Careers in Investment Banking

Investment Banking Technical Skills Required:

I-banking work requires a lot of financial modeling and valuation.  Whether for underwriting or M&A activities, Analysts and Associates at banks spend a lot of time in Excel, building financial models and using various valuation methods to advise their clients and complete deals. Investment banking requires the following skills:

•          Financial modeling – Performing a wide range of financial modeling activities such as building 3-statement models, discounted cash flow (DCF) models, LBO models, and other types of financial models.

•          Business valuation – Using a wide range of valuation methods such as comparable company analysis, precedent transactions, and DCF analysis.

•          Pitchbooks and presentations – Building pitchbooks and PPT presentations from scratch to pitch ideas to prospective clients and win new business.

•          Transaction documents – Preparing documents such as a confidential information memorandum (CIM), investment teaser, term sheet, confidentiality agreement, building a data room, and much more.

•          Relationship management – Working with existing clients to successfully close a deal and make sure clients are happy with the service being provided.

•          Sales and business development – Constantly meeting with prospective clients to pitch them ideas, offer them support in their work, and provide value-added advice that will ultimately win new business.

•          Negotiation – Being a major factor in the negotiation tactics between buyers and sellers in a transaction and helping clients maximize value creation.

How to Become an Investment Banker?

Making a career in Investment Banking is a multi-step procedure that will need education, ambition, networks, hard work, and sometimes smart work. So if you are motivated enough for making a career in Investment Banking then keep on reading the following discussed points:

•          Job Roles: Investment Banking positions (increasing order of seniority) are; Analyst, Associate, VP, Director, Managing Director

•          Eligibility: Investment bankers can hail from various backgrounds but being a crackerjack at mathematics is significant. It would be best if candidates had a bachelor’s degree in finance, accounting, economics, or mathematics. But aspirants from other fields like computer science, liberal arts, or physics can also tread on this path. Entry-level positions like analysts require only a bachelor’s degree, but MBAs and CFAs are most common for higher levels.

•                Courses: MBA in Finance or Investment Banking and CFA are most preferred courses for higher positions. But a Graduate student with average academics can also make a career in Investment Banking by doing good Industry Oriented Certification Courses. Any student should choose only those certificaytions whoich are taught by Industry Professionals & offer Escellent Placement Assistance.

•          Internship: An excellent way to get the gist of making a career in Investment Banking and create a professional network is to do an internship. It can help candidates to be well-versed with the details of investment banking. Connections are of enormous relevance while thinking of Investment Banking as a career choice.

•          Top Employers: After getting the education part right, aspirants need to concentrate mainly on networking while still in school to land a job as a banker. Central investment banks recruit analysts and associates from top business schools and interns who have worked with them. So, if you are not an alumnus of a prestigious B-school or could not get the right internship, then connections are the only thing you can rely on.

Personal Skills Required

Mathematical Skills: For making a career in Investment Banking, mathematics is one of the key skills for sustaining in the Investment Banking Industry. If you have no basic knowledge of calculations and solving problems then Investment Banking is not the right place for you.

Analytical Skills: It is also an integral skill an aspirant must possess. Working on research and financial models requires a great analytical mind to learn and adapt to those quickly.

Basic Knowledge of Finance: Entering into the finance world would definitely ask you to be aware of basic knowledge of Finance. No finance recruiter would be keen on hiring candidates if they are lacking in basic financial knowledge. It includes knowledge of three basic statements such as Profit & Loss Account, Balance Sheet, and Cash Flow Statement.

Basic & Advanced Ideas of PowerPoint and Excel: Aspirants are required to know the basic and advanced ideas of both the tools because 80% of the work of Investment Banking consists of working on Excel and PowerPoint presentations.

Financial Modeling is a Plus: For making a career in Investment Banking, it would be best to have a sound knowledge of Financial Modeling. Investment Bankers work day and night on models, they are always in search of aspirants who can build models from scratch.