Investment Banking Overview

Investment Banking - Function

Investment Banking Function within a Investment Bank
also called Corporate Finance

Includes Advisory Services on M&A, Foreign Exchange, Valuation, Financial Strategy, Issuing Debt and Equity, etc Client-driven industry Separated from rest of bank by Chinese Wall

What do Investment Bankers Do?

Represent Companies for Sale
Value Company (Financial Models) Write Selling Memo Conduct Due Diligence Identify and Contact Buyers Create Management Presentation Negotiate with Buyers Close Transaction

What do Investment Bankers Do?

Represent Companies Buying Other Companies
Value Company (financial models) Conduct Due Diligence Draft terms and determine price offered Negotiate with Seller

What do Investment Bankers Do?

Represent Companies issuing debt or equity (Underwriting)
Value Company (financial models) Write Prospectus (or other SEC filings) Create Management Presentation Take Company on Roadshow

Associates Role
Essentially Responsible for EVERYTHING Manage up (MDs, VPs) and down (Analysts) and outward (Clients) Financial Modeling Intricate (LBOs, structuring) to mundane (comps)
Excel Experts

Writing/Presentations Selling memos, management presentations, commitment memos, Roadshows

Word and Powerpoint Experts

Putting Pitches together

All of the above (and including binding, copying page counting)

Research

Associates Role
Key Skill Area Requirements
People skills: Sales skills: Communication skills: Analytical skills: Ability to synthesize: Creative ability: Initiative: Work hours: High Medium High High High High/Low High/Medium 80-120/week

Pros and Cons

Pros
Doing Deals Fast paced/Intellectually Driven Environment Meeting CEOs and CFOs $$$ Skills Hours, Hours, Hours Work can be monotonous Job security/Economic Environment Strong Personalities

Cons