Investment Banking Nerd

What does a Private Equity Firm sees for Deal to a Great Businesses ? 1. Large and Ideally Growing Target Addressable Markets (TAMs): Even a great business can be a bad investment if its TAM is rapidly shrinking. Conversely, a growing TAM allows a great company to grow exponentially, like an electric battery company benefiting from the expanding electric vehicle market. Investors also assess how well a company can serve this market, considering product distribution abilities and go-to-market strategies. 2. Strong Competitive Moat: A competitive moat is a non-negotiable feature for PE investments. It refers to a company's unique advantages, such as brand strength, proprietary technology, or cost efficiency, that protect it from competitors and ensure long-term profitability. Without a strong moat, a business risks being overtaken, as exemplified by Blackberry's decline despite initial market share, due to its inability to protect itself from iPhone and Android competitors. 3. St...

  How to Analyze an Income Statement ? There are two ways we will do it while using the Excel ! 1. Trend Analysis  2. Vertical Analysis  Trend Analysis  In the analysis we will compare the year by year analysis for the whole statement.  If you have a statement you can do it easily but for practise you can download some companies statements like Tata and GE Vernova for example. So if we take the first step we will see Revenue and mostly statement shows two to three years numbers, if we have March 24 and March 25 we will do the analysis like,  = (March 25 Revenue- March 24 Revenue) / March 24 Revenue And we can do it for all line items.  Vertical Analysis  In this analysis we will compare each item by a particular item, where we see that Revenue is the most prominent item in Income Statement we can compare it with all others for example only.  So the formula will be  = Cost of Sales / Revenue or = Insurance Expense / Revenue (in percentage...

There are three type of relation between data :  1. One to One  2. One to Many  3. Many to Many

After watching more than 100 job posts one thing that is consistent is  "Tableau" So I decided to learn the basics of Tableau ! Chandoo the superstar was the first one to watch when this technicals come in life.  What is Tableau ?  It is quite a popular tool to analyze and visualize the data. It's a Business Intelligence Tool, which pays you well I guess.  It's a yet another popular tool which is in high demand in market as per my analysis but as a added skill that's what they write so I decided to learn this but with a small start as I don't have premium of this tool.  What did I learn and you can too ? It's as simple as any Excel sheet but an added advantage of Report Dashboard which showcase you data into visuals.

It is such a comprehensive and best explantion that I got from Mckinsey Forward Program Pyramid Principle :  1. Governing thoughts : Are those points that need to be delivered to the audience within max 2 minutes of your interaction as these are the most important points to be in the mind of the audience and they are the points that you are presenting as a result of what your plan of action will be.  It is easy and bottom up approach that tell the audience what will happen first which will create curiosity and then follow the below mentioned steps.  2. Key Line Statement :  These statement describes to the audience how and what will happen, that is the solution to the problem or hustle whose result you have already told.  This helps to build a statement that helps the audience to digest the Governing thoughts you have already delivered and excited them with.  These need to be more detailed than the Governing thoughts and more reasonable to showcase a roadma...