Investment Banking Financial Services Valuation Service Process
📊
Investment Banking Financial Services Valuation Service Process
Expert valuation process for investment banking, covering financial analysis, industry trends, risk factors, and client recommendations.
1
Identify key business features
2
Gather required financial information
3
Analyze financial statements
4
Calculate key performance indicators
5
Conduct industry profiling (analysis of trends, competitors, market structure)
6
Determine company-specific risk factors and required rate of return
7
Determine future cash flows predictions based on past trends and growth rates
8
Select the appropriate valuation models
9
Approval: Valuation Model Selection
10
Perform valuation analysis
11
Calculate intrinsic value of the company based on analysis
12
Create a report detailing the valuation analysis
13
Approval: Valuation Report
14
Discuss valuation analysis and report with the investment banking team
15
Prepare the presentation to provide recommendations to the client
16
Approval: Presentation
17
Present valuation report and recommendations to the client
18
Modify valuation analysis based on client feedback
Identify key business features
In this task, you will identify the key features and characteristics of the business. This information is crucial in understanding the nature of the company and its operations. Take note of the unique selling points, competitive advantages, and any other factors that differentiate the business from its competitors. Consider the impact these features have on the company's financial performance and valuation. What are the key business features that set the company apart?
Gather required financial information
To perform a valuation analysis, you need accurate and comprehensive financial information. In this task, collect all the necessary financial statements such as balance sheets, income statements, and cash flow statements. Remember to consider both past and current financial data. Are there any challenges or obstacles you anticipate in gathering this information? How will you overcome them? Please provide a brief overview of the financial statements you will gather.
Analyze financial statements
In this task, you will analyze the financial statements gathered in the previous step. Look for key financial metrics and ratios that provide insights into the company's financial health. Identify any trends or patterns that emerge from the analysis. Consider the company's liquidity, profitability, and solvency. What are the main financial indicators you will be looking at? How will you interpret the findings? Please provide a brief description of the financial analysis process.
Calculate key performance indicators
Key performance indicators (KPIs) provide a quantitative measure of a company's performance. In this task, you will calculate relevant KPIs based on the financial information analyzed in the previous step. These indicators may include profitability ratios, liquidity ratios, or efficiency ratios. What are the specific KPIs you will calculate? How will these indicators provide insights into the company's performance?
Conduct industry profiling (analysis of trends, competitors, market structure)
To accurately value a company, it is essential to have a deep understanding of the industry in which it operates. In this task, you will conduct an industry analysis to identify key trends, competitors, and the overall market structure. Consider factors such as market growth rates, industry dynamics, and competitive landscape. How will this industry profiling contribute to the valuation analysis? Please provide a brief overview of the industry profiling process.
Determine company-specific risk factors and required rate of return
Every company is exposed to certain risks that affect its valuation. In this task, you will determine the company-specific risk factors and calculate the required rate of return. Consider factors such as industry risks, financial risks, and external risks. How will these risk factors be incorporated into the valuation analysis? Please provide a brief description of the process for determining company-specific risk factors and the required rate of return.
Determine future cash flows predictions based on past trends and growth rates
Future cash flows are a critical component of any valuation analysis. In this task, you will predict future cash flows based on past trends and growth rates. Consider factors such as revenue growth, operating expenses, and capital expenditures. How will you forecast future cash flows? What assumptions will you make regarding the company's growth prospects? Please provide a brief overview of the process for predicting future cash flows.
Select the appropriate valuation models
There are various valuation models to choose from, each tailored for specific situations. In this task, you will select the most appropriate valuation model(s) to use in the analysis. Consider models such as discounted cash flow (DCF), comparable company analysis (CCA), or precedent transactions analysis (PTA). How will the choice of valuation models impact the overall analysis? Please provide a brief description of the process for selecting the valuation model(s).
1
Discounted Cash Flow (DCF)
2
Comparable Company Analysis (CCA)
3
Precedent Transactions Analysis (PTA)
4
Earnings Multiple
5
Asset-based Valuation
Approval: Valuation Model Selection
Will be submitted for approval:
Identify key business features
Will be submitted
Gather required financial information
Will be submitted
Analyze financial statements
Will be submitted
Calculate key performance indicators
Will be submitted
Conduct industry profiling (analysis of trends, competitors, market structure)
Will be submitted
Determine company-specific risk factors and required rate of return
Will be submitted
Determine future cash flows predictions based on past trends and growth rates
Will be submitted
Select the appropriate valuation models
Will be submitted
Perform valuation analysis
In this task, you will perform the valuation analysis using the selected valuation model(s). Apply the chosen methodologies and formulas to determine the value of the company. How will you incorporate the financial data, industry analysis, and future cash flow predictions into the valuation analysis? Please provide a brief overview of the valuation analysis process.
Calculate intrinsic value of the company based on analysis
The intrinsic value represents the true worth of a company. In this task, you will calculate the intrinsic value based on the analysis performed in the previous steps. What formula or method will you use to determine the intrinsic value? How will this value be interpreted? Please provide a brief description of the process for calculating the intrinsic value.
Create a report detailing the valuation analysis
A comprehensive report is essential to communicate the findings of the valuation analysis. In this task, you will create a detailed report that highlights the key aspects of the analysis. Consider including sections on financial analysis, industry profiling, valuation model selection, and the calculated intrinsic value. What format or structure will the report follow? How will you present the information in a clear and concise manner?
Approval: Valuation Report
Will be submitted for approval:
Perform valuation analysis
Will be submitted
Calculate intrinsic value of the company based on analysis
Will be submitted
Create a report detailing the valuation analysis
Will be submitted
Discuss valuation analysis and report with the investment banking team
Collaboration and teamwork are important in the investment banking process. In this task, you will discuss the valuation analysis and report with the investment banking team. How will you present the findings and engage the team in a meaningful discussion? What feedback or insights are you looking to gather from the team? Please provide a brief description of the discussion process with the investment banking team.
Prepare the presentation to provide recommendations to the client
A well-prepared presentation is crucial to effectively communicate the valuation analysis and recommendations to the client. In this task, you will prepare a presentation that summarizes the key findings and provides recommendations. What visuals, charts, or graphs will you include in the presentation? How will you structure the presentation to convey the information in a compelling and persuasive manner?
Approval: Presentation
Will be submitted for approval:
Discuss valuation analysis and report with the investment banking team
Will be submitted
Prepare the presentation to provide recommendations to the client
Will be submitted
Present valuation report and recommendations to the client
In this task, you will present the valuation report and recommendations to the client. Use your presentation skills to effectively communicate the analysis findings and recommendations. How will you engage the client during the presentation? How will you address any questions or concerns that may arise? Please provide a brief description of the presentation process with the client.
Modify valuation analysis based on client feedback
Clients may provide feedback or request modifications to the valuation analysis. In this task, you will consider the client's feedback and make necessary revisions to the analysis and report. How will you address the client's feedback? What changes or adjustments will be made to the valuation analysis based on the feedback received? Please provide a brief description of the process for modifying the valuation analysis.
