national investment banking competition & conference 2015 - competition overview.pdf · the...

National Investment Banking Competition & Conference

NIBC 2015 Competition Overview

June 2014

National Investment Banking Competition & Conference 2015

We would like to invite Undergraduate and Graduate students to compete in the 2015 National Investment Banking Competition to gain

practical exposure to investment banking and distinguish themselves internationally

Invitation to NIBC 2015

Case Components

The First Round of the competition will span 4 weeks, and give

teams of 3-4 direct exposure to the work of investment bankers

40 finalist teams are invited to compete for $15,000 in the Final

Round in Vancouver, judged by managing directors from

investment banks

- Compete with top students from schools across the world

- Analyze 50-page case package with financial models and

data sets prepared by professionals

Case materials include industry primers, templates and guides on

preparing financial models and pitch books to industry standards

Valuation using Discounted Cash Flows, Trading Comparables,

Precedent Transactions, and LBO Methodology (Graduate Division)

Identification and analysis of potential corporate finance

transactions

Gain experience working in a high pressure, time sensitive

environment

Effectively communicate your ideas to the calibre of a pitch in the

investment banking industry

Deliverables: Presentation, Memorandum and Financial Model

Competition Highlights

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2009 2010 2011 2012 2013 2014

UBC Campus

(British Columbia)

Pan Pacific

(National)

Pan Pacific

(National)

Pan Pacific

(North America)

Pan Pacific

(North America)

Pan Pacific

(International)

25 Finalists

(UBC/SFU)

32 Finalists

80 First Round

(CDN)

100 Delegates

37 Finalists

160 First Round

(CDN)

200 Delegates

91 Finalists

480 First Round

(5% US)

300 Delegates

98 Finalists

588 First Round

(20% US, 1% Intl)

300 Delegates

160 Finalists

947 First Round

(32% US, 8% Intl)

300 Delegates

1-Day Event

1-Day Event

5 Workshops

1 Simulation

1.5-Day Event

10 Workshops

1 Simulation

2-Day Event

15 Workshops

1 Simulation

2-Day Event

4 Workshops

3 Simulations

2-Day Event

6 Workshops

3 Simulations

$10k Budget $40k Budget $80k Budget $100k Budget $130k Budget $150k Budget

Macquarie,

TD

Macquarie, RBC,

TD, NBF

Macquarie, RBC, CIBC,

TD, NBF, RJ


TD, BMO, NBF,

Scotia, RJ

PwC, Deloitte, EY

KPMG


TD, BMO, NBF,

Scotia, RJ,

PH&N

KPMG, Deloitte


TD, BMO, NBF,

Scotia, RJ,

PH&N

KPMG, Deloitte, PwC

Keynote Speakers:

RBC Capital Markets (Regional Co-head)

TD Securities (Head, IB)

Keynote Speakers:

CIBC World Markets (Regional Co-head)

Macquarie Capital (CEO, Canada)

Teck Resources (President & CEO)

Keynote Speakers:

CIBC World Markets (Regional Co-Head)

TD Securities (Head, IB)

Goldcorp (Chairman)

Keynote Speakers:

PH&N (VP, Fixed Income)

CIBC World Markets (Co-Head, Wholesale )

RBC Capital Markets (Head, IB)

FirstEnergy Capital

(Co-Founder)

Keynote Speakers:

BMO Capital Markets (Co-Head, Mining)

PH&N (Portfolio Manager)

Leith Wheeler (President & CEO)

B2Gold Corporation

(President & CEO)

Each year students on the Organizing Team have contributed to the growth and success of NIBC NIBC Has Increased the Caliber of its Competition Every Year

History of NIBC

3


Selected Participating Schools

Ryerson University

University of British Columbia University of Waterloo

University of Chicago

Queen’s University

Wilfred Laurier University

Dartmouth College

University of Ottawa

University of Western Ontario

McGill University

Cornell University New York University

University of Toronto

McMaster University

University of California,

Berkeley

Columbia University

York University

Concordia University

University of Michigan

Boston University Johns Hopkins University University of Iowa University of Notre Dame University of California, Irvine

