What's The Big Deal?

This week Graham and Debs try something different. Rather than dissecting a single deal, they go back to basics with one of the most important concepts in finance — the leveraged buyout — and build up from first principles using two of the biggest real-world examples in the market right now: the $18B acquisition of Hologic and the $55B acquisition of Electronic Arts.Graham walks through the core LBO framework using an accessible house purchase analogy, explaining how leverage turns a 1.5x equity return into a 3x return, what drives that amplification, and what the key variables in any LBO analysis actually are. From there the conversation covers what makes a good LBO candidate, the concept of cash conversion, how loan-to-value has evolved since the early days of private equity, and the three main value creation levers available to a private equity owner.The second half of the episode puts theory into practice. Graham runs a live napkin LBO on both the Hologic and EA deals — walking through sources and uses, entry multiples, debt paydown assumptions and return calculations — and asks the central question: do the numbers actually make sense?The episode closes with a broader conversation about the evolution of private equity — from the generalist, high-leverage model of the early 90s to today's specialist, operationally-focused landscape — and what record levels of dry powder mean for returns going forward.Key Discussion Points:LBO fundamentals — what a leveraged buyout is, how leverage amplifies equity returns, and the key variables that drive an LBO model. LBO candidates — what makes a business suitable for a leveraged buyout: cash conversion, recurring revenues, predictable cash flows. Sources and uses — how deals get financed, what refinancing existing debt means and why a target's cash is a legitimate source of transaction funding. Money multiple vs. IRR — what each metric measures and why you need both to evaluate a deal properly. The Hologic LBO walkthrough — entry and exit multiples, debt structure, return sensitivity and the revolving credit facility question. The EA deal — 30x entry multiple, $20 billion of debt, and why the base case numbers require a significant EBITDA growth story. Co-investment and sovereign wealth — why mega-deals increasingly rely on structures beyond the traditional GP/LP fund. The evolution of private equity — dry powder, multiple expansion and why operational improvement matters more than ever.Why Wall Street Prep? Wall Street Prep is the trusted training provider for the world's top investment banks, private equity firms, Fortune 1000 companies and business schools. Our online training and instructor-led boot camps are direct adaptations of our corporate training, making Wall Street Prep the ideal choice for those looking to break into finance.DISCLAIMER: The information provided in this video is for educational and entertainment purposes only and does not constitute financial, investment, tax, or legal advice. Investing involves risk, and you may lose some or all of your capital. Past performance is not indicative of future results. Please conduct your own due diligence or consult with a certified professional before making any financial decisions.WTBD Newsletter: https://webmail.wallstreetprep.com/whats-the-big-dealFollow Us On Socials:LinkedIn: https://www.linkedin.com/company/wall-street-prep/Instagram: https://www.instagram.com/wallstreetprep/Resources: https://linktr.ee/wallstreetprep

Q1 2026 delivered one of the strongest quarters on record for the major investment banks and in this episode, Debs and Graham break down exactly what drove it. Starting with the headline numbers at Goldman Sachs, JPMorgan and Morgan Stanley - nearly $90 billion in combined revenue, up 12% year on year. They unpack why this quarter was unusual: all three core revenue engines fired simultaneously, something that rarely happens.The conversation moves through each division in turn. On the M&A and ECM side, fees were up 40% year on year, with Graham making the case that pent-up demand is driving a deal pipeline that could make 2026 a record year. Trading revenues across the top five banks came in at nearly $50 billion. A figure that surprised even seasoned market watchers, with Debs explaining why volatility, not bull markets, is the real trading revenue driver, and why JP Morgan, Goldman and Morgan Stanley each benefited for very different reasons. Wealth management, meanwhile, posted quieter but resilient growth on the back of significant asset inflows.The episode also doubles as an investment banking primer. With Debs fresh from teaching spring week programmes at major banks, she and Graham walk through how the different divisions are structured, what each one actually does, and what a career in each area really looks and feels like.They close with the central question: is this a one-quarter spike driven by exceptional market conditions, or the beginning of a sustained recovery for investment banking?Key Discussion Points:Q1 earnings overview: combined revenues, growth rates and why broad-based outperformance across all divisions is unusual. M&A and ECM recovery: what's driving the 40% fee growth and whether the pipeline supports continued momentum. Trading revenues: why volatility is the key driver, and how JP Morgan, Goldman and Morgan Stanley each captured it differently. Wealth management: steady asset inflows, fee growth, and why it matters more than the headlines suggest. Investment banking divisions explained: ECM, DCM, M&A advisory, and the difference between markets and banking roles. Career insights: work culture, skills, deadlines, and how to think about which part of the bank suits you. Outlook: sustained recovery or short-lived spike?WTBD Newsletter: https://webmail.wallstreetprep.com/whats-the-big-dealFollow Us On Socials:LinkedIn: https://www.linkedin.com/company/wall-street-prep/Instagram: https://www.instagram.com/wallstreetprep/Resources: https://linktr.ee/wallstreetprep

