9 Examples of Investment Banking Work

                                        

By now you have a grasp of banking traits and a basic understanding of the technical skills needed for the job. Now let’s take it a step further and check out a few finished examples of projects you may get a chance to work on as an investment banking analyst.

The type of work is really dependent on which division your assigned to, size of your bank, and the progression, size, and type of deal your working on. On the other hand, you may get stuck fetching MDs coffee and dry cleaning or playing Brick Breaker (facetime) instead of working on these projects. Nevertheless, here are the 9 examples:

  1. Soliciting deals require binding several pitchbooks, many of which never result in a deal. Take a look at a set of Qatalyst books used to pitch Oracle to acquire Autonomy. Presentation #1 and Presentation #2
  2. Oracle never purchased Autonomy, but SAP did for a deal worth $6B. Okay so pitchbooks are more that just PowerPoint, right? Yes, here’s a taste of Excel models: comparable companies analysis, past precedent analysis, discounted cash flows, and leveraged buyouts.
  3. Research Reports, SEC Filings, Board Presentations are used to compile the information needed for the models and other documents. You will be spending plenty of time looking at numbers, financial and business drivers in these materials.
  4. Looking to solicit potential investors for an IPO? You’ll be working hard to create an offering memorandum.
  5. Hired for advisory work to evaluate a merger, acquisition, buyback, spinoff, or private company? You’ll be assigned to creating a fairness opinion.
  6. As a deal is going through, there is a lot of correspondence that takes place between your bank and the companies. Analysts will often be on the phone for hours taking notes or listening to presentations. Additionally, you’ll be exposed to the legal side of the deal process; and hope the deal works out.
  7. Merger, combo, or accretion/ dilution model will also be something you’ll get a chance to build for an M&A deal.
  8. There will be times that the modeling is not so common. Premiums analysis is one example of a model that won’t come up during an interview, but you may have build on the job.
  9. Finally, there are purchase and sale agreements. This contract is the foundation behind the negotiation and deal process. 

Would you like to see anything added? Leave a comment and I’ll see what I can do.

9 Rules To Live By

Here is a short summary of the rules:

Rule #1: Always have clear lines of ownership. Know exactly what you are supposed to do and ensure others know that exactly

Rule #2: Always have your act together. You can’t know everything, but what you can know try to know it well.

Rule #3: Under promise, over deliver. You will always come out on top.

Rule #4: Never make yourself indispensable. If you do you’ll stay where you are because you are, well, indispensable.

Rule #5: Credibility is king. Period.

Rule #6: Attitude is a little thing that makes a big difference. You can teach anyone anything, you can never teach right attitude.

Rule #7: If you find yourself in a hole the first thing to do is stop digging. Old cowboy saying.

Rule #8: “Skate to where the puck is going, not to where it is (or where it has been).” The Great One, Wayne Gretzky.

Rule #9: At the end of the day always remember that it’s just a job.

In the past, I have posted on this subject from an investment banker’s perspective. The rules above are more universal in nature since the wisdom can be applied to business, work, and life.