Washington State University,

St.Louis

Ohio State University Arizona State University Brigham Young University

National University of Singapore HEC Paris University of Hong Kong

University of Pennsylvania

University of California, LA Northwestern University Purdue University

Georgetown University

Duke University

University of Wisconsin, Madison University of Minnesota

Nyenrode University The Chinese University

of Hong Kong University of Mumbai

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Academic Partners


Past Winners

5

2014 Undergraduate Division

McGill University

Desautels Faculty

Ivan

Di

RBC Capital Markets

Summer Analyst

Mark

Doric

Goldman Sachs

Summer Analyst

Emily

Ren

RBC Capital Markets

Summer Analyst

Nicholas

Bigelow

CIBC World Markets

Summer Analyst

2013 Undergraduate Division

Richard Ivey School of

Business

Kevin

Zhou

GS Investment

Partners

Analyst

Kevin

Gryp

Silver Lake Partners

Summer Analyst

Feroz

Qayyum

Evercore Partners

Analyst

Rohit

Guntur

Morgan Stanley

Analyst

2012 Graduate Division

Rotman School of

Management

Aman

Malik

Credit Suisse

Associate

Gregory

Jones

BMO Capital

Markets

Associate

Shaaj

Vijay

RBC Capital Markets

Associate

Stephen

Ou

RBC Capital Markets

Associate

2011 Graduate Division

Richard Ivey School of

Business

Arik

Broadbend

Fasken Martineau

Associate

Jeremy

Beadow

BMO Capital

Markets

Associate

Christopher

Chadwick

SAP

Principal

David

Loi

Sprott Consulting

Associate

NIBC 2014 Undergraduate Winners NIBC 2013 Undergraduate Winners NIBC 2012 Graduate Winners


Initial Applications

Application Deadline

1st Round Case Dissemination

1st Round Case Submission

Finalist Candidates Announced

Aug - Sep 2014 Oct 2014 Nov 2014 Dec 2014 Jan 2015

Final Round @ NIBC

Finalist Preparation Period

Competition Process (NIBC 2015)

Realistic Investment Banking Content

Transactions

Datasets

Models

Instructions

First Round (4 weeks)

DCF, Trading Comparables, Precedent

Transactions

Leveraged buyout (Graduate Division)

Transaction ideas

Pitch book, model and memo

Finalists notified 1 month before

Final Round (2 days)

Model and data sets provided

8-hour time slots to develop pitch

First round presentations in board rooms

1-hour time slot to refine pitch

Presentation to Senior Managing Directors of

global Canadian investment banks

Sponsors

Macquarie Capital

CIBC World Markets

BMO Capital Markets

Scotiabank

Phillips, Hager & North

Deloitte

RBC Capital Markets

TD Securities

National Bank

Financial

Raymond James

KPMG

PwC

Video Gaming Industry

Valuation & LBO Analysis

Transaction (To Be Announced)

M&A, LBO, Restructuring

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Competition Process and Timeline

National Investment Banking Competition & Conference 2015 7

Case Development Process (NIBC 2014)

Components Analysis

Industry Analysis Analysis of Trends and Key Players:

LGF, TWX, DIS, VIAB, FOXA, DWA

Industry Presentation Selection of Company:

Lions Gate Entertainment

Company Analysis LGF: History, Trends, Financials,

Valuation, Corporate Finance Activities

Valuation Models DCF, Trading Comps,

Precedents

Transaction Analysis Financial Sponsor Takeout (LBO)

Corporate Finance Activities

Case Package Guidance, Industry Primer,

Comps & Precedent Data

Grading Feedback from Board, Ranking of Submissions

NIBC 2011 NIBC 2012 NIBC 2013 NIBC 2014

FIRST ROUND

Valuation Valuation Valuation Valuation

Fashion

Sports Apparel

Gaming

Media

FINAL ROUND

Acquisition Financing Acquisition Acquisition

Mining

Mining

Gaming

Media

Case Development


First Round Case Scenario and Framework

Selection Criteria

Industry that appeals to competitors and that the Case Committee is familiar with

