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- First Step to Final Offer 7/29/25
First Step to Final Offer 7/29/25
Brooks Gammill
July 29, 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 Opportunities
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Class of 2026 Finance and Consulting Opportunities
Class of 2027 Finance and Consulting Opportunities
Guggenheim Partners 2026 Guggenheim Securities Investment Banking Summer Analyst – Los Angeles Aerospace & Defense Link
Deloitte - Business Strategy Summer Scholar (Summer 2026) Link
Baird Internship – Public Finance (Denver, CO Summer 2026) Link
Bank of America Global Quantitative Data Analytics Summer 2026 Analyst - Chief Financial Officer Group Link
To see c/o 2027 opportunities, click here: Class of 2027 Application Tracker
TECHNICAL QUESTION OF THE WEEK:
A private equity firm acquires a $200 EBITDA company for an 8x EBITDA multiple using 50% Debt. It wants to sell the company in 3 years, but it’s difficult to find buyers, so the firm decides to take the company public instead.If this company’s EBITDA increases to $240, it repays ALL the Debt over 3 years, and the PE firm takes it public and sells off its stake evenly in Years 3 – 5 at a 10x EBITDA multiple, what’s the approximate IRR? |
MARKET NEWS
Carlyle Appoints Three Executives to New Co-President Role
Carlyle has named three senior executives to the newly created role of co-president, as part of a broader leadership reshuffle. The appointments aim to strengthen the firm’s operational oversight and position it for future growth. The move follows earlier changes in Carlyle’s executive ranks and comes as the firm navigates a competitive private equity landscape.
Source: Reuters
Hedge Funds Pull Back from Tech, Pour into Consumer Staples
Hedge funds dumped technology stocks at the fastest pace in 12 months during the week ending July 28, according to Goldman Sachs — even as the S&P 500 hit record highs and the Nasdaq climbed roughly 38% from its 2025 low. Rather than increasing short bets, firms largely unwound long positions in semiconductors, software, and IT services across North America and Europe. At the same time, they ramped up bullish exposure to consumer staples — including food, beverages, and personal care names — marking the fourth consecutive week of net buys in the sector.
Source: Reuters
M&A DEAL OVERVIEW
Nordic Capital and Permira Make $3 Billion Bid for Bavarian Nordic
A consortium led by Nordic Capital and Permira has tabled an all-cash takeover proposal for Danish vaccine specialist Bavarian Nordic, offering 233 Danish crowns per share—a 21% premium to the stock’s closing price the prior week—valuing the firm at approximately 19 billion crowns (about $3 billion). Shares of Bavarian Nordic, known for its mpox and smallpox vaccines, jumped 21% following confirmation of takeover talks and traded 2% higher when the offer was announced. The company’s board has endorsed the deal, but acceptance requires more than 90% shareholder approval. Danish pension fund ATP, which holds around 10%, has already signaled its opposition, arguing the offer undervalues the company’s potential. The consortium plans to delist the firm post-completion, expected in Q4 2025.
Source: Reuters
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer: B, Dilutive. — Company A has a P / E of 10x, a Debt Interest Rate of 8%, a Cash Interest Rate of 4%, and a Tax Rate of 25%. It wants to acquire Company B at a purchase P / E multiple of 16x using 1/3 Stock, 1/3 Debt, and 1/3 Cash. Will the deal be accretive, dilutive, or neither?
Explanation: The deal is dilutive because Company A is acquiring Company B at a higher P/E multiple (16x) than its own (10x), which means it's paying more for each dollar of earnings than its own valuation. Even though part of the deal is funded with debt and cash—which can sometimes help offset dilution—the high purchase multiple outweighs these benefits. The weighted cost of financing (especially the relatively expensive equity and debt) doesn’t generate enough earnings accretion to justify the premium. As a result, the overall impact lowers the combined company’s earnings per share (EPS), making the deal dilutive.