Investment Banking Overview Investment Banking Function o Investment

Investment Banking Overview

Investment Banking - Function o Investment Banking Function within a Investment Bank n o o o 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? o Represent Companies for Sale n n n n 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? o Represent Companies Buying Other Companies n n Value Company (financial models) Conduct Due Diligence Draft terms and determine price offered Negotiate with Seller

What do Investment Bankers Do? o Represent Companies issuing debt or equity (Underwriting) n n Value Company (financial models) Write Prospectus (or other SEC filings) Create Management Presentation Take Company on Roadshow

Associates Role o Essentially Responsible for EVERYTHING n Manage up (MDs, VPs) and down (Analysts) and outward (Clients) n Financial Modeling – Intricate (LBOs, structuring) to mundane (comps) o n Writing/Presentations – Selling memos, management presentations, commitment memos, Roadshows o n Word and Powerpoint Experts Putting Pitches together o n Excel Experts All of the above (and including binding, copying page counting) Research

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

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