The Art and Science of Finance

After interning in New York City this past summer, I was fortunate enough to receive a full-time offer to be an investment banking analyst starting in August 2020. The role is focused on mergers and acquisitions in the financial institutions' space (insurance, banks, asset management, etc.). To best prepare myself for the role, I decided to take a class this Spring related to mergers and acquisitions. The course is designed for TCU MBA students, but they allowed several undergraduates to take the class. I thought that surrounding myself with professionals would promote intellectual growth and give me knowledge regarding real-world experiences.

My internship this past summer gave me great insight into the investment banking industry. Although I have heard a lot about the industry as I prepared for my interviews, I never fully grasped the role and responsibilities of an investment banking analyst. It was indeed an experience I had to do myself and could not merely read about it. There are so many nuances in the industry, and it helped me realize that most jobs I have in the future will rely on my ability to learn on the job.

My Mergers & Acquisitions class has proved to be a worthwhile experience thus far. Several of the MBA students have had experiences in valuation services and the private credit space that provide light on many scenarios that I have not had the opportunity to work on yet. Each week we are assigned multiple "cases" to analyze and prepare responses to a given financial transaction. For example, we did a case regarding the potential acquisition of Pixar by Disney. We read the background information regarding the two companies and perform analysis to come to an opinion regarding the possible financial transaction. Each class period is entirely discussion-based and provides tremendous insights into others' points of view regarding the scenario. It is an excellent experience to hear the opinions of many well-informed MBA students regarding various financial transactions and financial structures for the transactions.

One of the most exciting aspects of finance is that it is both an art and a science. The MBA students have provided great insight into this industry. Although the numbers may show one story, the intangible aspects of a financial transaction may offer more insight into whether the project is or is not a good idea. Often, a financial transaction may be a great idea on paper. Yet, it may not be an excellent idea execution wise. One of the difficulties surrounding the acquisition of Pixar by Disney was the drastic differences in company cultures.

Furthermore, the financials of the transaction described the transaction in a negative light. However, the class concluded that Disney would lose market share without partnering with Disney and made the most sense for Disney to make the acquisition of Pixar. As we know, Disney did, in fact, acquire Pixar in real-life, and it has been one of Disney's most successful partnerships since inception.

The learning experiences I have had in this M&A class in a few short weeks have provided me great insight into the mergers and acquisition space. I have learned from MBAs, and the other undergraduates in this class as people viewed the transaction from a different perspective than my own. By hearing these perspectives, I have been able to recognize my own biases and better analyze cases in the future. I hope to further my knowledge surrounding the M&A (mergers and acquisitions) space to best prepare myself for my future role as an investment banking analyst.

Counter-Stereotypical Hysterics

After spending three years living on campus at TCU, I ventured my way off campus by living with six other guys in a house behind the Bluebonnet circle. Although it is impossible to be productive at home, I have enjoyed the many laughable moments at our home. I would consider the guys living in my house as six of my closest friends. We have spent countless hours together not only this year but also the years before this one.

Chris has become one of my closest friends this year. We share a lot of commonalities in terms of post-grad plans and interests. Living so close to him has helped us grow very close. Many of my favorites memories from college are staying up late and talking to him about life, the future, goals, and relationships.

After getting to know him well, I have learned so much about him as a person. He is full of compassion, yet is incredibly light-hearted. To give some background, he has been very successful at TCU as he was the previous president of NLP and a Mr. TCU finalist. Additionally, he has continued to do long-distance with his girlfriend from high school. He and his girlfriend are from California. She currently attends Stanford University. Chris frequently comments on being waitlisted at Harvard to compensate for his inferiority relative to his girlfriend’s success at attending a more “prestigious” university.

A moment of uncontrollable laughter occurred during one of the weekends that his long-distance girlfriend came to visit. His girlfriend’s name is Lauren, and she recently accepted a job at Bain & Company consulting job in Dallas to be close to Chris post-graduation as he took a job at Goldman Sachs in Dallas as well. Both of these companies are well-regarded in the financial industry. Although to those who know the industry well, Lauren’s position as a consultant relative to Chris’s role of being a private wealth manager is slightly elevated. As close friends of Chris, my roommates and I are aware of his slight insecurity relative to his girlfriend’s success at Stanford and getting an incredible post-grad job (not to mention, she is two inches taller than him).

One night, five of the roommates were hanging out in the living room of our humble abode, enjoying conversation alongside Chris’s girlfriend, Lauren. Chris made a remark, giving his girlfriend for loving him too much to consider moving away to California to Dallas. It was remarkable. Who chooses to leave California for Dallas? The weather alone should be a reason enough to stick around in California. As Chris’s ego was boosted with his girlfriend committing to living near him post-grad, she wittily replied: “Chris, don’t forget that I’m making more money than you.”

Naturally, my roommates and I burst into hysterics. Chris’s taller girlfriend emasculated him in front of his closest friends. It’s stereotypical for the male of the home to be the “breadwinner” of the household, so it was hilarious to hear his girlfriend counterstereotype the situation. Her height and her wittiness brought great joy to the roommates and me. Even Chris himself could not hold back laughs. His girlfriend called him out in front of his friends, which takes a lot of guts. We all appreciated the jest.

Following this incident, we have continued to give Chris grief regarding this situation. Chris himself is very successful, but the witty remark by his girlfriend put him back in his place. Thinking of this situation continues to bring me joy. It is quite humorous for your friend to get called out by his girlfriend, especially regarding such a stereotypically opposite scenario. All of the roommates are thankful for Lauren’s humor and wit.