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Articles & Books From Robert R. Johnson
Wrap your head around the complicated world of investment banking with this understandable and comprehensive resource The celebrated authors of Investment Banking For Dummies, 2nd Edition have updated and modernized their best-selling book to bring readers an invaluable and accessible volume about the investment banking industry.
Article / Updated 05-19-2020
If you’re like most people, you probably figure investment banking got its start in a towering office skyscraper in New York City. But the real story of the origin of investment banking is far less metropolitan, yet arguably even more interesting. Investment banking traces its roots to the age of kings and queens.
Article / Updated 05-19-2020
The IPO (Initial Public Offering) still remains one of the pinnacles of what a company can achieve in its early life. When a company sells stock to the general public for the first time, it’s a sign that the company has a compelling enough story that it can attract outside investors to buy a piece of the company.
Article / Updated 05-19-2020
Mergers and acquisitions (M&A) is a key function of the investment banker. When companies get together and combine, which happens during mergers and acquisitions, the terms of a deal usually are straightforward. Typically, a larger company is looking to bolster a part of its business.The company could hire a team of people to build that company from scratch, pairing up researchers to design the product, finance people to price it right and control costs, marketing people to whet the consumers’ appetite, and operations people to get the product.
Article / Updated 05-19-2020
Investment bankers spend a great deal of time constructing financial models on spreadsheets and manipulating them to arrive at values for companies, divisions, and potential projects. These models are often very complex and involve many assumptions and inputs. This article provides some ideas on how investment bankers can improve their analyses and deliver greater value to clients.
Cheat Sheet / Updated 02-18-2022
Investment banking has a big impact on the world you live in, whether you have investments or not, and understanding what investment bankers do is important. Part of investment banking has to do with mergers and acquisitions, like why companies buy other companies and what’s in it for them. Even people who aren’t big on investing sometimes get the urge to be part of an initial public offering, more commonly known as an IPO.
Step by Step / Updated 03-27-2016
One of the greatest things about EDGAR is that it contains just about every piece of investment banking data on publicly traded companies (those that have stock that trades on a public exchange) and firms that have sold debt to the public.
But the second best thing about EDGAR is the fact that it's free. And even though EDGAR is operated by the government, you don't have to wait in line to use it.
Article / Updated 03-26-2016
Wildly successful initial public offerings leave investors talking and fantasizing for years. Investors who got into Microsoft or Google at the IPO prices have made a bundle.
Given how desired shares of hot IPOs are, it's not surprising that investment bankers hold them very closely. Investment bankers' role in the IPO process remains one of their most high-profile functions.
Article / Updated 03-26-2016
The most important document the company and the investment bankers must produce to make an IPO happen is the prospectus. The prospectus lists all the opportunities, risks, and financial details about the company that's selling stock to the public. It's available to investors, regulators, and other interested parties.
Article / Updated 03-26-2016
When an investment banking firm is advising a firm seeking to acquire another company, the investment banking firm is referred to as a buy-side advisor. The buy-side advisor is responsible for
Helping the company identify potential acquisition targets
Performing due diligence on proposed targets
Valuing the proposed benefits of the acquisition
Negotiating with target firms to establish the terms of the deal
Closing the deal
How to identify potential acquisition targets
The buy-side M&A advisor will help identify potential target firms that meet the client's criteria.