K234-ind-ny - Investment Banking Applications

15 Questions | Total Attempts: 171

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K234-ind-ny - Investment Banking Applications - Quiz

Please complete the following self-assessment quiz - Test your own knowledge but if necessary please refer back to the training materials, manuals and/or other relevant resources to complete the questions


Questions and Answers
  • 1. 
    What is the main difference between a teaser and a Confidential Information Memorandum (CIM)?
    • A. 

      They are the same thing

    • B. 

      A teaser is not as detailed as a CIM, which contains financial information and projections

    • C. 

      A CIM is not as detailed as a teaser, which contains financial information and projections

    • D. 

      A CIM provides information, while a teaser is a legally binding contract

  • 2. 
    An Investment Bank is generally divided into industry coverage and product coverage groups. Product coverage groups focus on specific sectors, such as healthcare, industrials or technology. True or False?
    • A. 

      True

    • B. 

      False

  • 3. 
    Which of the following are among the main services offered by Investment Banks? Mark the four options that apply.
    • A. 

      FICC services (fixed income instruments, currencies and commodities)

    • B. 

      Low-value savings accounts

    • C. 

      Assist/advise Mergers & Acquisitions

    • D. 

      Residential home loans

    • E. 

      Trading derivatives and equity securities

    • F. 

      Assist individuals, corporations or governments in raising capital

  • 4. 
    When will an Investment Bank prepare a Teaser and Confidential Information Memorandum for a client?
    • A. 

      For a sell-side deal

    • B. 

      For a buy-side deal

  • 5. 
    Mergers & Acquisitions (M&A) are a service offered by Investment Banks, and a key area that IBISWorld can help with. Which of the following steps in the M&A process does IBISWorld generally have the greatest impact on? Mark all four that apply.
    • A. 

      Sign confidentiality agreement

    • B. 

      Prepare Confidential Information Memorandum

    • C. 

      Conduct due diligence

    • D. 

      Submit indication of interest

    • E. 

      Prepare, send/receive teaser

  • 6. 
    Which of the following position types do we target when prospecting an Investment Bank? Mark all five that apply.
    • A. 

      Research Analysts

    • B. 

      Associates

    • C. 

      Head of Research

    • D. 

      Home Loan Specialists

    • E. 

      Partners/Managers

    • F. 

      Library/Knowledge Managers

  • 7. 
    Sell-side Merger & Acquisition tends to be more "generalist" than buy-side, in which an industry specialist is often used. True or False?
    • A. 

      True

    • B. 

      False

  • 8. 
    IBISWorld has been a platinum sponsor of several organizations related to Merger & Acquisition activity. Which of the following is not one of them?
    • A. 

      Association for Corporate Growth

    • B. 

      Commercial Finance Association

    • C. 

      Alliance of Merger & Acquisition Advisors

    • D. 

      Risk Management Association

  • 9. 
    Complete this sentence: IBISWorld Industry Reports can help Investment Banks with Target Short Listing, particularly by identifying profitable industries or those with short-term _ _ _ _ _ _ _ _.
  • 10. 
    IBISWorld Industry Reports can help Investment Banks by providing unbiased research to benchmark against for valuation. Where is this most useful?
    • A. 

      Target Short Listing

    • B. 

      Pitch Book and CIM

    • C. 

      Due Diligence and Deal Closure

    • D. 

      Business Valuations

  • 11. 
    Which of the following are key questions that help us understand the needs of investment banks? Mark all three that apply.
    • A. 

      Where do you get the industry piece for your pitch books?

    • B. 

      What sources do you use for first-stage research?

    • C. 

      Are you interested in pursuing consulting assignments outside your key market sectors?

    • D. 

      How do you prepare for face-to-face meetings?

  • 12. 
    Which IBISWorld Industry Report sections is likely to be used by Investment Banks in the following application:"Used in buy-side and sell-side transactions - e.g. to ensure they are across each key player in the industry for the purposes of competitive bids mandated by ‘financial sponsors.’"
    • A. 

      Industry at a Glance

    • B. 

      Operating Conditions

    • C. 

      Industry Outlook

    • D. 

      Major Players

  • 13. 
    What is generally the best way to respond to a prospective Investment Bank client when they say that they only look at a few industries per year?
    • A. 

      "We don't expect you to read 700 reports, but the ability to understand supply chains and industry interaction is vital to putting an industry in context."

    • B. 

      "We add value with our revenue and profit forecasts, allowing an independent estimate of future value."

    • C. 

      "First Research meets certain needs, but is designed for sales teams. IBISWorld is more tailored to investment banks."

    • D. 

      "We cannot tell you if a specific company will be successful, but we can tell you what is takes to make a successful company in a given industry."

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