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- First Step to Final Offer 2/18/25
First Step to Final Offer 2/18/25
Brooks Gammill
February 19, 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 have recruiters actively using RecruitU to find students for their full-time and internship roles. So if you’re signed up, you have direct visibility with these companies.
Class of 2027 Investment Banking Opportunities
Piper Sandler Campus Recruiting – 2026 Investment Banking Summer Analyst – Secondary Capital Advisory Group – Multiple Positions Link
Guggenheim Partners 2026 Guggenheim Securities Investment Banking Summer Analyst Programs – Multiple Positions and Locations Link
Texas Capital Bank 2026 Summer Investment Banking Analyst (Class of 2027) Link
TD TD Securities 2026 Summer Analyst Program - Investment Banking, Healthcare (Dallas) Link
Shea & Company 2026 Summer Analyst Link
Solomon Partners 2026 Investment Banking Summer Analyst Program – Multiple Positions and Locations Link
Class of 2027 Other Finance Opportunities
Starwood Capital Group 2026 Multifamily Asset Management Summer Analyst Link
Starwood Capital Group 2026 Development Asset Management Summer Analyst Link
Starwood Capital Group 2026 Affordable Housing Asset Management Summer Analyst Link
Starwood Capital Group 2026 Investor Relations Summer Analyst Link
Barings 2026 Investment Management Summer Internship Link
Long Ridge Equity Partners, LLC Growth Equity Summer Analyst (2026) Link
To see c/o 2027 opportunities, click here: Class of 2027 Application Tracker
TECHNICAL QUESTION OF THE WEEK:
Company A acquires Company B using 100% Debt. Company B has a purchase P/E multiple of 12x, and Company A has a P / E multiple of 15x. What interest rate on Debt is required to make the deal dilutive? Assume a tax rate of 25%. |
MARKET NEWS
Goldman Sachs CEO Signals Openness to Asset & Wealth Management Acquisitions
Goldman Sachs CEO David Solomon has indicated that the firm is open to acquisitions in its asset and wealth management division as it looks to expand and diversify revenue streams. Speaking at a conference, Solomon emphasized the bank’s focus on scaling its wealth management business and growing assets under supervision. The move aligns with Goldman’s broader strategy to reduce reliance on volatile trading and investment banking revenues. While no specific deals were mentioned, Solomon highlighted that the firm is prepared to act on opportunities that align with its long-term growth plans.
Source: Reuters
BlackRock Expands Push Into Private Equity Financing
BlackRock is ramping up efforts to become a leading financier in the private equity space, aiming to provide capital to firms struggling with tighter credit conditions. The asset management giant sees an opportunity to leverage its vast resources and credit expertise to offer flexible financing solutions, particularly as traditional banks pull back. This move is part of BlackRock’s broader strategy to deepen its presence in alternative investments and generate higher-margin revenue streams. The firm’s expansion into private equity lending reflects a growing trend of asset managers stepping into roles traditionally dominated by banks.
Source: Bloomberg
Reddit Chat Rooms May Influence Hedge Fund Strategies
Hedge funds are increasingly monitoring Reddit chat rooms as retail investor discussions gain influence over market trends. The rise of meme stocks and coordinated retail trading activity has prompted institutional investors to track sentiment shifts on platforms like r/wallstreetbets. By analyzing discussion patterns, hedge funds aim to anticipate retail-driven volatility and adjust their positions accordingly. This reflects a broader shift in market dynamics, where online communities play a growing role in shaping stock movements and investment strategies.
Source: Bloomberg
M&A DEAL OVERVIEW
General Atlantic Invests in Huda Beauty’s Perfume Business
General Atlantic has acquired a stake in Kayali, the fragrance division of Dubai-based Huda Beauty, as the private equity firm deepens its investment in the luxury and beauty sector. Founded by Mona Kattan, Kayali has gained global recognition for its high-end perfume offerings, capitalizing on the growing demand for niche fragrances. The deal aligns with General Atlantic’s strategy of backing high-growth consumer brands with strong digital and international presence.
Source: Bloomberg
GIP Looks to Sell Stake in Vena Energy at $10 Billion Valuation
Global Infrastructure Partners (GIP) has hired banks to explore the sale of a stake in Vena Energy, a major renewable energy company in the Asia-Pacific region, with a potential valuation of up to $10 billion. The move comes as investor interest in clean energy assets continues to rise, with Vena operating a vast portfolio of solar, wind, and battery storage projects. The stake sale is expected to attract significant interest from institutional investors and sovereign wealth funds.
Source: Reuters
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: D, Both B & C — Why might an Acquirer choose to use Stock or Debt even if it could pay for the Target with Cash?
Explanation: An acquirer might choose to use stock or debt instead of cash to preserve liquidity for future expansion opportunities (option B) and to take advantage of a high trading multiple (option C). By issuing stock, the acquirer can use its potentially overvalued shares as currency, reducing the actual cost of the acquisition. This approach helps conserve cash, which can be used for other strategic investments or operational needs. Thus, both preserving cash and leveraging a high trading multiple make stock or debt financing an attractive alternative to cash payments.