finished IPO, added DCF analysis stub

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]]

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.

mba/ch65.org

@@ -0,0 +1,9 @@
+#+title: Section 11 | Lesson 65 - DCF (Discounted Cash Flow) Analysis
+#+HTML_HEAD: <link rel="stylesheet" type="text/css" href="../_share/media/css/org-media-sass/categories/business.css" />
+#+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