Sunday, 17 April 2016

John Haag - Three Basic Investment Banking Concepts

John Haag has been a financial advisor, a turnaround manager, and a business leader for almost 30 years. He is a Managing Partner for the firm CallisterHaag, which works with companies to help them through difficult transitions, invest wisely, and secure investments themselves. Haag has many connections in the financial sector and has worked with a great many clients to help them find the best solutions to their problems and stay on track and abreast of their goals. He has extensive experience in investment banking. Here are three basic concepts he has learned over his long career:
  • Corporate valuation. There are three ways to value a company for a potential investment. One of the most common ways investment bankers do this is discounted cash flows, which, as John Haag has done many times, involves creating a free cash flows forecast of a company and discounting them with the weighted average cost of capital.
  • Balance sheet. This is one of the main ways that investment bankers value a company. They get their information from this sheet as well as the income statement and cash flow statement. John Haag has worked with investors to weigh the figures on these statements many times.
  • Multiples. Another way to value a company before an investment, multiples involves metrics very similar to profits and earnings ratios. This is used to determine stock prices and other indicators of corporate worth.
John Haag has been working in investment banking and venture capital investments for many years and knows how to value companies and corporations.