from engineer to banker
DESCRIPTION
From Engineer to Banker. Switch into Fin. Srvs . Consulting. Learn key mgmt. and finance skills. First job. Accenture Capital Markets. Manchester University. BEng Computer Systems Engineering. Technology Consulting CEng Chartered Engineer. Management Consultant. MBA (Finance). - PowerPoint PPT PresentationTRANSCRIPT
Corporate Banking & Securities
Deutsche Bank Group
Deutsche Bank GroupCorporate Banking & Securities
A Deutsche Bank Perspective
Investment Banking Uncovered
Corporate Banking & Securities
Deutsche Bank Group
From Engineer to Banker
2010 DB Blue template
2
BEng Computer Systems Engineering
Technology Consulting
CEng Chartered Engineer
Management Consultant
MBA (Finance)
Industrials M&A Banker
Industrials M&A Banker
Corporate Finance Strategy
Head of CF, DBC Mumbai
First job
Switch into Fin. Srvs. Consulting
Bigger challenge at
‘bulge bracket’
Learn key mgmt. and
finance skills
‘Front office’ investment
banking
Collaborative and collegial, but challenging
Strong focus on the client
Reasonably ‘flat’ and informal with colleagues with most senior people approachable
Need to learn how to navigate the system
Working @ DB
Skills fostered at university and still used today
Be good with people / influence
‘Know what you need to know’ / be a quick learner
Have passion and pride in what you do
Manchester UniversityAccenture Capital
Markets
Corporate Banking & Securities
Deutsche Bank Group
Asset Management
Retail BankingPrivate Wealth Management
Commercial Banking
Investment Banking
Capital Hungry Capital RichEnable flow of capital
Sophistication of clientsLow High
Individuals CorporatesGovernmentInstitutions
HNIsUHNIs
Multiple CorporatesInstitutions
Sums of money involvedLow High
Per Capita Value Creation (Revenue per head)
$200-250k $400-550k $500-600k $1-1.2m
$2-5 m
3
What exactly do banks do?
Corporate Banking & Securities
Deutsche Bank Group 4
How can I get a sizeable chunk in the upcoming IPO
of a technology giant?
As a PE investor, what would be a good M&A
target in the EMEA Healthcare space?
As a Corporate, which currency best suits my borrowing
needs and price considerations?
How can I monetize my stake in a leading public
company ?
What is the best way to divest some of my non-core assets to
free up some capital?
Should I do an IPO to raise funds for my growth plans?
Capital Hungry Capital RichWe enable the flow of capital
What is Corporate Finance?
Corporate Banking & Securities
Deutsche Bank Group
Corporate Finance – An Overview
Understand businesses Identify opportunity Originate transaction
Ind
us
trie
sG
eog
rap
hie
sC
om
pan
ies
Mar
kets
Ex
ec
ute
tra
ns
ac
tio
n
Corporates Investors (Institutional + PE)
Equities
CommoditiesBonds
Forex
Interest rates
Funding needs
Expansion plans
Balance sheet optimsation
Restructuring
IPOs
Private placement
Follow on offering
Debt offering
Acquisition
Divestiture
Privatisation
Spin-off
Drivers
Key metrics / ratios
Business cycle
Macroeconomics
Developed / Emerging
Regulatory regime
Business model
Historic record
Growth prospects
C-suite access
Recent performance
Investor appetite
Future outlook
5
Corporate Banking & Securities
Deutsche Bank Group
Life in Corporate Finance
2010 DB Blue template
6
What it is not What you will getMethod Valuation range per share (GBp)
Trading valuation
Historic trading
12 month low/high– 12m high (11-Apr-13)
– 12m low (13-Jun-12)
Broker valuation
Target price range(b)
– High: Citi (900p)
– Low: Panmure, Gordon & Co (700p)
Comparable trading
valuation
EV/EBITDA 2014E(c)
– 6.5x – 7.5x
– 2014E EBITDA of £151.5m
P/E 2014E(d)– 11.0x – 13.0x
– 2014E EPS of £74.4m
Fundamental valuation
DCF analysis Consensus case
– 10 year DCF
– WACC: 8.0% – 9.0%
– PGR: 0.0% – 2.5%
Take-out valuation
Precedenttransactions
EV/EBITDA 2013E(c)
– 7.0x – 10.0x
– 2013E EBITDA of £143.7m (consensus)
LBO valuation
LBO analysis IRR multiple
– IRR multiple 20%-25%
– Entry and exit multiple 8.0x
– Exit year: 2017
467
784
819
885
801
828
798
905
968
1,128
1,144
878
400 800 1,200 1,600
Corporate Banking & Securities
Deutsche Bank Group 7
A typical day in the life of a Corporate Finance analyst
Reach office , grab a coffee & pick up work from last night“Refine model for discussion”
Discussions with associate“Add new upside scenario to the model”
Client meeting“Discuss financial model with the CFO’s team”
Execution calls“Chase counsels on legal opinions”
…And it’s a wrap!
Switch track to another project“Develop investment case for an upcoming pitch next week”
1
The day begins…
Catch up on news“M&A market in EMEA seems to be really taking off”
Corporate Banking & Securities
Deutsche Bank Group
Common sense
— Think clearly
— Ask questions
Attitude
— ‘Can-do’ attitude
— Teamwork
Communication skills
Technical ability
— Interest in finance
— Comfort with numbers
Attention to detail
Good work ethic
What are investment banks looking for?
8
Corporate Banking & Securities
Deutsche Bank Group
Lifestyle @ DB? Travel?
Compensation?Fun @ work?
Competition? Our industry?