ChatGPT vs. Claude. Consumer vs. enterprise. Own your infrastructure vs. lease it. On the surface, OpenAI and Anthropic look like the same business. Look closer and the differences are significant and they matter enormously for investors.In this episode of WTBD, Debs and Graham go under the hood of the two most talked-about AI companies in the world, breaking down what their business models actually look like, how their revenues compare, what recent fundraising rounds tell us about their valuations, and whether there's really room for both to win.Topics covered: → Business model differences: consumer vs. enterprise, API vs. subscriptions → Infrastructure strategy: why owning vs. leasing compute matters long-term → Strategic partnerships: Microsoft, Google, Amazon and what they signal → Revenue and cost efficiency: who's doing more with less → Recent fundraising: $850B vs. $380B, why the valuation gap? → IPO outlook: target valuations, retail investor appetite, and the $1 trillion question → Winner-takes-all or fragmented market? The $5 trillion AI market breakdownWhether you're an investor weighing up the AI space, a finance professional tracking the IPO pipeline, or just trying to cut through the hype, this is the episode for you.Why Wall Street Prep?Wall Street Prep is the trusted training provider for the world’s top investment banks, private equity firms, Fortune 1000 companies and business schools. Our online training and instructor-led boot camps are direct adaptations of our corporate training, making Wall Street Prep the ideal choice for those looking to break into finance.DISCLAIMER: The information provided in this video is for educational and entertainment purposes only and does not constitute financial, investment, tax, or legal advice.Investing involves risk, and you may lose some or all of your capital. Past performance is not indicative of future results. Please conduct your own due diligence or consult with a certified professional before making any financial decisions.WTBD Newsletter: https://webmail.wallstreetprep.com/whats-the-big-dealFollow Us On Socials:LinkedIn: https://www.linkedin.com/company/wall-street-prep/Instagram: https://www.instagram.com/wallstreetprep/Resources: https://linktr.ee/wallstreetprep

Q1 2026 just delivered the most mega-deals in a single quarter, ever!But not every deal in this bumper period is one to celebrate. This week Deborah and Graham break down what's driving the surge in $10BN+ transactions, then go deep on one of the quarter's most talked-about deals: Unilever selling its food business, including Marmite and Hellmann's, to McCormick for $45 billion.On the surface it looks like a bold strategic pivot. But when you crunch the numbers, the picture gets complicated fast. Low valuation multiples, 4x leverage, €500M+ in separation costs, and a structure that means Unilever isn't actually exiting at all, yet.What you'll learn:• Why Q1 2026 may be the best quarter for mega-deal M&A on record and what's really driving it• How pent-up demand and a permissive antitrust environment are unlocking dealmaking despite geopolitical uncertainty• Why Unilever has been systematically exiting food, and what structural pressures are hitting the whole industry• What a Reverse Morris Trust actually is, and why it makes this more of a spin-off than a sale• Why the Kraft Heinz deal fell apart, and what that meant for Unilever's options• How to read the valuation: 13.8x EBITDA, 4x leverage, and what the market's 7% share price reaction tells you• Why private equity wasn't interested, and what that says about the investment case for food businesses right nowWhy Wall Street Prep?Wall Street Prep is the trusted training provider for the world’s top investment banks, private equity firms, Fortune 1000 companies and business schools. Our online training and instructor-led boot camps are direct adaptations of our corporate training, making Wall Street Prep the ideal choice for those looking to break into finance.DISCLAIMER: The information provided in this video is for educational and entertainment purposes only and does not constitute financial, investment, tax, or legal advice.Investing involves risk, and you may lose some or all of your capital. Past performance is not indicative of future results. Please conduct your own due diligence or consult with a certified professional before making any financial decisions.WTBD Newsletter: https://webmail.wallstreetprep.com/whats-the-big-dealFollow Us On Socials:LinkedIn: https://www.linkedin.com/company/wall-street-prep/Instagram: https://www.instagram.com/wallstreetprep/Resources: https://linktr.ee/wallstreetprep

