Investment Banking Simulation

Teach the investment banking deal process

Students apply DCF valuation, debt financing, derivatives, and deal advisory across the 20-year lifecycle of two companies, taking on different roles including lenders, buy-side advisors, and sell-side advisors.

16 - 32-hour team-based simulation
20-year company life-cycle
In-class, online or hybrid delivery

A capstone for investment banking and corporate finance

Use one simulation to connect the topics students often study separately, from financial statement analysis and DCF valuation to financing, advisory and deal execution.

Core syllabus coverage

Financial statement analysis, DCF valuation, debt financing, derivatives, buy-side advisory and sell-side advisory.

Four-round progression

Roles change as the companies move through financing, acquisition, sale and later-stage work.

Assessable team outputs

Models, Approval Memoranda, financing terms, Enterprise Value bids and final results.

At a glance

Duration

16 - 32 hours

Deliver intensively across four days or divide the work into 4, 8 or 12 sessions.

Format

Web-based, team-based, four rounds

Teams work through linked rounds with changing transaction responsibilities.

Level

UG, PG and MBA

Use the simulation across undergraduate, postgraduate and MBA finance teaching.

Course fit

Investment Banking and Corporate Finance

Fits modules in investment banking, corporate finance and valuation, capital markets, private equity and financial modelling.

Prerequisites

Basic finance and DCF knowledge

Students should understand basic finance and discounted cash flow valuation.

Delivery

Classroom, online or hybrid

The web-based simulation supports in-person, virtual and blended delivery.

Optional assessment

Use team outputs as evidence

Use team inputs, models, approval memoranda and platform results as evidence.

Professor tools

Dashboard included

Player management, admin guidance, automated timing and live monitoring are built in.

How the investment banking simulation connects the deal processes

Across four rounds, students work through debt financing, derivatives, buy-side and sell-side advisory, fairness opinions and restructuring. By taking on different transaction roles, they see how financial analysis, valuation, financing terms and risk decisions interact across the lifecycle of a company.

Investment Banking simulation gameflow and stages

1. Round 1:

Intro - 10 minutes:

Students watch the opening briefing and review the simulation context, activities, responsibilities and performance objectives.

Debt Capital Markets - 3 hours:

Lender teams propose debt packages for Frametastic and Star Hotel using debt amount, interest premium, security and covenant terms. PE firm teams begin the financial models for both companies, complete the required assumptions and calculate enterprise values to support their acquisition bids.

Buy-Side Advisory - 1 hour:

PE firm teams review the submitted debt packages and select a preferred financing provider for each company. They update their models with the selected terms, complete their valuations and submit final enterprise-value bids. PE firm and lender teams upload their completed models.

Outputs - 30 minutes:

Teams review the leaderboard, acquisition-financing outcomes and performance feedback for the round.

2. Round 2:

Intro - 10 minutes:

Students receive the next-round briefing and review their updated responsibilities.

DCM and Derivatives - 4 hours:

Lender teams prepare more detailed debt packages covering debt amount, interest premium, leverage covenant, maturity, amortisation, prepayment, guarantees, security and any currency-hedging condition. Teams providing derivatives solutions prepare offers covering position, amount, exchange rate and Credit Support Annex. PE firm and lender teams continue their financial modelling and prepare Approval Memoranda. Sell-side teams prepare company pitches, conduct roadshows, manage the Data Room and respond to information requests.

Buy-Side Advisory - 2 hours:

PE firm teams review the available debt and derivative packages, select counterparties and update their financial models. They complete their valuations, submit final enterprise-value bids and upload their models and Approval Memoranda. Sell-side teams continue responding to enquiries and may review incoming bids as they develop.

Outputs - 30 minutes:

Teams review the leaderboard, acquisition-financing results and performance feedback before the next round begins.

3. Round 3:

Intro - 10 minutes:

Students receive the third-round briefing and prepare for a broader combination of transaction responsibilities.

All Services - 6 hours:

Teams work across debt capital markets, derivatives, buy-side advisory, sell-side advisory, acquisition and divestiture activities. They continue modelling, prepare Approval Memoranda, conduct roadshows, manage company information, review financing, select counterparties, submit bids and complete the required transaction inputs.

Outputs - 30 minutes:

Teams review the leaderboard, acquisition-financing results and role-specific performance information.

4. Round 4:

Intro - 10 minutes:

Students receive the final-round briefing and prepare to consider transaction fairness, financial distress and competing creditor claims.

All Services - 5 hours:

Teams prepare fairness opinions for Frametastic and Star Hotel using an FCFF-based DCF approach. They also negotiate a debt restructuring for Eco Frames. Each restructuring group includes a first-lien creditor, a second-lien creditor and an equity owner.

5. Outputs: End of Simulation - no time limit:

Students review the final leaderboard, restructuring negotiation status, Fairness Opinion Summary and PE Dynamics results.

Why professors use it

Use one simulation to connect valuation, financing and advisory teaching.

Map directly to the syllabus

Students apply financial statement analysis, DCF valuation, debt financing, derivatives, buy-side advisory and sell-side advisory in one connected exercise.

