First, let me give you 2 facts.
Fact 1, the most common fee scale of an investment bank on a merger deal is based on Lehman 5-4-3-2-1 formula, this means 5% is paid on the first million dollars of the sale price, 4% on the next million, 3% on the third million, 2% on the fourth million, and 1% on the amount over $4 million dollars. For large transactions, the fees are less than 1% of the deal’s value, still a tremendous amount of money.
The 2nd fact is that taking a company public can also be very expensive. Costs vary, but can be as much as 10% on a $150 million stock issue, not including internal expenses, such as management’s time. Some costs are ongoing, like the cost of Securities and Exchange Commission compliance.
By now, I bet you have many questions in your mind.
Why does investment banking make so much money? Why does investment banking require a top-notch education, stellar grades and extremely competitive business analysts to do their jobs? What is investment banking? Is it investing? Is it banking?
In this training program, we’ll answer all your questions, and learn the business of investment banking.
We’ll cover the specific industry jargon and go through what is the sell side, the buy side. What is investment banking, asset management, sales and trading, as well as hedge funds.
Next, I’ll walk you through some really important concept in financial market. The reason I’m doing this is that Finance knowledge is not only critically important for finance job seekers, but also for anyone who is in business- or wants to own a business. Understanding finance is the “reality check” for your business.
Whether you are seeking for an investment banking position, or you want to learn how to manage your money, become smarter and more aware of opportunities in your life, this course will apply to you.
So what are you waiting for? Let’s get started.