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- First Step to Final Offer 3/11/25
First Step to Final Offer 3/11/25
Brooks Gammill
March 12, 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
Warburg Pincus 2026 US Analyst Program (full-time) Link
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 2026 Investment Banking Opportunities
Class of 2027 Investment Banking Opportunities
Harris Williams 2026 M&A Summer Analyst Link
Class of 2027 Other Finance Opportunities
UBS 2026 Summer Internship - Multiple Positions and Locations Link
Class of 2027 Consulting Opportunities
McKinsey McKinsey's HBCU Consulting League Link
Boston Consulting Group (BCG) Bridge to Consulting, Sophomores – Associate, Internship, United States Link
Boston Consulting Group (BCG) Bridge to Consulting, Freshmen – Associate, Internship, United States Link
Protiviti Technology Consulting Intern - 2026 - Multiple Locations Link
To see c/o 2027 opportunities, click here: Class of 2027 Application Tracker
TECHNICAL QUESTION OF THE WEEK:
PE firm invests $50 in a leveraged buyout in Year 0 and takes the company public in Year 3. It sells 1/3 of its stake each year in Years 3 – 5, and its total stake is worth $100 in Year 3. Assume no changes in the value of the stake and estimate the IRR. |
MARKET NEWS
U.S. Equity Funds Face Significant Outflows Amid Tech Selloff and Trade War Fears
U.S. equity funds experienced their largest weekly outflows in four weeks, totaling $9.54 billion, driven by a selloff in the technology sector and growing concerns over a potential trade war. This followed the imposition of steep tariffs by President Trump on imports from China, Mexico, and Canada. Small-cap and mid-cap funds saw the most significant withdrawals, while large-cap funds attracted inflows. Sectoral funds, particularly in technology and industrials, faced heavy selling, while safer assets like money market and bond funds saw increased demand.
Source: Reuters
Junior Bankers Worry AI Could Hinder Skill Development Despite Cutting Grunt Work
While Wall Street firms increasingly adopt AI to eliminate tedious tasks, junior bankers are expressing concern that these advancements might hinder their professional growth. Many analysts argue that the grunt work they traditionally perform, such as financial modeling and assembling reports, is not only a rite of passage but also essential for learning the industry’s fundamentals. Despite AI tools reducing workloads, junior bankers fear that skipping these foundational tasks could undermine their ability to develop the critical skills needed for client interactions and more strategic roles. The debate highlights a tension between technology's ability to streamline operations and the belief that hands-on experience remains crucial for career development.
Source: Bloomberg
M&A DEAL OVERVIEW
Veritas Plans Merger Between Cambium and Houghton Mifflin Harcourt
Veritas Capital is reportedly working on a merger between Cambium Learning Group and Houghton Mifflin Harcourt (HMH), two of its education-focused portfolio companies. The private equity firm acquired Cambium in 2018 and HMH in 2022. While discussions are still in progress and no final decision has been made, the merger is one of several strategic options being explored. Cambium serves over 29 million students, while HMH, which publishes educational materials, reaches 50 million students globally. Both companies focus on K-12 education, and the merger could reshape the educational landscape.
Source: Yahoo Finance
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: A, $400 — The 3-year IRR in an LBO is 35%, and the Exit Equity Proceeds are $1,000. What is the initial Investor Equity?
Explanation: To find the initial Investor Equity in the LBO, we use the formula for IRR:
Given that the IRR is 35%, the Exit Equity Proceeds are $1,000, and the investment period is 3 years, we rearrange the formula to solve for the Initial Investor Equity. After calculation, the initial equity comes out to approximately $400, which is the answer.