Moderate complexity in terms of valuation analysis

Operational and financial metrics that students are able to understand

Illustration of financial leverage and other corporate finance concepts

Objectives of First Round Case

Provide students with a useful corporate finance valuation experience

Employ methodologies in investment banking

Gauge a team’s qualification to perform well in the Final Round

Composition of First Round Case

Valuation using Discounted Cash Flows, Trading Comparables, Precedent Transactions, and LBO Methodology

Ranking of company performance drivers and comparison to industry peers

Identification and analysis of potential corporate finance transactions

Deliverables include presentation, memorandum and model

8

Sample NIBC 2013 Case Topic: Valuation and Strategic Review of Wynn Resorts International You are an Analyst at a top-tier investment bank and an important private equity client has asked your Managing Director to prepare a valuation and strategic

review of one of your team’s coverage companies

Directions from your Managing Director include creating a thorough and unbiased analysis of what the company is worth and what type of corporate finance

transactions the company might benefit from in the future

The rest of your team has been traveling on roadshows for the last month and your Associate called in to give you a detailed set of instructions and point you to

materials that might be useful such as:

1) Partially filled out templates for a valuation model based on discounted cash flows, trading comparables and precedent transactions on the company

2) Several relevant documents that provide data on the industry, company and competitive environment that would be useful in valuing the company


Specific Concepts Assigned to Research Ahead of Time

Strategic & Financial Rationales for M&A in Media Industry Stock Versus Cash Consideration

Valuation and Stock Price Impact Deferred Payment Structures, Contingent Value Rights

Accretion / Dilution, IRR and NPV Metrics Board and Shareholder Approvals

Synergies and Operational Efficiencies Management Incentives and Retention

Levered Financing Structures and Debt Metrics Bid Security and Price Protection Mechanisms

Case Material for 8-hour Work Session

Information package with key information and relevant data on Lions Gate and Time Warner

Fully-built Excel model with pre-set variable inputs and pre-formatted summary outputs to be pasted into slides

Director memo from "transaction director" suggesting sequence of analysis and topics of slides

Model Inputs Model Outputs

Premium over Share Price Sensitivities on Forecast Levered/Unlevered Asset IRR and NPV

Earn-out % on Sales or EBITDA Proportion of Shares versus Cash EPS Accretion / Dilution

Size and Timing of Synergies Interest Rate on Corporate Debt Net Debt to EBITDA Ratio

Sample NIBC 2014 Case Topic: Time Warner Acquisition of Lions Gate Entertainment The manager of MHR Fund Management, who owns 37% of Lions Gate and serves as co-chairman, has informed Time Warner he would like to explore a sale of

Lions Gate since his fund focuses on restructuring companies and, while highly profitable, Lions Gate has surpassed this stage

In consideration of the market valuation having increased by 363% in three years and the share price dropping by 10% after its hit franchise Hunger Games

missed its forecast by 3% in November 2013, MHR is willing to vote its shares in support of a deferred earn-out structure

The board of Warner invites a number of investment banks to provide strategic insights in relation to the following questions:

1) The minimum offer price and terms of the earn-out structure at which Lions Gate shareholders might accept the transaction

2) The optimal financing structure and impact of the transaction on Warner’s financials and share price

3) The proposed tactical approach to executing the transaction should Warner’s board want to proceed with the transaction

