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- First Step to Final Offer 11/26/24
First Step to Final Offer 11/26/24
Brooks Gammill
November 27, 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
Class of 2027 Opportunities
Audax Group Summer Analyst, Private Debt Origination (2025) Link
Union Square Advisors Investment Banking 2026 Summer Analyst Link
Houlihan Lokey SA 2026 Investment Banking Analyst (Multiple Roles) Link
Rothschild & Co US 2026 Global Advisory Summer Analyst Link
GTCR 2026 Private Equity Summer Analyst Link
Houlihan Lokey Women in Financial and Valuation Advisory Insight Day Link
Houlihan Lokey 2025 Women in Financial Restructuring Insight Day Link
Perella Weinberg Partners 2025 U.S. Perella Weinberg Advisory Prep Program Link
RBC Capital Markets 2026 Capital Markets, Global Investment Banking Summer Analyst Link
The Raine Group LLC 2025 Growing Diverse Leaders Program Link
Lincoln International 2026 Summer Analyst Intern (M&A) Link
Lincoln International 2026 Summer Analyst Intern (CAG) Link
Lincoln International 2025 Sophomore Job Shadow Program Link
Lincoln International 2026 Summer Analyst Intern (PFA) Link
Class of 2026 Opportunities
TECHNICAL QUESTION OF THE WEEK:
If you use the Multiples Method to calculate Terminal Value, do you use the multiples from the Public Comps or Precedent Transactions? |
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MARKET NEWS
Citigroup Cuts Promotions as Part of Effort to Overhaul Bank Operations
Citigroup has announced a significant reduction in its promotion rates, aiming to overhaul its banking operations. This strategic move is part of the company's broader efforts to streamline its workforce and enhance operational efficiency. The decision reflects Citigroup's commitment to adapting to evolving market conditions and optimizing its organizational structure. By implementing these changes, Citigroup seeks to position itself more effectively in the competitive financial sector.
Source: Reuters
Blackstone Invests Over €500 Million in Southern European Hotels
Blackstone has continued its expansion into Southern Europe's hotel market, investing more than €500 million in the past year. The latest acquisition sees the real estate giant purchasing the Grand Hyatt Athens for €235 million from Henderson Park and Hines. This deal increases Blackstone's hotel investments across Greece, Spain, Italy, and Portugal. The company’s European real estate head, James Seppala, highlighted the region’s growing tourism and longer summer seasons as key drivers of strong investment potential. Southern Europe’s hotel sector has seen increased demand, with rising room rates and a post-pandemic surge in travel. Despite challenges like extreme weather, which has affected tourism, the region’s “shoulder seasons” are benefiting from extended bookings. Blackstone now owns about 22,000 hotel rooms across more than 70 properties in the region, with future M&A activity expected as investors target underdeveloped areas.
Source: Financial Times
Goldman Sachs to Write Off Nearly $900 Million After Northvolt Bankruptcy
Goldman Sachs is set to write off almost $900 million in investments after Swedish battery maker Northvolt filed for Chapter 11 bankruptcy. The write-off follows a dramatic shift in fortunes for Northvolt, which had previously raised $15 billion from investors, including Goldman and Volkswagen, to fuel its ambitious expansion. Goldman’s private equity funds had at least $896 million invested in the company, making it Northvolt’s second-largest shareholder. Despite initial optimism about Northvolt’s prospects, the company, which had been one of Europe’s best-funded start-ups, ran into financial distress and now faces more than $5.8 billion in debt. Goldman, which initially supported Northvolt with a $1 billion funding round in 2019, has been working on restructuring efforts in recent months but ultimately failed to secure a viable solution. The bankruptcy could have broader implications for the green energy sector, with some investors expressing concerns about future support for the green transition.
Source: Financial Times
M&A DEAL OVERVIEW
EQT and Blackstone Form Joint Venture to Acquire U.S. Natural Gas Pipelines
EQT and Blackstone have announced the formation of a joint venture to acquire and operate U.S. natural gas pipelines, including the Mountain Valley Pipeline. EQT will contribute its existing pipeline assets, while Blackstone will invest $3.5 billion to acquire a minority stake. This partnership aims to enhance the infrastructure's capacity and efficiency, supporting the growing demand for natural gas in the U.S. The deal is expected to close in the first quarter of 2025, pending regulatory approvals.
Source: Reuters
EQT Sells Broadband Firm Melita to Goldman Sachs Unit for €750 Million
EQT has agreed to sell Melita, a leading broadband and 5G mobile service provider, to a unit of Goldman Sachs for approximately €750 million. EQT originally acquired Melita in 2019 and has since invested in expanding its services. The sale reflects EQT's strategy to exit from certain investments as part of its portfolio reshaping. Melita, based in Malta, has a significant presence in broadband and mobile markets, serving both consumers and businesses. Goldman Sachs plans to further grow the company’s footprint in the competitive telecom sector, capitalizing on the ongoing demand for high-speed internet and mobile services across Europe. The deal is expected to be finalized in the coming months.
Source: Bloomberg
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: D, The explicit forecast period includes detailed year-by-year projections, while the Terminal Period represents the value of all future cash flows beyond the forecast period — What is the difference between the explicit forecast period and the Terminal Period in a DCF?
Explanation: The explicit forecast period in a Discounted Cash Flow (DCF) analysis is the timeframe during which detailed, year-by-year financial projections are made based on expected performance. It typically spans a few years and includes specific assumptions for revenue, expenses, and cash flows. In contrast, the Terminal Period represents the value of all future cash flows beyond the explicit forecast period, calculated using a terminal value. This terminal value assumes the business will continue operating indefinitely, often using either a perpetuity growth method or an exit multiple, to estimate long-term sustainability.