Knowledge Base
Deal Mechanics
9 articles
M&A, LBOs, accretion/dilution, synergies, and the math of deal-making.
| Article | Time |
|---|---|
Accretion / Dilution Master the Yield Method and EPS Method for investment banking interviews. Learn why using CAPM for accretion is a fatal error, how to avoid the "bootstrapping earnings" trap, and the exact formulas to answer "is this deal accretive" correctly every time. | 5 min |
Deferred Taxes Master deferred tax assets, liabilities, and NOL carryforwards for IB interviews. Covers book-tax timing differences and valuation allowances. | 7 min |
EPS Method Master the EPS method for M&A accretion analysis. A cheat sheet covering the key formulas, the split-paper framework, and common interview traps. | 3 min |
LBO Overview Master LBO mechanics: debt financing, equity returns, and value creation drivers. Essential technical interview prep for PE and IB roles. | 7 min |
M&A Overview M&A fundamentals: deal types, strategic rationale, valuation methods, and the mechanics of how companies buy other companies. | 5 min |
Returns Master returns calculations for finance interviews. Learn holding period, annualized, and total returns with clear formulas. | 4 min |
Synergies What synergies are in M&A, how to quantify revenue and cost synergies, and how bankers model them into deal valuation. | 5 min |
Tax & Tax Shield How taxes impact valuation, WACC, and financial modeling. Corporate tax shields, timing differences, and effective vs marginal rates. | 4 min |
Paper LBO How to answer "Walk me through an LBO" and solve a Paper LBO in an interview. The 3-step framework for calculating IRR in your head. | 4 min |