Make model outputs matter

Forecasts, valuation inputs and financing terms determine the offers teams make, the counterparties they choose and the Enterprise Value bids they submit.

Produce evidence for comparison and debrief

Compare teams with similar responsibilities, then use their models, Approval Memoranda, inputs and results to discuss why their decisions differed.

See how the simulation supports delivery and student work

The Admin Panel supports setup, timing and monitoring. The Student Interface guides teams from their mission and task list to decision inputs and final results.

Control the transaction timeline

Configure the stage timings across the four rounds and use Play, Pause, Stop and Adjust to manage the session.

Access guidance inside the dashboard

Open the Setup and Facilitation guide, Teaching Notes and Gameflow Diagram from the Admin Guide.

Monitor decisions

Across the four rounds, use Live Monitoring to review current inputs and identify where neutral clarification may be useful.

Case materials students work with

Students work with company background, historical financials, management forecasts, existing financing and transaction context. They use the evidence to forecast performance, complete DCF valuations, structure financing and support bids.

Frametastic Information Memorandum

Frametastic is a German manufacturer and distributor of window and door frames. Students use its company background, previous acquisition and existing Term Loan B to support forecasts, financing terms and valuation. Company background, previous acquisition and existing financing.

Star Hotel Information Memorandum

Star Hotel is an Italian discount hotel chain. Students use its operating profile, previous acquisition and existing Term Loan B to support forecasts, financing terms and valuation. Company background, acquisition history and existing leveraged financing.

11 mins

Student Intro Video

Students watch a short video introducing the simulation, their role, objectives and the key decisions they will make during the various transactions.

Use team outputs as optional assessment evidence

Assessment is optional. You may run the simulation as an ungraded capstone or use team models, approval memoranda, transaction inputs and platform results within a wider assessment.

The leaderboard should support, not replace, academic judgement.

What professors can assess

• Financial modelling and DCF valuation
• Role-based performance

How to interpret the results

• Compare teams with the same responsibilities
• Review submitted work alongside the platform score

What professors can assess:

Financial modelling and DCF valuation: Review forecasts, normalisation adjustments, Equity Value, Enterprise Value and the consistency of final bids with the model.
Buy-side and sell-side role performance: Review how teams pursue their assigned objective, respond to counterparties and use new information.
Optional individual assessment report: Students may be asked to submit a short written report outside the platform once they have reviewed and reflected on their scores. This is not automatically captured or graded by the simulation.

How to interpret the results:

Compare teams with the same responsibilities: Role objectives differ, so compare lender teams with lenders, PE firms with PE firms and sell-side teams with sell-side teams first.
Review submitted work alongside the platform score: Use the leaderboard alongside models, Approval Memoranda, inputs and transaction outcomes.

Set up the transaction and let the simulation run

The Admin Panel supports setup, automatic progression and selective intervention. You can run the simulation intensively or pause and resume it across multiple sessions.

Step 1

Set up participants, teams and roles

Add participants through Player Management, organise teams and confirm access before the timed activity begins.

Step 2

Set the round timings

Review the four-round structure and adjust stage durations to fit the planned teaching schedule.

Step 3

Start, pause, stop and resume

Press Play to begin automatic progression. Use Pause for extra working time or clarification, and Stop when delivery must be suspended more fully.

Step 4

Monitor selectively and prepare the debrief

Use Live Monitoring to review inputs and decision tables. Ask teams to explain assumptions or inconsistencies without directing them towards a preferred answer.

Professor Resources

Everything needed to prepare, run and debrief the Investment Banking Simulation is organised within the resources below.

Financial Statement Analysis
Discounted Cash Flows
Debt & Equity Financing
Financial Modelling
Company Valuation
Derivatives

Round 1

Calculate the NPV and IRR of a project
Analyze the role of debt and equity in a firm’s capital structure
Define Discounted Cash Flows
Discuss relative valuation techniques among comparable companies
Create a framework for choosing the appropriate valuation techniques
Describe the purpose and framework for analyzing financial statements – Income Statement, Balance Sheet and Cash Flow Statement
Compare financial statements of different companies
Understand what a capital structure is, why it is important to businesses, and if changes to the structure can enhance shareholder value considering the risks associated with those changes

Round 2

Calculate the levered free cash flow and understand its sensitivity towards certain variables
Derive the Enterprise Value by adding net debt from Equity Value
Explain how companies can manipulate P&L items to boost earnings
Recognize the importance of ratio analysis
Understand why management and advisors are overly optimistic
Explain the role of covenants in lending agreements and describe the main covenants encountered in leveraged loans
Explain how collateral and other types of security affect risk in leveraged loans
Discuss current trends in corporate finance transactions
Explain why derivative instruments can reduce risk and therewith are able to lower financing costs

Round 3

Discuss the merits of pursuing acquisitions, mergers and divestitures
Identify the risks inherent in each type of corporate transaction for different stakeholders
Apply business judgment when working on financial procedures and formulas
Explain Risk Management and corporate governance processes at financial institutions
Describe the role of Environmental, Social and Governance (ESG) in corporate governance and decision making for investment firms as well as for corporates
Understand the key components of widely adopted Risk Management frameworks (interest rate, market, credit and liquidity risk)
Recognize different types of transactions and typical deal structures, including financing terms, commitments and contingencies

