Advanced applicationcapstone
Investment banking technical capstone
Connect accounting, valuation, and deal mechanics in one cumulative case.
16 min read · 3 question check
What you will be able to do
- Keep enterprise and equity value consistent.
- Use ranges and sensitivities rather than false precision.
- Finish calculations with a client implication.
Diagnose
Clarify the company, transaction, capital structure, and requested output before touching the numbers.
Calculate
Move from statements to cash flow, valuation, and transaction impacts in a consistent order.
Advise
Give a range, sensitivities, key assumptions, and the implication for the client decision.
Worked example
A target with $80M EBITDA at 9–11× implies $720–880M EV. Subtracting $120M net debt gives $600–760M equity value before transaction adjustments.
Interview framework
- 1Context and objective.
- 2Accounting and cash-flow bridge.
- 3Valuation range and sensitivities.
- 4Transaction mechanics and recommendation.
Check yourself
At 10× $80M EBITDA, enterprise value is:
$800M EV less $120M net debt gives equity value of:
A defensible valuation conclusion is:
Key takeaways
- Keep enterprise and equity value consistent.
- Use ranges and sensitivities rather than false precision.
- Finish calculations with a client implication.