Elon Musk's SpaceX is reportedly preparing to file its U.S. IPO prospectus as early as this week, targeting a public listing this June.According to new reports from the Information, advisors now predict the company could try to raise a record-breaking $75 billion, far above the $50 billion previously touted.This would more than double the previous $29 billion record set by Saudi Aramco in 2019.To put this figure into perspective, this single listing would surpass the total proceeds raised by every other U.S. IPO this year combinedAt a projected valuation of $1.75 trillion, SpaceX would instantly become the 7th largest public company in the world.While the final valuation and offering size won't be locked in until weeks before the June debut, the structure of the deal is already raising eyebrows.In a significant departure from Wall Street norms, SpaceX is expected to bypass the standard six-month lockup period.Additionally, while banks typically limit individual investors to 10% of an IPO, the retail and ultra-high-net-worth investor portion for SpaceX could remarkably exceed 20%. In this episode of the ‘What’s The Big Deal?’ podcast, Deborah Taylor and Graham Smith discuss the unprecedented valuation, why the usual rules don't apply for Elon, and what this means for investors and capital markets.Why Wall Street Prep?Wall Street Prep is the trusted training provider for the world’s top investment banks, private equity firms, Fortune 1000 companies and business schools. Our online training and instructor-led boot camps are direct adaptations of our corporate training, making Wall Street Prep the ideal choice for those looking to break into finance.DISCLAIMER: The information provided in this video is for educational and entertainment purposes only and does not constitute financial, investment, tax, or legal advice.Investing involves risk, and you may lose some or all of your capital. Past performance is not indicative of future results. Please conduct your own due diligence or consult with a certified professional before making any financial decisions.WTBD Newsletter: https://webmail.wallstreetprep.com/whats-the-big-dealFollow Us On Socials:LinkedIn: https://www.linkedin.com/company/wall-street-prep/Instagram: https://www.instagram.com/wallstreetprep/Resources: https://linktr.ee/wallstreetprep

Welcome to the fourth episode of the 'What's the Big Deal?' (WTBD) podcast powered by Wall Street Prep.AI is advancing at an exponential pace. Tools like Claude, ChatGPT, CoPilot and Shortcut are fundamentally reshaping workflows and what it means to be an investment banking analyst.But where are we right now? And where are we heading? In this special episode of the podcast Wall Street Prep Founder & CEO Matan Feldman and Graham Smith discuss the current state of play and if analyst jobs are really under threat.SPOILER ALERT: The overwhelming takeaway is completely counterintuitive to the current prevailing narrative and that is potentially very exciting.Why Wall Street Prep?Wall Street Prep is the trusted training provider for the world’s top investment banks, private equity firms, Fortune 1000 companies and business schools. Our online training and instructor-led boot camps are direct adaptations of our corporate training, making Wall Street Prep the ideal choice for those looking to break into finance.Time Stamps: Introduction: 00:00The Current State of Play for AI Tools in Investment Banking 02:18How Good Are These Tools Right Now 04:39What Do These Tools Do Well 5:52The Dangerous Errors These Tools Make 7:39Are These Tools Good At Tricky or Advanced Analyst Work 11:42The Impact Will These Tools Have on IB Recruiting Pathways And What You Need To Be Successful 14:47The Potential Increased Demand for Investment Bankers 20:52Are Investment Banks Replacing Analysts With Technology 23:38What AI Tools Are Investment Banks Using (Claude, CoPilot, GPT) 26:35What You Need To Do As A Future Investment Banker 27:21Why You Still Need Fundamental Financial Knowledge As Well As AI Tools 30:03The Dangerous Temptation Of AI Tools & The Wrong Way To Break Into The Industry 34:29Which Divisions Are Adopting AI 36:26What AI Doesn’t Do: 39:23Are Roles Under Threat & How Do You Future Proof Yourself 42:42Will Be An Investment Banker In The Future Become More Interesting 45:50Advice for Analysts & Future Investment Bankers 47:33DISCLAIMER: The information provided in this video is for educational and entertainment purposes only and does not constitute financial, investment, tax, or legal advice.Investing involves risk, and you may lose some or all of your capital. Past performance is not indicative of future results. Please conduct your own due diligence or consult with a certified professional before making any financial decisions.WTBD Newsletter: https://webmail.wallstreetprep.com/whats-the-big-dealFollow Us On Socials:LinkedIn: https://www.linkedin.com/company/wall-street-prep/Instagram: https://www.instagram.com/wallstreetprep/Resources: https://linktr.ee/wallstreetprep

