- First Step to Final Offer
- Posts
- First Step to Final Offer 1/8/25
First Step to Final Offer 1/8/25
Brooks Gammill
January 08, 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
RecruitU partners are companies that are actively using RecruitU to find students for their full-time and internship roles.
Class of 2027 Investment Banking Opportunities
Nomura Securities 2026 Investment Banking Summer Analyst Program (Multiple Locations) - Link
Solomon Partners 2025 Sophomore Summit Program Link
Moelis & Companyy 2026 Summer Analyst, Investment Banking Link
Piper Sandler 2026 Investment Banking Summer Analyst Link
Wells Fargo 2026 Summer Internship, Early Careers – Markets Link
PJT 2026 Summer Analyst - Strategic Advisory Link
Brown Gibbons Lang & Company 2026 Investment Banking Summer Analyst Link
JPMorgan Chase & Co. 2026 Commercial & Investment Bank Insights Programs - Summer Analyst Program Link
Goldman Sachs 2026 Investment Banking Summer Analyst Programs Link
Leerink Partners 2026 Investment Banking Summer Analyst Program 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:
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? |
MARKET NEWS
Goldman Sachs Reveals Hedge Funds’ Best Stock-Picking Returns Since 2020
In 2024, global hedge funds focusing on stock picking achieved their highest average returns since 2020, with a total weighted average return of 12.75%. This performance, while notable, did not surpass benchmark indices like the S&P 500, which surged over 20% in the same year. Hedge funds employ strategies that involve both long and short positions on stocks, aiming to capitalize on market volatility. Interestingly, short positions began underperforming from July onwards. Systematic funds, which rely on algorithms and market signals, posted approximately 20% returns, their best since 2022. The year highlighted innovative shorting strategies and effective use of leverage, according to Jon Caplis of PivotalPath.
Source: Reuters
Citadel, Millennium, and D.E. Shaw Achieve Double-Digit Returns in 2024
In 2024, several prominent hedge funds reported impressive double-digit returns. Citadel's flagship fund, Wellington, posted a 15.1% gain, while Millennium Management achieved a 15% return. D.E. Shaw's Composite fund rose by 18%, and its Oculus fund delivered a record 36% return. These performances highlight the resilience and strategic acumen of these firms amid market volatility.
Source: Reuters
M&A DEAL OVERVIEW
Alibaba to Sell Sun Art to DCP Capital for $1.6 Billion
Alibaba Group has agreed to sell its 78.7% stake in Sun Art Retail Group, China's largest hypermarket chain, to private equity firm DCP Capital for HK$12.298 billion (approximately $1.58 billion). This divestment aligns with Alibaba's strategy to refocus on its core e-commerce operations. The sale is expected to result in a loss of approximately $1.8 billion for Alibaba shareholders.
Source: Bloomberg
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: D, The company's discount rate and terminal value — Which assumptions make the biggest impact on a DCF?
Explanation: The company’s discount rate and terminal value are the most impactful assumptions in a discounted cash flow (DCF) analysis because they significantly influence the present value of future cash flows. The discount rate, typically based on the weighted average cost of capital (WACC), determines how future cash flows are valued in today’s terms, with small changes in the rate causing large swings in valuation. The terminal value, which represents the bulk of a company's valuation in many DCF models, depends on assumptions like long-term growth rates or exit multiples. As these inputs account for the majority of a DCF’s outcome, even minor adjustments can lead to significant variations in the valuation.