- First Step to Final Offer
- Posts
- First Step to Final Offer 6/10/25
First Step to Final Offer 6/10/25
Brooks Gammill
June 10, 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 2026 Finance and Consulting Opportunities
Class of 2027 Finance Opportunities
To see c/o 2027 opportunities, click here: Class of 2027 Application Tracker
Class of 2027 Consulting Opportunities
TECHNICAL QUESTION OF THE WEEK:
Would you rather buy a company trading at a 10x TEV / EBITDA multiple, or one trading at a 5x multiple? |
|
MARKET NEWS
Ken Moelis Announces Leadership Transition at Moelis & Co.
Ken Moelis, founder and CEO of Moelis & Co., announced plans to step down from his leadership position effective October 1, 2025. He will assume the role of executive chair, while longtime partner and co-founder Navid Mahmoodzadegan, currently co-president, will take over as CEO. Co-founder and co-president Jeff Raich will become executive vice chair. This transition marks a significant milestone for the boutique investment bank, which has been led solely by Moelis since its founding in 2007. Moelis, a veteran dealmaker with over four decades of experience, expressed confidence in a smooth leadership change, emphasizing opportunities for internal growth. Mahmoodzadegan, a Harvard-trained lawyer and former global head of media investment banking at UBS, is well-positioned to lead the firm into its next chapter. Moelis & Co. remains distinct within the financial services industry as a pure-play advisory investment bank, focusing solely on providing financial advice rather than engaging in lending or trading.
Source: Reuters
Barclays to Cut Over 200 Investment Banking Jobs in Cost-Cutting Move
Barclays PLC is set to reduce its investment banking workforce by approximately 3%, or more than 200 employees, as part of CEO C.S. Venkatakrishnan's strategy to boost profitability. The cuts will impact various roles, including managing directors, across global markets, research, and investment banking divisions. This move is aimed at refocusing efforts on high-priority areas such as equity capital markets, mergers and acquisitions, and trading in European rates and equity derivatives. Barclays hopes these changes will contribute an additional £500 million in revenue by 2026. Despite the job reductions, the bank remains committed to its transatlantic model and continues to streamline operations for better efficiency.
Source: Yahoo Finance
M&A DEAL OVERVIEW
Inflexion Sells Majority Stake in Medik8 to L'Oréal
Inflexion, the UK-based private equity firm, has agreed to sell a majority stake in the British skincare brand Medik8 to L'Oréal, marking a significant step in the skincare giant's expansion into the dermatological market. Valued at around 1 billion euros, the deal strengthens L'Oréal’s luxury portfolio with Medik8's premium, science-backed skincare products. Inflexion will maintain a minority stake in the company, while L'Oréal secures the option to fully acquire the remaining shares in the future.
Source: Reuters
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: C, The company you are valuing has higher growth prospects or lower risk compared to its peers. — You’re valuing a mid-sized manufacturing company. This company’s TEV / EBITDA multiple is 15x, and the median TEV / EBITDA for the comparable companies is 10x. What’s the most likely explanation?
Explanation: The company's higher TEV/EBITDA multiple (15x compared to peers' median of 10x) indicates investors believe it has better growth prospects or lower risk than its peers. Simply put, the market expects this particular business to grow faster, achieve higher profitability, or operate with less risk, which justifies a higher valuation multiple compared to similar companies.