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- First Step to Final Offer 1/14/25
First Step to Final Offer 1/14/25
Brooks Gammill
January 14, 2025
Your weekly round-up of an M&A deal walkthrough, insightful market news summaries, technical quiz questions, and various internships, events, and diversity programs. A key resource to best prepare yourself for finance recruiting. If someone sent you the newsletter subscribe below!
CAREER OPPORTUNITIES
RecruitU Partner Opportunities
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Class of 2028 Opportunities
Class of 2027 Investment Banking Opportunities
Scotiabank 2026 Investment Banking Summer Analyst, LATAM Link
CIBC 2026 Investment Banking Summer Analyst - Financial Institutions Link
CIBC 2026 Investment Banking Summer Analyst - Energy, Infrastructure & Transition Link
CIBC 2026 Investment Banking Summer Analyst - Global Diversified Industries (Chicago) Link
Truist 2026 Securities - Investment Banking - Summer Analyst Program Link
UBS 2026 Summer Internship - Global Banking Link
Barclays Banking Analyst (Coverage/M&A) Summer Internship Program 2026 New York City Link
Barclays Global Transaction Banking Analyst Summer Internship Program 2026 New York City Link
Barclays Banking Analyst (Capital Markets) Summer Internship Program 2026 New York City Link
Aeris Partners Tech M&A Investment Banking Summer Analyst 2026 Boston Link
Aeris Partners Tech M&A Investment Banking Summer Analyst 2026 San Francisco Link
Class of 2027 Other Finance Opportunities
Blackstone 2026 Blackstone Summer Analyst Programs - Multiple Locations Link
Ares Management 2026 Summer Intern Link
Bain Capital 2026 Special Situations Summer Analyst Link
Bain Capital 2026 Credit Summer Analyst Link
Bain Capital 2026 Summer Analyst, Path into Private Equity Link
KKR & Co 2026 Summer Analyst Program Link
Nomura Securities 2026 Global Markets Summer Analyst Program - NYC Link
To see c/o 2027 opportunities, click here: Class of 2027 Application Tracker
Class of 2026 Opportunities
TECHNICAL QUESTION OF THE WEEK:
Why is it important to select Public Comps and Precedent Transactions that are similar? |
MARKET NEWS
Goldman Sachs Restructures to Enhance Financing Capabilities
Goldman Sachs is restructuring its operations to strengthen its position in the financing sector. The firm has established the Capital Solutions Group, a new division within its global banking and markets unit, aimed at providing comprehensive financing solutions for large deals and corporate clients. This strategic move reflects Goldman Sachs' commitment to becoming a leading player in the competitive financing landscape.
Source: The Wall Street Journal
Steve Cohen's Point72 Asset Management Achieves 19% Return in 2024
Steve Cohen's hedge fund, Point72 Asset Management, reported a 19% return in 2024, outperforming peers like Citadel and Millennium Management. This marks a significant increase from the 10.6% gain in 2023.
In contrast, Cohen's New York Mets concluded their 2024 baseball season with a playoff loss, highlighting the varied outcomes of his ventures
Source: The Wall Street Journal
Wall Street Bonuses Set for Significant Increase in 2025
Wall Street is set to see a significant boost in bonuses in 2025, with major banks like JPMorgan Chase, Goldman Sachs, and Bank of America projected to increase their bonus pools by double digits. Investment bankers, in particular, are expected to see a 10% to 15% rise in their bonuses, reflecting a strong rebound in dealmaking and capital markets activities. This comes after a 24% global increase in investment banking fees, driven by growth in mergers and acquisitions, debt capital markets, and equity capital markets. The bonus hikes are also a strategic move by banks to retain top talent as competition for skilled professionals intensifies in the recovering financial sector.
Source: Bloomberg
M&A DEAL OVERVIEW
Goldman Sachs Private Equity in Final Talks to Acquire Trackunit
Goldman Sachs' private equity division is reportedly in the final stages of negotiations to acquire Trackunit, a leading provider of telematics solutions for the construction industry. This potential acquisition underscores Goldman Sachs' strategic focus on expanding its portfolio in the technology and industrial sectors. Trackunit's advanced fleet management systems are integral to the construction sector, offering real-time data insights that enhance operational efficiency and safety. The deal is expected to bolster Goldman Sachs' presence in the construction technology market, aligning with the firm's broader investment strategy.
Source: Bloomberg
Blackstone Considers $4 Billion Sale of Liftoff
Blackstone is exploring strategic options for Liftoff, a mobile app marketing provider, including a potential sale valued at over $4 billion. The company is collaborating with investment banks Goldman Sachs and Jefferies to evaluate alternatives, such as an initial public offering (IPO). Liftoff, formed through the merger of Vungle and Liftoff, generates approximately $650 million in annual revenue and has clients like Amazon, PayPal, and Lyft. Blackstone aims for a valuation exceeding 10 times Liftoff's earnings before interest, tax, depreciation, and amortization of $350 million. These discussions are in the early stages, and no final decisions have been made.
Source: Reuters
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: B, Increasing the Discount Rate from 9% to 10% because it reduces the present value of all future cash flows — Would increasing the revenue growth from 9% to 10% or increasing the Discount Rate from 9% to 10% make a bigger impact on a DCF?
Explanation: Increasing the discount rate from 9% to 10% generally has a more substantial negative impact on a DCF valuation than increasing the revenue growth rate from 9% to 10%. This is because a higher discount rate reduces the present value of all future cash flows, reflecting a higher perceived risk or cost of capital. Conversely, while increasing the revenue growth rate does boost future cash flows, this positive effect can be offset by the higher discounting, especially in later years when the impact of compounding is more significant. Thus, the increase in the discount rate typically results in a greater overall reduction in valuation compared to a similar increase in the growth rate.