- First Step to Final Offer
- Posts
- First Step to Final Offer 10/29/24
First Step to Final Offer 10/29/24
Brooks Gammill
October 29, 2024
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 Partners Upcoming Event List
Ardea Partners (Early Insight Programs) :
Thursday, November 21st @ 3pm–5pm EST, Ardea Partners | Diversity Insight Day Link
Application Deadline: October 31st
Guggenheim (Early Insight Program):
Sunday, November 13 @ 5:30pm–7:30pm EST, Guggenheim Securities Investment Banking Diversity & Inclusion Panel Link
Application Deadline: November 6th
Evercore:
Tuesday, October 29 @ 1:30–3:30pm PST, 2024 Evercore Menlo Park Healthcare Virtual Sophomore Open House Link
Tuesday, October 29 @ 12:00–1:00pm EST, Evercore Private Capital Markets Virtual Sophomore Open House Link
Tuesday, October 29 @ 5:00–6:00pm EST, Evercore Equity Capital Markets Virtual Sophomore Open House Link
RecruitU Investment Banking Prep Series Overview
Every Monday and Wednesday, RecruitU Mentors from Evercore, Morgan Stanley, Guggenheim, and JPM will be presenting on their experiences in banking and answering questions. Please RSVP below:
October 30th @ 7pm EST, Lesson 6: Accounting Link
November 4th @ 7pm EST, Lesson 7: Accounting Link
November 6th @ 7pm EST, Lesson 8: Net Working Capital Link
November 11th EST @ 7pm EST, Lesson 9: Capital Structure, EV and EQV Link
November 13th @ 7pm EST, Lesson 10: Valuation Link
November 18th @ 7pm EST, Lesson 11: DCF Link
November 20th @ 7pm EST, Lesson 12: DCF Link
November 25th @ 7pm EST, Lesson 13: M&A Link
November 27th @ 7pm EST, Lesson 14: M&A Link
December 2nd @ 7pm EST, Lesson 15: LBO Link
December 4th @ 7pm EST, Lesson 16: LBO Link
December 9th @ 7pm EST, Lesson 17: Market Awareness Link
Class of 2027 Opportunities
Lincoln International (NEW) 2026 Summer Analyst Intern (M&A) Link
Lincoln International (NEW) 2026 Summer Analyst Intern (CAG) Link
Lincoln International (NEW) 2025 Sophomore Job Shadow Program Link
Lincoln International (NEW) 2026 Summer Analyst Intern (PFA) Link
Jefferies (NEW) Charlotte Investment Banking Diversity Insight Day Link
The Raine Group LLC 2026 Summer Analyst (New York) Link
William Blair Investment Banking Summer Analyst, Private Capital Advisory, Summer 2026 Program Link
William Blair Investment Banking Summer Analyst, Financial Sponsors Group, Summer 2026 Link
William Blair Investment Banking Summer Analyst, Leveraged Finance, Summer 2026 Program Link
William Blair Investment Banking Summer Analyst, Equity Capital Markets, Summer 2026 Program Link
William Blair Investment Banking Summer Analyst, Life Sciences, Summer 2026 Program Link
Moelis & Company 2025 Leadership Development Program - Houston Link
Moelis & Company 2025 Leadership Development Program - Los Angeles Link
Moelis & Company 2025 Leadership Development Program - New York Link
Moelis & Company 2025 Leadership Development Program - San Francisco Link
Moelis & Company 2025 Leadership Development Program - Chicago Link
Moelis & Company 2025 Leadership Development Program - Boston Link
Point 72 2025 Summer Internship - Private Investments Link
RBC Capital Markets 2026 Capital Markets, Global Markets Sales & Trading Summer Analyst Link
RBC Capital Markets 2026 Capital Markets, Global Investment Banking Summer Analyst Link
Insight Partners 2026 Summer Investment Analyst Overview Link
Goldman Sachs Possibilities Summits Link
Deloitte Discovery Intern (Sophomore) Consulting (Government & Public Services) - Summer 2025 Link
Class of 2026 Opportunities
TECHNICAL QUESTION OF THE WEEK:
If a company operates in the EU, U.S., and U.K., what should you use for its Risk-Free Rate? |
|
MARKET NEWS
Earnings Reports Heighten Volatility in US Stock Market
Recent earnings announcements from various companies have significantly contributed to the volatility seen in the US stock market. Investors are reacting to a mix of high valuations and an uncertain economic outlook, leading to pronounced fluctuations in share prices. As companies report their financial results, the market's sensitivity to these updates has increased, underscoring the cautious sentiment among traders. The combination of these factors is creating a challenging environment for investors as they navigate the current market dynamics.
Source: Bloomberg
Tepid Investment Climate Amid Election and Geopolitical Uncertainty
Bank executives have reported a cautious investment environment as uncertainty surrounding the upcoming U.S. elections and ongoing geopolitical conflicts in Ukraine and the Middle East weighs on investor sentiment. Many businesses are postponing significant financial decisions, preferring to wait for clearer policies post-election. Despite these challenges, some bankers anticipate a rebound in investment activity once the electoral outcome is settled, particularly as economic clarity emerges.
Source: Reuters
BlackRock Opposes Proposed US Bank Ownership Limits
BlackRock is leading the opposition against new U.S. regulations that would restrict the influence of large asset managers over banks. The Federal Deposit Insurance Corporation (FDIC) has proposed rules requiring firms like BlackRock and Vanguard to adhere to stricter limits on their bank ownership and disclose their interactions with bank executives. BlackRock argues that these changes would hinder investment opportunities and make capital-raising more challenging for banks, potentially disrupting the financial market.
Source: Financial Times
Wells Fargo Anticipates $2-3 Billion Loss in Commercial Real Estate Loans
Wells Fargo's CEO, Charlie Scharf, has warned that the bank may incur losses ranging from $2 billion to $3 billion on its commercial real estate office loan portfolio. He stated that provisions have already been made for these potential losses, expected to unfold over the next few years. This scenario underscores the ongoing challenges facing the commercial real estate market, characterized by declining property values and rising defaults.
Source: Reuters
M&A DEAL OVERVIEW
EQT Negotiates $3.5 Billion Pipeline Stake Sale to Blackstone
EQT is in talks with Blackstone to sell minority interests in its interstate natural gas pipelines for around $3.5 billion. This move is part of EQT's strategy to reduce the debt from its recent acquisition of Equitrans Midstream. If the negotiations are successful, the deal is expected to be finalized in the upcoming weeks, with Blackstone looking to invest through its credit and insurance division.
Source: Seeking Alpha
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer (It is typically higher than the Cost of Debt and lower than the Cost of Equity) — How does the Cost of Preferred Stock compare with the Cost of Debt and the Cost of Equity?
Explanation: The cost of preferred stock is typically higher than the cost of debt but lower than the cost of equity. This reflects its position in the capital structure: preferred stockholders have a higher claim on assets than common equity holders but are subordinate to debt holders, making it a less risky investment than equity while still riskier than debt.