From e09da73ec25313a61373c8b110fdfb26b7c58b5b Mon Sep 17 00:00:00 2001 From: ronny abraham Date: Thu, 17 Jul 2025 22:44:18 +0300 Subject: [PATCH] finished IPO, added DCF analysis stub --- mba-main.org | 1 + mba/ch64.org | 57 ++++++++++++++++++++++++++++++++++++++++++++++++++++ mba/ch65.org | 9 +++++++++ 3 files changed, 67 insertions(+) create mode 100644 mba/ch65.org diff --git a/mba-main.org b/mba-main.org index 075e178..bb0dbc2 100755 --- a/mba-main.org +++ b/mba-main.org @@ -69,3 +69,4 @@ ** seciton 12 - Initial Public Offering (IPO) - [[./mba/ch64.org][Chapter 64. How an IPO works]] +- [[./mba/ch65.org][Chapter 65. How DCF (Discount Cash Flow) analysis works]] diff --git a/mba/ch64.org b/mba/ch64.org index a0cc17f..b5e4a57 100644 --- a/mba/ch64.org +++ b/mba/ch64.org @@ -101,3 +101,60 @@ Mary Meeker, formerly a partner at Kleiner Perkins, is known for publishing the *** long term drivers earnings and cash flow + +*** additional valuation methods + +** example of IPO +1. microsoft offers to buy company for 1bn + - reject it bc too low + - want to go big +2. talk to our VC Sequoia for advice + - they recommend we talk to Goldman sacks +3. Goldman Sacks recommends we bring in other banks + - reasons + - this going to be a large IPO + - Sequoia wants to spread it out + - we will have a better job negotiating a good deal if we have more banks + + - banks + - Morgan Stanly + - UBS + +*** Goldman Sacks Divisions +**** Investment Bankers +- underwrite the IPO + - legal documents + - excel valuation + - what valuation you should use + - list all the risks "IPO Perspectous" + - all risks have to be disclosed + - also called an S-1 + +**** Equity Capital Markets (ECM) +1. write 20 page sales memo for the GS sales team + - condense information in the S-1 Perspectous + +2. train sales team how to market the deal + - pros & cons + - always bring up the risks + - integrity is key + +3. call clients + - mutual funds + - Fidelity + - Citadel + - hedge funds + +4. after orders are submitted ECM decides how many share each client gets + - Goldman and the company doing the IPO negotiate on this + - Goldman will fight for their own clients + - companies typically want long term shareholders + - the clients who understand them + - companies can always track investors who sell shares + - SEC law that mutual funds have to disclose every three months what their long positions are + + - companies that don't flip tend to get more shares + +5. Traders then distribute shares to the clients + +6. Goldman wires the IPO proceeeds to the company minus the fees. diff --git a/mba/ch65.org b/mba/ch65.org new file mode 100644 index 0000000..586297f --- /dev/null +++ b/mba/ch65.org @@ -0,0 +1,9 @@ +#+title: Section 11 | Lesson 65 - DCF (Discounted Cash Flow) Analysis +#+HTML_HEAD: +#+OPTIONS: H:6 + +* Links +- [[./../mba-main.org][TOC | Business]] +- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4317198#overview][S12:L65 course video]] + +* notes