Welcome to the second episode of the 'What's the Big Deal?' (WTBD) podcast powered by Wall Street Prep.In this episode, Wall-Street Experts Deborah Taylor, (former Director at Barclays) and Graham Smith (former Director at Ares) dive deep into Paramount's $110B acquisition of WBD.They discuss why Netflix's $27.75 bid wasn't actually "cheaper" than the Skydance $31 offer once you account for the complex spin-off mechanics of the linear TV business. They explore the "circular" valuation methods where investment banks used Larry Ellison’s previous deal to justify the price of this one, alongside the eye-watering $2.8B breakup fee paid to Netflix and the "ticking fee" that makes every delay incredibly expensive. Finally, they look at the real human cost, from the CEO's $700M payout to the creative teams facing $6B in "synergies" and budget cuts.The financial health of this acquisition is a major talking point, with the combined entity looking at a staggering $85B in debt, placing it firmly in LBO territory at roughly 6x EBITDA. Debs breaks down her exclusive analysis showing a measly 5-6% EPS accretion, raising the question of whether this deal actually creates value for anyone other than the Ellison family. With S&P already placing the company on credit watch, the pressure is on to see if those massive promised synergies ever actually materialize.Why Wall Street Prep?Wall Street Prep is the trusted training provider for the world’s top investment banks, private equity firms, Fortune 1000 companies and business schools. Our online training and instructor-led boot camps are direct adaptations of our corporate training, making Wall Street Prep the ideal choice for those looking to break into finance.Wall Street Prep: https://www.wallstreetprep.com/Download Free Financial Models: https://www.wallstreetprep.com/free-resources/Virtual Finance Boot Camps: https://www.wallstreetprep.com/public-courses/Financial & Valuation Modeling Certification Program (Premium Package): https://www.wallstreetprep.com/self-study-programs/premium-package/Private Equity Certificate Program with Wharton Business School: https://wallstreetprep.wharton.upenn.edu/pe-certificate/?utm_source=wsp&utm_campaign=wspSiteRefer&utm_content=siteNavAI for Business & Finance Certificate Program: https://wallstreetprep.business.columbia.edu/ai-certification/?utm_source=wsp&utm_campaign=wspSiteRefer&utm_content=siteNavFollow Us:LinkedIn: https://www.linkedin.com/company/wall-street-prep/  Instagram: https://www.instagram.com/wallstreetp...Podcast Resources:J.P. Morgan & Allen & Co’s Fairness Opinion: https://felix.fe.training/filing/document.php/?hid=69a18f03a63c5Time Stamps: Overview: 0:37 - 5:41Which Bid is Better for WBD Shareholders? (Valuation): 05:43 - 13:18What Would Have Made Netflix Preferable?: 13:19 - 16:10The Mechanics of the Deal: 16:52 - 21:00Political Lobbying, Financing, Creative Industry Support: 21:01 - 23:20J.P. Morgan's & Allen & Co's Valuation (Fairness Opinion): 23:21 - 26:16Is This a Good Deal or is Paramount Overpaying? 26:17 - 36:25DISCLAIMER: The information provided in this video is for educational and entertainment purposes only and does not constitute financial, investment, tax, or legal advice. Investing involves risk, and you may lose some or all of your capital. Past performance is not indicative of future results. Please conduct your own due diWTBD Newsletter: https://webmail.wallstreetprep.com/whats-the-big-dealFollow Us On Socials:LinkedIn: https://www.linkedin.com/company/wall-street-prep/Instagram: https://www.instagram.com/wallstreetprep/Resources: https://linktr.ee/wallstreetprep