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- First Step to Final Offer 10/8/24
First Step to Final Offer 10/8/24
Brooks Gammill
October 09, 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
Carlyle Webinar (Tomorrow!)
Join us for an exclusive fireside chat featuring Sandra Horbach and Fred Crawford. This intimate conversation will cover insights into the world of private equity and provide invaluable advice for students and young professionals. Sandra and Fred will discuss their unique career journeys, emerging trends in recruitment, the growing impact of AI, and the essential role of diversity in shaping the future of private equity.
RecruitU Event Series
Join RecruitU Experts for a webinar series designed to educate and prepare sophomores for summer internship recruiting. Run by Former Head of Evercore Recruiting and Former Employer Partnerships at Colby and Bowdoin College.
October 21 @ 5 pm ET: Preparing for Investment Banking Interviews, Part II Link
Evercore Event Series (RecruitU Partner) (NEW)
Class of 2027
RBC Capital Markets (NEW) 2026 Capital Markets, Global Markets Sales & Trading Summer Analyst Link
RBC Capital Markets 2026 Capital Markets, Global Investment Banking Summer Analyst Link
Houlihan Lokey 2024 Investment Banking Women's Insight Day Link
Blackstone 2024 Blackstone US Future Women Leaders Program Link
Insight Partners 2026 Summer Investment Analyst Overview Link
KKR 2026 Summer Analyst Program Recruiting Process Overview Link
Societe Generale 2025 Sophomore Investment Banking Program Link
Bank of America Global Markets Sales & Trading Rotational Sophomore Summer Analyst Program – 2025 Link
Goldman Sachs Possibilities Summits Link
Deloitte Consulting Discovery Sophomore Intern Summer 2025 Link
Deloitte Discovery Intern (Sophomore) Consulting (Government & Public Services) - Summer 2025 Link
RBC Capital Markets U.S. Pathways Diversity Award Program Link
RBC Capital Markets U.S. Women’s Advisory Program Link
RBC Capital Markets LGBTQ+ Sophomore Insights Program Link
Goldman Sachs Emerging Leaders Series - Link
Morgan Stanley Summer 2025 Applications - Link
Class of 2026
Jefferies (NEW) 2025 Jefferies Finance Summer Analyst Program - New York, Data Analytics Link
Apollo Global Management (NEW) 2025 Summer Analyst, Apollo Capital Solutions Link
Morgan Stanley 2025 Investment Management Summer Analyst Program - Fixed Income High Yield (Boston) Link
StepStone Group 2025 Private Equity Summer Analyst Link
Susquehanna International Group, LLP (SIG) Quantitative Trader Internship: Summer 2025 Link
Bracebridge Capital 2025 Summer Investment Analyst Link
Blackstone 2025 Real Estate Finance Summer Analyst Link
BNY 2025 Summer Internship Programs Link
Deutsche Bank Internship Program Investment Bank: Commercial Real Estate - New York - 2025 Link
MUFG 2025 Corporate, Investment Banking and Markets (CIBM) Summer Analyst Program - Link
Deutsche Bank Internship Program - Investment Bank: Origination and Advisory Capital Markets - New York 2025 - Link
Deutsche Bank Internship Program - Investment Bank: Origination and Advisory - San Francisco 2025 - Link
Lazard 2025 Institutional Client Group Summer Internship - Link
Baird, Equity Research Analyst Summer 2025 - Link
BCG Associate Internship - Link
Bain & Company Associate Consultant Intern - Link
Nomura Summer 2025 Analyst Roles - Link
Citadel Securities Trading Fundamental Analyst - Link
Loop Capital Summer 2025 Analyst Positions - Link
Stifel Financial Corp Summer 2025 Analyst Roles - Link
Citi Summer Summer 2025 Analyst Roles - Link
StepStone Group Summer 2025 PE Analyst - Link
Guggenheim Summer 2025 Applications - Link
Oppenheimer Summer 2025 Applications - Link
Abdiel Capital Summer 2025 Application - Link
Long Ridge Summer 2025 Application - Link
D.E. Shaw Summer 2025 Application - Link
Point72 Summer 2025 Application- Link
TECHNICAL QUESTION OF THE WEEK:
Aproximately, how much of a company’s value is made up of terminal value in practice? |
MARKET NEWS
U.S. Economy Adds 254,000 Jobs in September, Surpassing Expectations
The U.S. economy added 254,000 jobs in September, far exceeding the expected 150,000 and signaling continued labor market strength. The unemployment rate fell to 4.1%, while wage growth also accelerated, with average hourly earnings rising by 0.4% for the month and 4% year-over-year. Upward revisions to July and August’s job numbers, alongside strong gains in sectors like hospitality and healthcare, ease concerns about the labor market’s health. The report likely solidifies expectations for the Federal Reserve to adopt a slower pace of interest rate cuts in the coming months.
Source: CNBC
JPMorgan Sees IPO Market Opening for PE-Backed Companies
JPMorgan reports that the IPO market for private equity-backed companies is gaining momentum, with at least four U.S. listings slated for October, including StandardAero Inc., which raised $1.44 billion in its IPO. This surge in activity offers hope to investors holding $3.2 trillion in companies tied up in private equity portfolios after a difficult three-year stretch. Despite the uptick, annual IPO proceeds are still expected to be 20% to 25% below typical levels as the market continues to recover.
Source: Bloomberg
S&P’s $8 Trillion Rally Faces Test in Upcoming Earnings Season
The S&P 500’s remarkable $8 trillion rally in 2024, driven by expectations of easing monetary policy and resilient profits, will be tested as third-quarter earnings season begins. Analysts have cut profit growth estimates for S&P firms to 4.7%, and the market faces risks from economic uncertainty, Federal Reserve decisions, and the looming U.S. election. As corporate results come into focus, investors are watching closely to see if equities can maintain their upward trajectory amid these challenges.
Source: Bloomberg
M&A DEAL OVERVIEW
Apollo to Acquire Barnes Group in $3.6 Billion Deal
Apollo Funds will acquire aerospace parts maker Barnes Group in a $3.6 billion deal, offering $47.50 per share in cash, representing a 5% premium to the last close. The acquisition, expected to close in early 2025, follows Apollo’s strategy of expanding into industrial sectors amid growing manufacturing demand. Barnes, which serves industries like healthcare, aerospace, and packaging, has faced pressure from activist investor Irenic Capital to review its strategy. Apollo anticipates Barnes will benefit from long-term aerospace trends driven by rising travel demand.
Source: CNBC
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer (B) — Sum of the Parts (SOTP) valuation
Explanation: Sum of the Parts (SOTP) valuation is the best method for a company with very different divisions because it values each segment separately, using the most appropriate metrics for each business unit. This approach captures the distinct growth rates, risk profiles, and operational differences across divisions. By combining these individual valuations, SOTP provides a more accurate and comprehensive overall value of the company.