Final Round Case Scenario and Framework


Martin Haakonsen

TD Securities

Analyst

Case Committee

Amardeep Chandi

Morgan Stanley

Analyst

Case Committee

Brenden Lee

Evercore Partners

Analyst

Case Committee

Gint Austrins

Global Securities

Equity Analyst

Case Committee

Michael Scott

RBC

Capital Markets

Vice President

Case Committee

Professional Involvement

Tracey McVicar

CAI

Private Equity

Managing Partner

Board Member

Kathy Butler

CIBC

World Markets

Managing Director

Board Member

Chris Tsoromocos

Stern Partners

Vice-President

Board Member

Rizvan Dhalla

Morgan Stanley

Managing Director

Board Member

Justin Cochrane

Sandstorm

Resources

SVP, Corporate

Development

Board Member

Jordan Anderson

bcIMC

Assistant Portfolio

Manager

Board Member

Philip Chua

Macquarie Capital

Associate

Case Committee

NIBC Board

Case Development

Scott Powell

MDA Training

President

Board Member

Jacky So

Barclays

Analyst

Case Committee

The cases are designed by NIBC’s Case Committee, which is comprised of professionals who have dedicated their time and experience in financial analysis and

transaction structuring to work with the Organization Team to create sophisticated cases for NIBC

During the case creation process, the Case Committee screens companies, reviews trading comparables and precedent transactions, and consults with industry

experts to identify suitable real-life situations

The Case Committee works with the Organizing Team to prepare a sophisticated financial model and information package for competitors in addition to a

comprehensive case summary for judges

Prior to disseminating the cases, the Case Committee receives input from industry professionals and other Board members

David Lam

Macquarie Capital

Analyst

Case Committee

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Universities 73

Competitors 947

Competing Teams 250

Participating Canadian Schools (NIBC 2014)

Western

Canada Eastern

Canada

Western

Canada

Eastern

Canada

Western Canada

22%

Eastern Canada

39%

US 31%

Asia 7%

Europe 1%

Year 1

Year 2

Year 3

Year 4

MBA

Undergraduate

55%

MBA 45%

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Competition Statistics (NIBC 2014) Geographic Distribution Academic Distribution

Statistics and Canadian Footprint


Year

4

Participating American Schools (NIBC 2014)

Participating European and Asian Schools (NIBC 2014)

12

International Footprint


Other Participating Firms

Participating Investment Banks & Asset Management Firms

Prospective Corporate Sponsors & Partners

13


NIBC Organizing Team Network

14

Year Position Work Experience

Philip Chua 2010 Board, Case Committee Macquarie Capital | UBS Investment Bank

Amardeep Chandi 2010 Director, Conference Morgan Stanley | Greywolf Capital | UBC PMF

Dipak Kamdar 2010 Director, Competition Maybank Investment Bank | Royal Bank of Scotland

Jenny Hu 2010 Associate, Competition McKinsey & Co.

Noam Gilead 2010 Associate, Conference J.P. Morgan | Phillips, Hager & North | UBC PMF

Gint Austrins 2011 Board, Case Committee Global Securities | UBS Investment Bank

Jacky So 2011 Director, Competition Barclays Capital | Bank of America Merrill Lynch

Sean B. McNulty 2011 Director, Marketing CIBC World Markets | Morgan Stanley

Jose A. Gonzalez 2011 Director, External Citigroup | Leith Wheeler

Katherine Barends 2011 Associate, Case PricewaterhouseCoopers | People’s Trust

Jessica Zhang 2012 Associate, Media Bank of America Merrill Lynch | Citigroup

Amelia Lak 2012 Associate, Conference Goldman Sachs | RBC Capital Markets | UBC PMF

Sara Keng 2012 Director, Competition CIBC Commercial Banking | KPMG Advisory

Andra Bosneaga 2012 Director, Conference CIBC World Markets | Birch Hill Equity Partners

Martin Haakonsen 2012 Director, Marketing TD Securities

Vina Yiu 2012 Associate, Competition Bank of America Merrill Lynch | Morgan Stanley

