Get a friendly handle on how Wall Street deals really work
Investment banking drives how companies raise money, merge, go public, and reshape entire industries. If you've ever wanted to understand the deal-making behind the headlines, Investment Banking For Dummies is your approachable, jargon-free guide to capital markets, valuation, M&A, IPOs, debt offerings, financial modeling, and regulation. You'll get a practical look at what bankers actually do and why it matters.
Explore how private equity, private credit, fintech, and AI are transforming the way deals get done. You'll wrap your head around modern valuation practices, see how banks compete for advisory business, and discover how shifting regulations and global trends shape the industry. Refreshed case studies and updated digital tools and resources keep everything grounded in real-world practice.
Inside this book:
Learn how M&A transactions, IPOs, and debt offerings move from pitch to close
Discover the role of private equity, private credit, and alternative assets in modern dealmaking
Explore how AI, automation, and fintech are reshaping investment banking workflows and analysis
Get up to speed on current regulatory and compliance shifts affecting global capital markets
Find practical guidance on financial modeling, valuation methods, and common analyst tools
Whether you're a student eyeing a finance career, a career-switcher exploring Wall Street, or simply curious about how capital markets work, this Dummies guide gives you the knowledge you need. Time to get in on the deal!
INTRODUCTION 1
PART 1: GETTING STARTED WITH INVESTMENT BANKING 5
CHAPTER 1: Introducing Investment Banking 7
CHAPTER 2: The Purpose of Investment Banking: What Investment Bankers Do 23
CHAPTER 3: How Investment Bankers Sell Companies 43
CHAPTER 4: How Investment Banking Is Used in Mergers and Acquisitions 61
CHAPTER 5: How Investment Banking Is Used in Leveraged Buyouts 81
PART 2: DIGGING IN: PERFORMING INVESTMENT BANKING 97
CHAPTER 6: Finding the Data: Documents and Reports 99
CHAPTER 7: Making Sense of Financial Statements 117
CHAPTER 8: Perfecting the Financial Ratios for Investment Banking 137
CHAPTER 9: Sizing Up the Industry 155
CHAPTER 10: Understanding Stocks and Focusing on Past Transactions 175
CHAPTER 11: Applying Investment Banking to Fixed Income 191
PART 3: TAKING INVESTMENT BANKING TO THE NEXT LEVEL 211
CHAPTER 12: Doing a Discounted Free Cash Flow Analysis 213
CHAPTER 13: Structuring a Leveraged Buyout 233
CHAPTER 14: Determining the Strength of a Company's Return on Equity 249
PART 4: APPLYING INVESTMENT BANKING 265
CHAPTER 15: Knowing the Rules 267
CHAPTER 16: How Some Companies Lie, Cheat, and Steal Their Way to the Top 283
CHAPTER 17: Understanding Alternative Investments and Asset Management 303
CHAPTER 18: Trying Your Hand at Investment Banking with a Case Study 321
PART 5: THE PART OF TENS 333
CHAPTER 19: Ten of the Biggest Debacles in Investment Banking History 335
CHAPTER 20: Ten Ways to Improve a Discounted Cash Flow Analysis 345
CHAPTER 21: Ten (or So) of the Best Online Resources for Investment Bankers 355
APPENDIX: WHERE INVESTMENT BANKING CAME FROM 363
INDEX 371
