M&A Training

The EV/Equity Bridge

1h20

3 videos

Difficulty

Available for free to our members

About the training

This course is essential because it introduces the concept of valuation. Before knowing how to value a company, we need to know what is the value we are considering: Enterprive value or Equity value. The objective of the course is to help you fully understand these financial values.

The bridge between the EV and the EqV is a key part of M&A interviews. It's all about:

The general logic of the concepts
How to get from Enterprise Value to Equity Value?
The difference between these two values and how they relate to all the valuation methods

Finally, we will study in details the difference between debt and equity, their different levels of seniority in case of bankruptcy very frequent in Investment Banking interviews.

Questions you will be able to answer

Walk me through the EV/EqV bridge
What is the net debt ?
How to calculate the "diluted market cap"? What is the Treasury Stock Method?
Why is debt cheaper than equity?
What are the different types of debt?
How are convertible bonds accounted for in the bridge?

The keywords of the training

The videos of the training

Course 1

M&A Training

What is the EV/EqV "Bridge" and why do a bridge?

This video is about how to build a bridge step by step from Enterprise Value to Equity Value, what are the elements that we incorporate in the bridge and why do we include them.

32 min
Course 2

M&A Training

Focus on the diluted Equity Value and the Treasury Stock Method

We will focus on market cap definition and calculation and study the difference between market cap and diluted market cap, which is used in the EV/EqV bridge (using the Treasury Stock Method).

14 min
Course 3

M&A Training

Dette vs Equity

The purpose of this video is to differentiate debt financing from equity financing. We will study the cost of debt and the cost of equity as well as the different types of debt and equity.

33 min