Investment Banking case studies, worked step by step

Cases
100
Traced to a firm
55
Topics
12
Hard
30
Topic
All topicsLBO9Accretion and dilution7Reading financials8Restructuring11M&A strategy9Deal execution7Operating cases and estimation8Credit and leveraged finance9Comps and relative value9Sector valuation8Capital markets and financing8DCF and intrinsic value7
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 11–12 of 12 · filtered from 100Clear filters
  1. 096Creditors owed Rs 2,000 crore by an insolvent steel company must choose between Rs 900 crore upfront and a plan paying Rs 400 crore upfront, Rs 800 crore over four years and 10% of the reorganised equity valued at Rs 1,500 crore. Discount at 12%. Which plan, and what are they really voting on?RestructuringHardRestructuring IBLeveraged finance
  2. 097A lender has a Rs 10,000 crore book on Rs 2,000 crore of equity, an 8% net interest margin, operating costs of 2.5% and credit costs of 1.5% of the book, tax at 25%, cost of equity 15% and growth 10%. Compute ROA, ROE and the justified price-to-book, then redo it with credit costs at 3%.Sector valuationHardFinancial institutions groupIndustry coverage

Company names and figures are illustrative.