Investment Banking Course

Investment Banking Course
Individual Final Project
Introduction
The increasing role of investment banks worldwide, especially in today’s economic environment,
require a solid understanding of a company’s (the client of Investment Banks) strengths and
weaknesses, future prospects and value creation opportunities. Furthermore, the amount and
quality of information about companies and industries is growing rapidly. In this assignment, you
will be assigned as an investment banker, representing a Group of Investors, to acquire a Target
Company.
Your Role is to assess a company’s financial health, how its performance compares to the
competition, and how financing strategies and options shape the business (and the other way
around) and suggest an Acquisition plan on the assigned company.
The Project
Select a Kuwaiti Company, listed on Kuwait Bourse, use the company’s financial information from
the last three years, together with any other information you believe is relevant, and carry out an
assessment of the company’s performance. You must have at least three years of information in
order to be able to interpret trends over time.
Your analysis must include the following:
1- Briefly describe the company’s history, business and operations.
2- Describe the major activities of the company; investments, Mergers & Acquisitions…
3- A summary of the forces that most influence your company’s performance, i.e. what are the
major factors (internal and external) that could have a significant impact, positive or
negative, on your business. You should try to focus on the key factors and relate these with
the financial performance of your company.
4- An assessment of how the strategy of your business affects the financial performance.
5- An analysis of how the company is performing on liquidity, activity, debt and profitability
ratios, i.e. analyses the different components of cash flow and working capital to explain
financial performance. Include an assessment of whether your company is performing well,
adequately, or poorly, together with an explanation of the information you used to come to
those conclusions.
6- Determine the cost of capital and assess how the capital structure of the company has
evolved and whether or not it supports the company’s strategy and its value creation.
7- A summary of your company’s main risk areas, on an enterprise-wide basis, along with what
can be done to mitigate those risks.
8- Forecast the financial statements for the coming three years and Forecast the Free Cash
Flow for the next Three years
9- Conduct a Valuation for the company using DCF model, DDM and Multiples, commenting on
the market value added.
10- Do you think the company needs a restructuring plan? If so, suggest A Restructuring Plan.
11- Submit an Offer to acquire a stake in the Company along with suggested Term Sheet
12- What is the elements you need to check through your Due Diligence Process?
13- How will your fund the acquisition?
Supplementary Data & Research:
Towards preparing the deliverables, each student is expected to obtain additional and
supplementary information from all possible sources.
Deliverables
 Final Report
Student will prepare a Report contains the mentioned requirements in Word/PDF format.
 Excel Sheet
Students will prepare and deliver the Excel Financial Model used in the case