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Apollo discussion v13.ppt
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STRICTLY CONFIDENTIAL
Investment Banking, 2E
USER GUIDE
Comparable Companies Analysis
JOSHUA ROSENBAUM & JOSHUA PEARL
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Apollo discussion v13.ppt
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Copyright © 2013 by Joshua Rosenbaum and Joshua Pearl. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
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ISBN-13 978-0-470-44220-3
Printed in the United States of America
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Apollo discussion v13.ppt
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Introduction
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The financial data for each comparable company is entered into an input page – each comparable company has its own page
The input page is designed to assist in calculating the key financial statistics, ratios, and multiples for the comparables universe
The input page data, in turn, feeds into output sheets that are used to benchmark the comparables
Income statement, cash flow statement, and balance sheet data, as well as financial projections and shares/options data are entered into yellow-shaded cells with blue font formatting
Automatic formulas in teal cells with black font formatting use the inputted information to calculate the appropriate ratios and trading multiples
These ratios and multiples are the primary metrics used to compare the comparable companies
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Input Page (pre)
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Input Page (post)
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Apollo discussion v13.ppt
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Benchmarking Analysis Output Pages
The following pages display three benchmarking analysis output templates prior to and after data entry
No data entry is required for these pages, as they are linked directly from the input pages
These pages display the mean, median, maximum (high), and minimum (low) for the universe’s selected financial statistics, ratios, and multiples for easy comparison and analysis
Prior to entry of the appropriate financial data into each input page, the output page cells will display “0” or “NA”
Once the input pages for each comparable company are completed, the benchmarking analysis can be performed
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Apollo discussion v13.ppt
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Benchmarking Analysis – Financial Statistics and Ratios, Page 1 (pre)
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Benchmarking Analysis – Financial Statistics and Ratios, Page 1 (post)
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Benchmarking Analysis – Financial Statistics and Ratios, Page 2 (pre)
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Benchmarking Analysis – Financial Statistics and Ratios, Page 2 (post)
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Comparable Companies Analysis Output Page (pre)
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Comparable Companies Analysis Output Page (post)
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