Round 4

Understand what WACC is, how it should be calculated, and why it matters to firms
Explain why WACC is used to discount a company’s unlevered free cash flow
Use the CAPM to the derive the cost of equity
Discuss the role of auditors and the various opinions available
Recognize the roles, responsibilities and conflicts of different Investment Banking and Capital Markets teams such as Origination, Structuring and Syndication
Understand financial distress and the perspectives / incentives of creditors, management and equity owners
Explain how contractual and structural subordination affect credit risk
Discuss creditor and equity owner rights during a restructuring and bankruptcy
Define events of default and describe possible responses to technical and payment default, including waivers, amendments, hair cuts, debt to equity swaps and liquidation

Creators of the Investment Banking Simulation

These industry professionals were involved in the inception, creation, development, testing and optimisation of the simulation.

Investment banking, capital markets, PE, and corporate ratings experience at Morgan Stanley, S&P, and HPS Investment Partners. Holds a PhD in Quantitative Finance.

Gerhard Wörtche

Senior investment banker at Morgan Stanley with experience in M&A and TMT coverage across New York and San Francisco. Studied business at Kellogg.

Bharat Venugopal

Former Practice Specialist in McKinsey’s Corporate Finance team in Germany and Finance professor at Aberdeen University.

Gerhard Kling

Corporate finance experience across M&A, structured finance, credit risk, and leveraged finance at Morgan Stanley, SMBC, and Citi. Holds a BSc in Economics.

Georgi Naydenov

Worked in the finance department of Precomp Tools. Studied Engineering and holds an MSc in Corporate Finance from Bayes.

Aatmay Upponi

FAQs

The four rounds connect topics that students often study separately. Teams begin with financial statement analysis, DCF valuation, debt financing and acquisition bidding before progressing to derivatives, sell-side advisory, buy-side advisory, fairness opinions and debt restructuring. The companies and transaction responsibilities develop across a 20-year business lifecycle, so students must apply earlier analysis to increasingly complex situations rather than complete a series of unrelated exercises. This makes the simulation particularly suitable as a capstone for Investment Banking, Corporate Finance, Valuation or Financial Modelling courses.

The simulation shows that a financing structure must be evaluated across the life of a company rather than only at the point when a deal closes. Earlier rounds ask students to assess debt capacity, structure financing, select counterparties and support acquisition bids. In the final round, students confront financial distress through Eco Frames, where first-lien creditors, second-lien creditors and equity owners negotiate a restructuring. Professors can use this progression to discuss how leverage, security, contractual priority and earlier financing choices affect stakeholder rights and recoveries when performance deteriorates.

Financing terms and market risks can affect the affordability and structure of the same transaction. In Round 2, lender teams prepare detailed debt packages covering factors such as debt amount, interest premium, maturity, amortisation, covenants, guarantees and security. Teams providing derivatives solutions may also propose currency-hedging terms, including the position, amount, exchange rate and Credit Support Annex. PE teams must evaluate these packages together before selecting counterparties, updating their models and submitting Enterprise Value bids. This helps professors demonstrate that risk management is part of transaction structuring rather than a separate theoretical topic.

A fairness opinion requires students to use valuation analysis to evaluate whether the financial terms of a proposed transaction are reasonable from a specified stakeholder perspective. In the final round, teams prepare fairness opinions for Frametastic and Star Hotel using an FCFF-based DCF approach. Professors can review whether the conclusion is consistent with the forecasts, WACC, terminal-value assumptions and resulting valuation range. The exercise therefore moves students beyond calculating Enterprise Value and asks them to communicate and defend what the valuation means for a live transaction.

Teach the investment banking deal process

A capstone for investment banking and corporate finance

Core syllabus coverage

Four-round progression

Assessable team outputs

At a glance

16 - 32 hours

Web-based, team-based, four rounds

UG, PG and MBA

Investment Banking and Corporate Finance

Basic finance and DCF knowledge

Classroom, online or hybrid

Use team outputs as evidence

Dashboard included

How the investment banking simulation connects the deal processes

Why professors use it

Map directly to the syllabus

Make model outputs matter

Produce evidence for comparison and debrief

See how the simulation supports delivery and student work

Control the transaction timeline

Access guidance inside the dashboard

Monitor decisions

Follow the mission and required actions

Submit transaction inputs and deliverables

Review outcomes and performance

Case materials students work with

Frametastic Information Memorandum

Star Hotel Information Memorandum

Student Intro Video

Use team outputs as optional assessment evidence

What professors can assess

How to interpret the results

Set up the transaction and let the simulation run

Set up participants, teams and roles

Set the round timings

Start, pause, stop and resume

Monitor selectively and prepare the debrief

Professor Resources

Creators of the Investment Banking Simulation

Gerhard Wörtche

Bharat Venugopal

Gerhard Kling

Georgi Naydenov

Aatmay Upponi

FAQs

Teaching fit

Simulation delivery

Roles and simulation structure

Results, assessment and support

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