Written by: Seth Myers
Hey guys! I’d first like to say thank you to everyone for keeping up with my blogs and interjecting your witty comments. It’s comforting to see such strong support!
As I’ve stated in past blogs, I am currently working with the Corporate Finance Consulting group for Duff & Phelps.
The group is divided up into a number of different areas comprised of such practices as Due Diligence, Financial Engineering, Strategic Modeling, Strategic Finance, and, the group that I am working for, Portfolio Valuation (PV). The practice of Portfolio Valuation is pretty self-explanatory, valuing portfolios (attaching a price/value to debt and equity investments). Companies approach D&P and ask for services ranging anywhere from Negative Assurance (“the company’s debt/equity values are not unreasonable”) to an actual Point Estimate that would attach a a numerical value to the assets. Trying to learn the day-to-day terminology is a challenge in itself; however, it is fun once I do get a grasp on the topic that they are discussing.
** Highlight of the week: Arguing with a homeless guy about whether to call my can of Sierra Mist a “pop” or a “soda”… He says to me, “POP? I’ll show you a pop” and precedes to pop his shoulder blade out of place. I think he wanted a dollar, but I wasn’t having it. Makes me miss Columbus’ finest: The Rapping Bum aka Help is on the Way **
Anyways, back to the relevant discussions. One may ask, “Why would an investment company ask for a 3rd party to value their debt and equity? There aren’t any rules that force these companies to have these valuations performed, so what is the point?”
There are a few reason why a company would want D&P’s services:
I know, I’m not working in a zoo and playing with monkeys on a daily basis, nor am I coaching high school football (which would both be awesome). However, I am learning vital information about our financial world and hopefully I will be able to apply these acquired transferable skills to numerous potential career paths.
Next time, more about the projects that I have been working on… Also, stay tuned; my blog titled “People of the Subway“ is coming soon… You’re in for a treat.