This case is about FINANCIAL MANAGEMENT
PUBLICATION DATE: July 09, 1996
Donaldson, Lufkin & Jenrette, 1995 Abridged V. 1.3 Case Solution
The firm approached the pricing job using the method of similar multiples. The case gives ample information on valuation multiples of peer firms. A key point of appraisal is to choose which business segment DLJ competes in that an appropriate multiple may be chosen. The case also describes the equity-underwriting procedure in detail. It presents a rich range of industry tips, affording an opportunity to discuss forces of change in the investment-banking business. This case is an abridgement of the A (F1145) and B (F-1146) instances, which might be taught alone or together. Taught collectively, they’d typically require two class periods.