On March 18, 2019, Andrew Sandberg came to IUP to talk to Daniel Lawson’s Finance Seminar (FIN422) class and meet with the Student Managed Investment Portfolio.
Sandberg graduated from Indiana University of Pennsylvania in 2005 with a BS in accounting. He then worked at PricewaterhouseCoopers for 10 years. He now works as a vice president at Houlihan Lokey, a leading global investment bank with expertise in mergers
and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting.
During his time at IUP, Sandberg co-founded the Student Managed Investment Portfolio, a hands-on learning experience where students are able to manage over $1 million dollars for the Foundation for IUP. He explained how the club was organized during the
first couple of years and what their investment strategy was. He was pleased to see the changes that have taken place since he has been gone such as new compliance standards, voting/stock pitching requirements, and performance reporting standards.
In Sandberg’s FIN422 presentation he covered the basics on what investment banking is, what responsibilities investment bankers have, and the differences in the types of investment banks. He explained how investment banks “with a balance sheet,” which
are banks that are able to provide loans to companies. His investment bank does not have a balance sheet; therefore, a part of their responsibilities is helping to find lenders for their advisees.
One of the major points Sandberg talked about was a recent deal he had been working on. This client was a tiny company that had developed a patent—however, had yet to produce earnings. They were approached by another company that was willing to purchase
them outright. His responsibility was to create a valuation model to determine a “fair price” for the company. Since this company didn’t have any free cash flows to discount, Sandberg needed to estimate future earnings based on the licensees of the
patent. To do this his team looked at possible production levels, macroeconomic indicators, and other factors that could influence the company’s valuation.
Sandberg showcased one of the models he used to determine the fair price of the company. In the model there were options to set which “case” (best, base, worst) the user wanted to see for each different factor, such as economic conditions, corporate conditions,
etc. These cases would change the growth/discount rates in the model therefore affecting the overall valuation.
Thank you, Andrew Sandberg, for coming back to share your knowledge and experience with our students!
Eberly College of Business and Information Technology