New York University

School of Continuing and Professional Studies

INVESTMENT BANKING FUNDAMENTALS

Instructor:
Course #:

Robert K. Nagle
X51.9160

Course Objectives:
The intent of this course is to provide students with an introduction to the investment banking industry.
The course will discuss the organization of investment banks and the key services provided in addition to
the regulatory environment in which they operate. Topics to be reviewed include raising capital, strategic
advisory, principal transactions and asset management. In addition, students will work in teams to
complete a project which will involve creating a pitchbook used in investment banking, and they will be
introduced to the research tools bankers utilize as well as financial modeling techniques for valuation.
Text (optional):
The Business of Investment Banking, K. Thomas Liaw, Wiley, 2nd Edition
Other:
Internet Resources:

Print:

www.bloomberg.com
www.hoovers.com
www.freeedgar.com / www.sec.gov
http://finance.yahoo.com/
Wall Street Journal

Grading: Attendance/Class Participation, 20%; Midterm, 40%; Final Project, 40%

Session 1:

Introduction to Investment Banking

Define investment banking and its major functions, the services provided and its
customers. Discuss the internal organizational structure of an investment bank, the
various divisions and types of positions. Review the history of investment banks and
also discuss the current landscape including key themes and trends.
Handout: Pre-Course Survey
Reading: Liaw; Chapters 1, 2, 3, 20

Session 2:

Regulatory Environment/Introduction to Final Projects

Review the investment banking regulatory environment including the role of the SEC.
Discuss the various types of SEC filings.
Introduce Final Projects and break class into teams.
[Allow time for team meetings.]
Handout: SEC Filings
Reading: Liaw; Chapter 16

Session 3:

Financial Instruments/Valuation Methodologies

Review the various types of financial instruments associated with investment banking,
financial statement analysis and relating to the topic of valuation.
Review valuation methodologies utilized by investment bankers. Provide an introduction
into comparable company analysis, which will be used in the Final Projects.
[Allow time for team meetings.]

Session 4:

Financial Modeling (COMPUTER LAB)

Provide an introduction to financial modeling by leveraging a completed comparable
company analysis model. Students will gain hands-on experience and use this skill in
their Final Projects.
[Allow time for team meetings.]

Session 5:

Midterm Exam/Issuing Securities to the Public

MIDTERM EXAM SCHEDULED
Commence discussion on how investment banks issue securities to the public. Topics to
be included are: the deal process, role of investment banks, risks to investment banks,
role of the underwriting syndicate and fee structure. A more detailed look will be given
to initial public offerings (IPOs).
[Allow time for team meetings.]
Reading: Liaw; Chapters 7, 8

Session 6:

Mergers & Acquisitions

Review the basic concepts of mergers and acquisitions, buyers and sellers motivations,
valuation, due diligence, fairness opinions, financing of M&A transactions and AntiTrust regulations.
[Allow time for team meetings.]
Reading: Liaw; Chapter 6

Session 7:

Takeover Defense Material

Review the key components of takeover defense strategies and techniques as related to
advisory services. Topics include: staggered Boards, unequal voting rights, poison pills,
anti-greenmail provisions and strategic sales.
[Allow time for team meetings.]

Session 8:

Final Projects/Presentations and Career Guidance

FINAL PROJECTS ARE DUE. Teams will make their presentations.
Career guidance commentary.
Handout: Interviewing at I-banks
Reading: Liaw; Chapter 4