Romero Mentoring Business Essentials Program: Learn Financial Modeling & Other Skills Investment Banks Want

Romero Mentoring

Romero Mentoring Business Essentials Program: Learn Financial Modeling & Other Skills Investment Banks Want

What is the Business & Analyst Essentials Program?

Romero Mentoring’s Business & Analyst Essentials Program is a comprehensive, self-study training program that covers major topics like financial modeling, mergers & acquisitions, and investment banking soft skills. It is comprised of training lectures, technical assignments, investment case studies, and interview & resume workshops. With over 50 hours of video lectures and a four-week average completion time, students will learn the major skills needed to excel in the business and finance world.

Why is learning financial modeling and the other skills taught in this program important?

For the thousands of college or high school students pursuing business and finance careers (380,000+ just in the US), learning technical skills used in the field is crucial for success.[1] Financial modeling, corporate valuation, and leveraged buyout, and mergers & acquisition modeling are all utilized heavily in the field. Some of the top professions where entry-level analysts must possess these necessary skills include:

  • Investment Banking Analyst: The analysts in investment banking assist clients in raising money through the issuance of securities, in carrying out mergers & acquisitions transactions, and in investing in unique opportunities such as derivatives. They are required to have deep knowledge in all the skills taught in the Business Essentials Program, especially financial modeling. Those in the Mergers & Acquisitions division will be required to know mergers & acquisitions modeling and will have the opportunity to learn about several industries, different company structures, negotiating skills, risk, and the importance of efficiency.[2] Moreover, investment banking is a highly competitive field, with thousands of applicants vying for an offer every year and only 4.9% that making it through.
  • Equity Research Analyst: Analysts here are responsible for producing industry- or stock-specific research reports, projections, and recommendations. They utilize financial modeling and corporate valuation techniques heavily in their work.
  • Hedge Fund Analyst: These analysts utilize quantitative and fundamental research to identify assets to trade that are in line with the fund’s specific trading strategy and mandate. They rely on financial modeling, corporate valuation, and many other techniques to find opportunities in the markets.
  • Private Equity Analyst: The analysts in private equity firms are part of the deal process that is carried out by the firm in the private markets. They utilize financial modeling and leveraged buyouts modeling heavily to analyze and monitor data, look for potential investment opportunities for their firm, and raise capital from outside investors.

Despite the number of highly desirable careers that require these skills, they are rarely taught in a college classroom. Thus, college and high school students interested in these paths must seek the knowledge from outside sources.

For the 25 million entrepreneurs operating their businesses in the US, financial modeling is a great tool to help project those businesses’ financials and map out their long-term growth. If these businesses are looking to acquire others or be acquired, learning the fundaments behind mergers & acquisitions is crucial. Moreover, learning how to value their own businesses as well as those of competitors is key for anyone looking to make an exit or pursue new projects.

For the millions of retail investors evaluating companies to add to their portfolios, learning these skills is needed to improve their selection process. Financial modeling will help them project a company’s future performance and cash flows. Understanding mergers & acquisitions will help them take either a long or a short side on potential deals to potentially profit off of the outcome. These two skills combined with corporate valuation will allow them to assess the fundamental value of a business and begin investing like a professional.

Finally, for anyone who does not fall into the above categories, the skills mentioned can still be a great way to expand one’s skillset. Every year, millions of individuals passionate about business and finance seek to view the businesses and economies around them through an investment banking lens. Thus, they add financial modeling, corporate valuation, and mergers & acquisitions knowledge to their arsenal with the goal of becoming better professionals, investors, and members of society.

Program Overview

Through 8 modules of training and a career development workshop spanning 50 hours together, you’ll learn:

  • Business Fundamentals – Accounting fundamentals, How to perform due diligence, and Excel
  • Financial Modeling – Income statement, Balance sheet, Cash flow statement, and Supporting schedules (utilized by most high finance professionals)
  • Corporate Valuation – Comparable company analysis, Precedent transactions, Discounted cash flow, Sum of parts, and more (utilized by most high finance professionals)
  • Technical Analysis – Market sentiment, Most important technical indicators, and more (utilized mainly by hedge fund analysts/associates and traders)
  • Leveraged Buyout Analysis – Sources, Uses, Goodwill, Pro-forma balance sheet, Debt & credit ratio schedules, IRR calculations, and more (utilized mainly by private equity analysts/associates)
  • Mergers & Acquisitions – Sources, Uses, Goodwill, and Accretion/dilution analysis (utilized mainly by investment banking analysts/associates)
  • Career Development – Careers in finance, Resume and interview preparation

Investment Cases

Amazon Inc. Case Study Overview (11+ hours)  

In 2020 Amazon.com, Inc. (AMZN) stock price had increased ~24% outperforming most of the stock market by about 36 percentage points. This case study covers key events that caused Amazon’s stock price to increase. We also discuss valuation analysis to determine if the stock price is currently undervalued or fairly valued by the market. Learn how to analyze a company like a real investment analyst, from scratch, and execute its financial modeling, valuation, and investment presentation with detailed guidance every step of the way. 

eBay Inc. Leveraged Buyout Case Study (6+ hours) 

Our case study examines eBay’s board of director’s decision to spinoff PayPal in July 2015 in a deal worth ~$48 billion. The decision has made eBay less competitive. Since the PayPal spinoff, eBay’s stock price has unperformed the technology QQQ ETF, PayPal stock, and its biggest competitor, Amazon. We analyze the board’s reasons behind splitting the two businesses. We also explore a potential $63 billion leveraged buyout of eBay by building an LBO model and performing due diligence. Learn how to analyze a corporate spinoff and LBO consideration like a professional with detailed guidance every step of the way.

Sources:

  1. NECS. “Table 322.10. Bachelor’s degrees conferred by postsecondary institutions, by field of study”. Digest of Education Statistics. Nov. 2019.
  2. Shah, Aaditya. “Mergers and Acquisitions: A Brief Guide on M&A”. Romero Mentoring. 8 Jun. 2021.

About the Author

Romero Mentoring

Romero Mentoring is a leading career program provider for students and professionals. Our programs transform our mentees into highly skilled professionals through personal one-on-one mentoring, advanced technical training and internship experience not found anywhere else.