Terence Kwan 2012 Associate, Marketing McKinsey & Co. | Canaccord Financial

David Lam 2013 Chairperson Macquarie Capital | GE Capital | Global Securities

Brenden Lee 2013 Director, Competition Evercore | BMO Capital Markets

Jasmin Kirk 2013 Director, Conference Urban Capital of America | Rabobank

John Sanden 2013 Director, Marketing RBC Capital Markets | Orbis Funds

Charles Wong 2013 Director, Internal Global Securities | RBC Dominion Securities

Carmen Chan 2013 Associate, Case Citigroup | Global Securities

Piper Hoekstra 2013 Associate, Competition Connor, Clark & Lunn | CIBC World Markets | UBC PMF

Derek Dodd 2013 Associate, Conference KKR | RBC Capital Markets | UBC PMF

Jennifer Liu 2013 Associate, Marketing RBC Capital Markets | UBC PMF | National Bank

Garrett Clyne 2014 Director, Competition TD Securities | Bentall Kennedy

Louisa Yeung 2014 Director, Conference Deloitte | TD Securities | Sauder Summit Competition

McKenzie Milhousen 2014 Director, Sponsorship Goldman Sachs | Scotiabank | Orbis Funds

Taylor Carkner 2014 Associate, Competition CIBC World Markets | UBC PMF | Salman Partners

Chris Wong 2015 Director, Competition BMO Capital Markets | Bank of China | TD Bank Group

Nicole Dee 2015 Director, Case Goldman Sachs | Orbis Funds | Deecorp Properties

Leanne Li 2015 Director, Conference Bank of China | International Business Conference

Juliet Zhu 2015 Director, Marketing Silicon Valley Bank | Kerry Properties | Cushman & Wakefield

Sandra Woo 2015 Director, Media Global Securities | Ivanhoe Cambridge

Clarabel Luk 2015 Director, Internal PricewaterhouseCoopers | Wesgroup Properties

Hovy Qiu 2015 Associate, Competition TeamMax Financial | VanString Chamber Music

Soroush Karimzadeh 2015 Associate, Case Autopro Automation | Kruger Products

Jennifer Jordache 2015 Associate, Case Bank of America Merrill Lynch | Nitesco Investments

Karsten Lee 2015 Associate, Marketing HSBC Bank Canada | Nitesco Investments

Nicole Ponto 2015 Associate, Marketing UBC CUS | Alpha Kappa Psi Business Fraternity

“The two-day conference is

also a recruiting dream. The

students are surrounded by

big names and the case

teams get to show off their

best stuff.”

Tim Kiladze

Report on Business

The Globe and Mail


Name Position Year Experience

Chris Wong Director, Competition 4 BMO Capital Markets (Summer Analyst, Toronto)

Nicole Dee Director, Case 4 Goldman Sachs (Summer Analyst, New York)

Leanne Li Director, Conference 3 Bank of China (Summer Intern, Beijing)

Juliet Zhu Director, Marketing 4 Silicon Valley Bank (Summer Intern, Shanghai)

Sandra Woo Director, Media 2 Global Securities (Summer Intern, Vancouver)

Clarabel Luk Director, Internal 4 PricewaterhouseCoopers (Summer Intern, Vancouver)

Hovy Qiu Associate, Competition 2 TeamMax Financial (Vancouver)

Soroush Karimzadeh Associate, Case MBA Autopro Automation (Vancouver)

Jennifer Jordache Associate, Case 4 Bank of America Merrill Lynch (Summer Analyst, Toronto)

Karsten Lee Associate, Marketing 4 HSBC Bank Canada (Summer Intern, Vancouver)

Nicole Ponto Associate, Marketing 2 Alpha Kappa Psi Business Fraternity (Vancouver)

Chris

Wong

Nicole

Dee

Leanne

Li

Juliet

Zhu

Sandra

Woo

Clarabel

Luk

Hovy

Qiu

Soroush

Karimzadeh

Jennifer

Jordache

Karsten

Lee

Nicole

Ponto

15

NIBC Organizing Team 2015

The following slides serve as examples of the case work competitors will perform

Appendix – Case Examples



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