- First Step to Final Offer
- Posts
- First Step to Final Offer 2/17/26
First Step to Final Offer 2/17/26
Brooks Gammill
February 17, 2026
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 2028 Finance and Consulting Opportunities
Guggenheim Partners 2027 Guggenheim Securities Investment Banking Summer Analyst – New York Private Capital Markets Link
Citi Banking - US, 2027 Summer Analyst - Multiple Roles and Locations Link
BNP Paribas 2027 – Summer Analyst Internship - Multiple Roles, Industries, and Locations Link
Starwood Capital Group 2027 Summer Analyst - Multiple Roles, Industries, and Locations Link
Apogem Capital 2027 Apogem Investments - Private Equity Summer Internship Program Link
KeyBank 2027 Summer Analyst - Multiple Roles, Industries, and Locations Link
To see c/o 2028 opportunities, click here: Class of 2028 Application Tracker
Class of 2027 Finance and Consulting Opportunities
Berkeley Research Group, LLC Summer Associate 2026 - Corporate Finance - Transaction Advisory Link
Verition Fund Management Summer 2026 Internship (NYC) - Multiple Roles Link
UBS 2026 Summer Internship - Wealth Management Operations - Nashville Link
KPMG Intern, Summer 2026 - Multiple Roles and Locations Link
Capstone Summer 2026 Risk Internship Link
West Monroe 2026 Data & Analytics Consulting Intern Link
To see c/o 2027 opportunities, click here: Class of 2027 Application Tracker
Class of 2026 Consulting Opportunities
TECHNICAL QUESTION OF THE WEEK:
Which valuation model would most likely yield the highest valuation? |
MARKET NEWS
Wall Street CEOs Earn $40M+ as Bank Profits Hit Post-Pandemic Highs
Chief executives at the largest US banks each received at least $40 million in annual compensation, pushing total pay beyond records set in 2006 and 2021. Goldman Sachs CEO David Solomon earned $47 million, up 21% from the prior year, while Bank of America’s Brian Moynihan and Citigroup’s Jane Fraser saw their pay rise to $41 million and $42 million, respectively. The payouts follow a banner year for the industry, with top banks posting their strongest earnings since 2021 and boosting banker bonus pools by at least 10% amid a revival in dealmaking and trading activity.
Source: Bloomberg
Citadel’s Sticky Pay Structure Cuts Into $5.3 Billion in Net Gains
Employee compensation at Ken Griffin’s Citadel remained largely unchanged last year even as returns declined, contributing to a drop in profitability. Operating costs across its three flagship multistrategy funds rose 4% to nearly $4.5 billion, while net investment gains fell 14% to $11.1 billion. The combination drove a 22% decline in net income to $5.3 billion, underscoring how high fixed compensation and rising expenses weighed on overall performance despite continued positive returns.
Source: Bloomberg
M&A DEAL OVERVIEW
Warner Bros Advances Strategic Options as Paramount Invited to Submit Final Offer
Warner Bros Discovery has reopened discussions with Paramount Skydance and given it until 23 February to present an improved final proposal that could potentially enhance shareholder value beyond its existing merger agreement with Netflix. While reaffirming its commitment to the Netflix deal, the board secured a waiver allowing it to evaluate a rival bid if it proves superior. Paramount has indicated it is willing to raise its $30-per-share offer, assume the $2.8 billion breakup fee tied to Netflix, and provide additional financial backing. The current $82.7 billion Netflix agreement would see the streamer acquire Warner Bros’ studio and HBO assets, with WBD’s global networks business spun off into a separate company.
Source: The Guardian
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: C, Levered beta, cost of debt, FCF — What are the 3 places in a DCF where taxes make a DIRECT impact?
Explanation: Taxes make a direct impact in three key areas of a DCF: free cash flow, levered beta, and the cost of debt. First, taxes directly reduce operating income when calculating unlevered free cash flow, since EBIT is multiplied by (1 – tax rate). Second, taxes affect the cost of debt through the tax shield, as interest is tax-deductible, so the after-tax cost of debt is calculated as interest rate × (1 – tax rate), which feeds into WACC. Third, taxes influence levered beta in the capital structure adjustment formula, where beta is relevered using a term that includes (1 – tax rate), reflecting the tax benefit of debt.