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- First Step to Final Offer 9/24/24
First Step to Final Offer 9/24/24
Brooks Gammill
September 24, 2024
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!
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Class of 2027 Jobs & Events
Insight Partners: 2026 Summer Investment Analyst Overview Link Here
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Deloitte Consulting Discovery Sophomore Intern Summer 2025 Link here
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Bain & Company Event Series Link Here
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Class of 2026
Morgan Stanley 2025 Investment Management Summer Analyst Program - Fixed Income High Yield (Boston) Link here
Goldman Sachs 2025 Internships Link here
StepStone Group 2025 Private Equity Summer Analyst Link here
Susquehanna International Group, LLP (SIG) Quantitative Trader Internship: Summer 2025 Link here
Bracebridge Capital 2025 Summer Investment Analyst Link here
Blackstone 2025 Real Estate Finance Summer Analyst Link here
BNY 2025 Summer Internship Programs Link here
Deutsche Bank Internship Program Investment Bank: Commercial Real Estate - New York - 2025 Link here
MUFG 2025 Corporate, Investment Banking and Markets (CIBM) Summer Analyst Program - Link here
Deutsche Bank Internship Program - Investment Bank: Origination and Advisory Capital Markets - New York 2025 - Link here
Deutsche Bank Internship Program - Investment Bank: Origination and Advisory - San Francisco 2025 - Link here
Lazard 2025 Institutional Client Group Summer Internship - Link Here
Baird, Equity Research Analyst Summer 2025 - Link Here
BCG Associate Internship - Link Here
Bain & Company Associate Consultant Intern - Link Here
Nomura Summer 2025 Analyst Roles - Link Here
Citadel Securities Trading Fundamental Analyst - Link Here
Loop Capital Summer 2025 Analyst Positions - Link Here
Stifel Financial Corp Summer 2025 Analyst Roles - Link Here
Citi Summer Summer 2025 Analyst Roles - Link Here
StepStone Group Summer 2025 PE Analyst - Link Here
Guggenheim Summer 2025 Applications - Link Here
Oppenheimer Summer 2025 Applications - Link Here
Abdiel Capital Summer 2025 Application - Link Here
Long Ridge Summer 2025 Application - Link Here
D.E. Shaw Summer 2025 Application - Link Here
Point72 Summer 2025 Application- Link Here
TECHNICAL QUESTION OF THE WEEK:
MARKET NEWS
Fed Cuts Rates Again in September 2024 to Combat Slowing Growth
The Federal Reserve has cut interest rates again in its September 2024 meeting, citing concerns over a slowing economy. This latest move reflects the Fed's ongoing effort to stimulate growth while navigating persistent inflationary pressures. Chair Jerome Powell emphasized that while inflation remains a concern, the risk of economic stagnation necessitates aggressive rate cuts to support continued economic activity.
Source: CNBC
U.S. Retail Sales Unexpectedly Rise in August, Defying Expectations
In a surprising turn, U.S. retail sales increased in August 2024, defying analysts' expectations of a slowdown. The unexpected rise was driven by strong consumer spending on motor vehicles and dining out, signaling that consumers remain resilient despite higher interest rates and inflationary pressures. This data provides optimism for the economy but complicates the Federal Reserve’s approach to managing inflation.
Source: Reuters
Private Equity Firms Face Pushback on High-Water EBITDA Loan Terms
Private equity firms are pushing to include language in loan agreements that would allow them to extract larger dividends from the companies they own. These provisions, known as high-water EBITDA clauses, enable firms to base borrowing and dividend payouts on a company’s highest earnings over any 12-month period, even if the business’s performance has since declined. Firms like KKR and Brookfield have attempted to include this language in recent deals, facing resistance from lenders who argue the terms are too aggressive. The debate signals tension in the loan market as private equity firms seek greater financial flexibility.
Source: Financial Times
M&A DEAL OVERVIEW
Axel Springer Splits Business in KKR Deal
German media giant Axel Springer is splitting its business into two entities as part of a strategic deal with private equity firm KKR. The company will separate its fast-growing classifieds businesses, including StepStone, from its media brands like Politico and Bild. KKR will control the classifieds division, while CEO Mathias Döpfner takes charge of the media assets. The split aims to unlock value and boost growth for both segments.
Source: CNBC
ADDITIONAL RESOURCES
LAST WEEK TECHNICAL QUESTION OF THE WEEK ANSWER:
Correct Answer $150 - For the deal to be accretive, the combined company's earnings per share (EPS) after the acquisition must increase. To achieve this, $150 in after-tax synergies is needed, which would boost the combined earnings enough to make the deal beneficial for shareholders.