingvii. IPOs,M&As,CapitalRaising,etc.viii. FindingyourplaceindifferentdivisionsofanInvestmentBank

Homework(Optional):SendmeacopyofanarticleaboutrecentM&A/IPO/DebtIssuance/LBO/Restructuringdealsthatyoucanfind.Writeabriefdescriptionaboutthedealterms,playersandanyotherimportantinformation.Youmayincludeyourthoughtsabouttheimplicationsandimportanceofthedealyouchose.PleaseseeBlackboardformoreinstructions.Week4–Preparingforafinanceinternship

i. Resumea. Importanceb. Howtowritethemc. CoverLettersd. Do’sandDon’ts(CommonMistakes)

ii. InterviewPreparationa. QuestionsAskedb. QuestionstoAskc. Whattheylookfor?d. Whatshouldyoulookfor?

Homework(Optional):Writearesumeorfixyourpre‐existingresumeandbringacopytoclassfortheinstructortoreview.Week5–Settingtherightmindset

i. Internshipsa. Expectationsandbehaviorb. Theranks,theirrole,andthingstolearnfromthedifferentpositionsc. Yourroleinaninvestmentbankingdivisiond. Whatyoushouldtrytodo/learnduringyourinternshipandhowto

makeitintoasuccessfuloneii. GeneralBankingProcess

a. Introductiontopitchesi. The“DealTeam”ii. Pitchbookcompositioniii. Dealvs.Non‐deal

b. DealsandClientsc. Researchd. Meaninglesstaskse. Execution

Homework(Optional):Pleasecompleteabriefcheckpointquiz(notgraded)postedonBlackboard.Youmaytakethequizmultipletimes.Week6–MonkeyBusiness

i. Researcha. Reutersb. BloombergTerminalsc. EDGARd. S&P/Moody’s/Fitch

ii. Whatcountsasresearchandwhatdoesn’tiii. Dailytasksiv. WorkHoursforInterns

Week7–Pitchbooks,PublicInformationBooklets,etc.

i. The“Art”ofPitchbooksa. Organizationofapitchbookandthevariationsb. MicrosoftOfficeShortcuts:whyyouneedtoknowthem

ii. The“Science”ofPitchbooksa. Howfinancialstatementsareusedb. Appropriatemultiplesandtheirsignificancec. Sector‐specifictasks

Week8–CompanyValuation

i. Whatareinvestmentbanksdoingfortheirclients?ii. Whatarethemethodscommonlyused

a. ComparableCompanyAnalysisb. PrecedentTransactionAnalysisc. DiscountedCashFlow

iii. Whataretheirsignificance(prosvs.cons)?iv. Whydowecare?

Week9–Midterm

i. Multiplechoiceii. Extracreditpointsavailableforthosewhoreadtheoptionalbuthighly

recommendedbookslistedinthissyllabusWeek10–CompanyValuation:ComparableCompanyAnalysis(continued…)Week11–CompanyValuation:PrecedentTransactionAnalysis(continued…)Week12–CompanyValuation:DiscountedCashFlow(continued…)Week13–CompanyValuation:Miscellaneousmethods/Review(continued…)Week14–CourseWrap‐up

i. Finalremarks

ii. Afterthiscourse…iii. Furtherreadingsiv. Networkingv. WordofCautionvi. QuestionsandAnswers

Week15–FinalExam

i. Multiplechoiceand“fillintheblanks”ii. Cumulativeiii. Extracreditpointsavailableforthosewhoreadtheoptionalbuthighly

recommendedbookslistedinthissyllabus