RS 401 · Level 400 · Advanced

Investment Banking: Deals

Name: RS 401 Investment Banking: Deals
Author: Elizabeta Dimoska

This course explains how companies raise capital and how they are bought, sold and restructured, from the banker’s side of the table. It is the capstone of the advanced tier. This free course by Elizabeta Dimoska runs to ten modules and about 20 study hours.

The Lower Manhattan skyline and Financial District seen from New York Harbor

Photo: Jakub Hałun, CC BY-SA 4.0, via Wikimedia Commons (cropped).

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What you'll be able to do

Describe what each part of an investment bank does and how it is paid.
Follow an IPO, a follow-on, a bond issue and a leveraged loan from mandate to closing.
Run a sell-side M&A process on paper.
Calculate an exchange ratio, a premium and deal multiples.
Build an accretion and dilution analysis.
Explain private equity economics.
Work through a recovery waterfall in a restructuring.

Before you startPrerequisite: RS 301 Financial Modeling and Deal Valuation, RS 203 How the Securities Industry Works. Tools used: the learner’s RS 301 model, deal press releases, prospectuses and merger circulars from SEDAR+ and EDGAR.

How this course worksEach module has objectives, the lesson with worked examples, a practice mission using a real filing, a RiskStock tool or a spreadsheet, and a quiz. Pass a module quiz with 75% to mark it complete; quizzes can be retaken as often as you like. When the modules are done, complete the capstone and the 20-question final exam (pass mark 70%, one retake every 24 hours). Passing both unlocks a certificate of completion, and completing all nine university-level courses earns the Advanced Diploma. Everything is saved in your browser; no account is needed.

The syllabus

Ten modules and about 20 study hours in all: short, dense lessons (about 65 minutes of reading), then the worked problems, practice missions, quizzes and the capstone.

What investment banks do Advanced

Describe the structure of an investment bank, its products and its fees.

~6 min read · ~2 hr with practice

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The IPO in depth Advanced

Follow the IPO timeline, calculate proceeds and ownership, and explain stabilization.

~6 min read · ~2 hr with practice

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Follow-on offerings and equity-linked securities Advanced

Compare the ways a listed company raises equity and calculate rights and convertible terms.

~6 min read · ~2 hr with practice

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Debt capital markets and leveraged finance Advanced

Explain how bonds and loans are structured, priced and rated, and estimate debt capacity.

~6 min read · ~2 hr with practice

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M&A part 1, rationale and process Advanced

Evaluate the reasons for a deal and describe the sell-side and buy-side processes and takeover defences.

~6 min read · ~2 hr with practice

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M&A part 2, structure, terms and approvals Mastery

Calculate deal value, premium and exchange ratio, and explain the main contract terms and approvals.

~8 min read · ~2 hr with practice

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Accretion and dilution analysis Mastery

Calculate the effect of an acquisition on the buyer’s earnings per share and explain what the result does and does not mean.

Video 4:03~6 min read · ~2 hr with practice

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Private equity and leveraged buyouts Mastery

Explain how a private equity fund is structured and paid, and how buyouts create returns.

~7 min read · ~2 hr with practice

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Restructuring and distressed situations Mastery

Describe out-of-court and court-supervised restructurings and calculate recoveries under absolute priority.

~7 min read · ~2 hr with practice

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Analysing a deal from start to finish Mastery

Apply a complete framework to a live deal, read deal documents and understand merger arbitrage and professional ethics.

~7 min read · ~2 hr with practice

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After the modulesThe capstone project → When you're readyFinal exam & certificate →

Your notes

Every note you take in a module collects here. They're stored only in this browser, so export them to keep them.

Common questions

Is RS 401 really free?

Yes. All ten modules, the quizzes, the capstone, the 20-question final exam and the certificate are free and need no sign-up. Your progress, scores and notes are saved privately in your own browser.

What should I know before starting?

The suggested prerequisite is RS 301 Financial Modeling and Deal Valuation, RS 203 How the Securities Industry Works. This is a 400-level course and assumes those courses: the modules move quickly and use their terms without re-explaining them.

How long does it take?

About 20 study hours. The reading itself is short and dense, about 65 minutes; most of the time goes on the worked problems, the practice missions, the quizzes and the capstone.

Is the course for Canadian or US investors?

Both. Where rules, terms or tax treatment differ between Canada and the United States, the module says so and names both versions.

Is the certificate a professional qualification?

No. It is a certificate of completion from a free educational course. It is not a licence, an accreditation or a professional designation.

Who wrote this course?

It was written by Elizabeta Dimoska, founder and writer of RiskStock. RiskStock is educational and is not a registered dealer or adviser.

Keep learning

Educational content only — not investment, tax or legal advice. Companies, tickers and figures in this course are illustrative examples, not recommendations to buy or sell any security. Regulatory figures, limits and tax rules change; confirm current details with the regulator or tax authority. Worked examples are not forecasts. RiskStock is not a registered dealer or adviser, and its certificates are certificates of completion, not licences. Course written by Elizabeta Dimoska.