Search Results for: valuation

Deal Structuring in Investment Banking: How Earn-Outs, Rollover Equity, and Contingent Consideration Shape M&A Outcomes

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In this article, Ian DI MUZIO (ESSEC Business School, Master in Finance, 2025–2027) examines how investment banks structure consideration in M&A deals through earn-outs, rollover equity, and other forms of contingent consideration, and how these tools redistribute risk and return between buyer and seller. Context and objective In most introductory valuation courses, M&A is presented … Read more

My Internship Experience as an Investment Intern at Kylin Hall Capital

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In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) shares his professional experience as an Investment Intern at Kylin Hall Capital. About the company Kylin Hall Capital is a Beijing-based venture capital firm investing in early- to growth-stage technology companies in China. The firm focuses on … Read more

“Investing is stupid if you’re more worried about short-term volatility than long-term quality.” – Charlie Munger

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Investing is often a battle with our own emotions. We see prices rise sharply and crash just as fast, and this can lead to very bad investment decisions. However, Charlie Munger’s wisdom comes once again handy, to remind us to avoid overlooking at prices all day-long, because “Investing is stupid if you’re more worried about … Read more

“The market is a continuously unfolding process of discovery.” – Peter Steidlmayer

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Financial markets move every second, reacting to every new piece of information, every financial statement, every geopolitical event. Prices rise, fall, move too far, come back again, and for anyone observing from the outside, this constant motion can easily appear chaotic. Yet, behind this apparent disorder lies a deeper structure, a logic shaped by the … Read more

“The stock market is designed to transfer money from the impatient to the patient.” – Warren Buffett

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Financial markets move with a constant rhythm, shaped by news, expectations, and the psychological impulses that influence investors every day. Prices advance, decline, accelerate suddenly, or pause without warning, and to the untrained observer this flow can seem arbitrary or even irrational. This can make it hard for investors to resist the urge of buying … Read more

From IAS to IFRS: How International Accounting Standards Shape Financial Reporting

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In this article, Maxime PIOUX (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2022-2026) explains the importance of international accounting standards and highlights the key differences that finance and business students should be aware of. Why International Accounting Standards Financial statements are the primary source of information used by investors, managers, and other … Read more

Beyond price: The wisdom of Warren Buffett and Napoleon Hill on investment and self-growth

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In this article, Mathilde JANIK (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2025) comments on two quotes that bridge the gap between financial philosophy and personal development: one from the world’s most successful investor, Warren Buffett, and another from the self-help pioneer, Napoleon Hill. These quotes collectively highlight the profound truth that success … Read more

Leverage in LBOs: How Debt Creates and Destroys Value in Private Equity Transactions

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In this article, Ian DI MUZIO (ESSEC Business School, Master in Finance (MiF), 2025–2027) explores the economics of leverage in leveraged buyouts (LBOs) from an investment banking perspective. Rather than treating debt as a purely mechanical input in an Excel model, the article explains—both conceptually and technically—how leverage amplifies equity returns, reshapes risk, affects pricing, … Read more

Quantifying the Gap: Why AI Productivity will fail to Move the Market

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In this article, Andrei DONTU (ESSEC Business School, Global Bachelor in Business Administration (GBBA) 2025-2026) explains the gap between the productivity gains and the unrealized returns of the investors regarding the investments in AI. Introduction In the current market landscape, “Artificial Intelligence” has become the magic word used to justify almost any valuation. The narrative … Read more

Modeling Asset Prices in Financial Markets: Arithmetic and Geometric Brownian Motions

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In this article, Saral BINDAL (Indian Institute of Technology Kharagpur, Metallurgical and Materials Engineering, 2024-2028 & Research assistant at ESSEC Business School) presents two statistical models used in finance to describe the time behavior of asset prices: the arithmetic Brownian motion (ABM) and the geometric Brownian motion (GBM). Introduction In financial markets, performance over time … Read more

Understanding WACC: a student-friendly guide

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In this article, Daniel LEE (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2023-2027) explains the Weighted Average Cost of Capital (WACC). Introduction The Weighted Average Cost of Capital (WACC) is one of the most important concepts in corporate finance and valuation. I know that for some students, it feels abstract or overly … Read more

Understanding the Almgren-Chriss Model for Optimal Trade Execution

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In this article, Bryan BOISLEVE (CentraleSupélec – ESSEC Business School, Data Science, 2023-2025) explains the Almgren-Chriss model, a fundamental framework in quantitative finance for optimal execution of large trading orders. Introduction Imagine you are a portfolio manager at a large asset management firm, and you need to sell 1 million shares of a stock. If … Read more

EBITDA: Uses, Benefits and Limitations

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In this article, Alberto BORGIA (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange student, Fall 2025) explains about EBITDA, how it can be used, its advantages and disadvantages. Introduction Earning Before Interest, Taxes, Depreciation and Amortization (EBITDA) is ones of the most used financial metric and its goal is to understand a company’s … Read more

My Experience as a Wealth Management Intern at Nextam Partners

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In this article, Alberto BORGIA (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange student, Fall 2025) shares his professional experience as a Wealth Management Intern at Nextam Partners. About the company During the summer between my second and third year of my Bachelor’s degree, I had the opportunity to join the Nextam Partners … Read more

How to approach a stock pitch

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In this article, Daniel LEE (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2023-2027) explains how to approach a stock pitch. Introduction Are you preparing for an interview for investment banking? Hedge fund? Or just participating in a finance competition? Learning how to realize a stock pitch is one of the most useful … Read more

Implied Volatility and Option Prices

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In this article, Saral BINDAL (Indian Institute of Technology Kharagpur, Metallurgical and Materials Engineering, 2024-2028 & Research assistant at ESSEC Business School) explains how implied volatility is calculated or extracted from option prices using an option pricing model. Introduction In financial markets characterized by uncertainty, volatility is a fundamental factor shaping the pricing and dynamics … Read more

The Private Equity Secondary Market: from liquidity mechanism to structural pillar

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In this article, Adam MERALLI BALLOU (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2026) introduces the Secondary Market in Private Equity. Introduction Over the past decade, the private equity secondary market has undergone a profound transformation. Originally conceived as a marginal liquidity outlet for constrained investors, it has progressively become a central component … Read more

My internship experience as a Finance Intern at Gerresheimer

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In this article, Tibor HAUER (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange semester 2025) shares his professional experience as a Finance Intern at Gerresheimer. About the company Gerresheimer is a globally operating partner for the pharmaceutical, biotech and cosmetics industries and plays an important role in the international healthcare value chain. As … Read more

Risk-based Audit : From Risks to Assertions to Audit Procedures

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In this article, Iris ORHAND (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2026) shares a technical article about risk-based audit. Introduction Financial statements are not audited by “checking everything”. In practice, auditors use a risk-based approach: they identify what could materially go wrong, link those risks to specific financial statement assertions, and then … Read more