IB Breakout Agenda Career Search Process


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IB Breakout Agenda Career Search Process

  1. 1. IB Breakout Agenda <ul><li>Career Search Process </li></ul><ul><li>Asking Effective Questions </li></ul><ul><li>IB Organization Design and Terminology </li></ul><ul><ul><li>Coverage Group vs. Product Group </li></ul></ul><ul><ul><li>Roles and relationships </li></ul></ul><ul><li>Resources </li></ul><ul><li>Open Q&A </li></ul>
  2. 2. Career Search Process Update <ul><li>Recent feedback suggest many 1 st years are intimidated being a “career switcher” and by the Investment Banking recruiting gauntlet </li></ul><ul><li>Facts: </li></ul><ul><ul><li>Out of MBA2s who interned at Investment Banks: </li></ul></ul><ul><ul><ul><li>Only 5/30 (16.7%) had undergraduate degree in Finance and/or accounting </li></ul></ul></ul><ul><ul><ul><li>Only 5/30 (16.7%) worked in Investment Banking prior to school </li></ul></ul></ul><ul><ul><ul><li>Only 1/30 (3.3%) had Finance/Accounting degree and worked in Investment Banking </li></ul></ul></ul><ul><ul><li>Recruiters come to Michigan expecting career switchers and are all prepared to give multiple offers </li></ul></ul>
  3. 3. Career Search Process Update <ul><li>Facts (cont): </li></ul><ul><ul><li>Despite lack of Finance reputation, Banks love Michigan and quality of candidates </li></ul></ul><ul><ul><li>The industry has never been hotter and desperately needs Analysts and Associates </li></ul></ul><ul><ul><ul><li>University of Michigan has more banks recruiting this year than ever!! </li></ul></ul></ul><ul><ul><li>There has never been a better time to break into this industry than right now. . . </li></ul></ul><ul><ul><li>You have a higher % chance landing a Wall Street job from Michigan than any other school – period </li></ul></ul>
  4. 4. Career Search Process Update <ul><li>Facts (cont): </li></ul><ul><ul><li>You can all do this job and succeed in this process! </li></ul></ul><ul><ul><ul><li>Christine Lawrie – Biochemist </li></ul></ul></ul><ul><ul><ul><li>Marshall Lai – Engineer </li></ul></ul></ul><ul><ul><ul><li>Sunoor Kaul – Operations, International Student </li></ul></ul></ul><ul><ul><ul><li>Johnny Karkouros – Military, International Student </li></ul></ul></ul><ul><ul><ul><li>Vishaal Rana - Consultant </li></ul></ul></ul><ul><ul><ul><li>Jeremy Anton – Operations </li></ul></ul></ul><ul><ul><ul><li>Loren Black - Evening MBA </li></ul></ul></ul><ul><ul><ul><li>Karan Kalahasti – Evening MBA/Engineer, International Student </li></ul></ul></ul><ul><ul><ul><li>Harsh Singh – Consultant </li></ul></ul></ul><ul><ul><ul><li>Paul Mann – Operations </li></ul></ul></ul><ul><ul><li>If you came back to school to do Investment Banking or have an interest in Financial Services, you owe it to yourself to attend the Wall Street Forum. . . </li></ul></ul>
  5. 5. Asking Effective Questions <ul><ul><li>Good Questions </li></ul></ul><ul><ul><li>Bad Questions </li></ul></ul><ul><li>Are appropriate for audience (MD, VP, or associate) </li></ul><ul><li>Are delivered confidently and succinctly </li></ul><ul><li>Build off presented material </li></ul><ul><li>Suggest a knowledge of the industry and firm </li></ul><ul><li>Are not repetitive or argumentative </li></ul><ul><li>Are detailed or personalized </li></ul><ul><li>Are delivered meekly, poorly or in long-winded manner </li></ul><ul><li>Are not appropriate for a group setting </li></ul><ul><li>Reflect ignorance of industry or firm </li></ul><ul><li>Should have been asked at Finance Club meetings!! </li></ul>You should actively build a list of questions in your daily research
  6. 6. Examples- Good Questions <ul><li>In what areas is your firm experiencing significant growth or opportunity? </li></ul><ul><li>IPO market seems quite strong. Do you expect this to continue? </li></ul><ul><li>What are your expectations for M&A activity in the near term? </li></ul><ul><li>How does your bank balance competing and partnering with private equity shops? </li></ul><ul><li>What has been the impact of post-Enron and Spitzer on your bank? </li></ul><ul><li>How do you derive value from equity research? </li></ul><ul><li>What do you think is unique about your firm versus competitors? </li></ul><ul><li>“ Pure” investment bank vs “universal” bank </li></ul><ul><li>Talk me through your career and progression at the bank </li></ul><ul><li>Why do you enjoy banking? </li></ul><ul><li>Industry vs product group decision making. </li></ul><ul><li>Have you been able to develop informal mentors easily? </li></ul><ul><li>What do you think makes a strong associate? </li></ul><ul><li>Do you have any advice for me as I move through the recruiting process? </li></ul><ul><li>Firm specific: Lehman- lots of mo’, emp ownership; JP- J.Dimon, etc. </li></ul>Critical to tailor your questions to bank, audience and setting
  7. 7. Examples- Bad Questions <ul><li>Have you been able to maintain work-life balance? </li></ul><ul><li>Are bonuses up this year? What is typical comp range? </li></ul><ul><li>How are the hours? How many vacation weeks do you get? </li></ul><ul><li>Does the analyst carry much of the quantitative load? </li></ul><ul><li>What are the opportunities after banking? </li></ul><ul><li>What are turnover rates for your associates? </li></ul><ul><li>“ I used to work in xxx, and did yyy, what do you think about my prospects” </li></ul><ul><li>Read about the numerous legal suits that your bank just settled- how do you avoid that in the future? </li></ul><ul><li>What is leveraged finance? What is equity capital markets? </li></ul><ul><li>How is the culture of your bank? (if asked in this manner) </li></ul>
  8. 8. Social Etiquette <ul><ul><li>Give recruiters and fellow students space </li></ul></ul><ul><ul><li>Listen to the recruiters and do not interrupt them </li></ul></ul><ul><ul><li>Listen to other students questions and build off them </li></ul></ul><ul><ul><li>Be confident, but deferential </li></ul></ul><ul><ul><li>Look the part- dressy business casual </li></ul></ul><ul><ul><li>Do not dominate the conversation </li></ul></ul><ul><ul><li>Never hand out business cards (unless directly asked) </li></ul></ul><ul><ul><li>Thank the recruiter, shake their hand and move on </li></ul></ul><ul><ul><li>Utilize fellow students to peer critique </li></ul></ul>
  9. 9. IB Organization Design and Terminology Investment Banking Industry Coverage Group Product Group <ul><li>Financial Services </li></ul><ul><li>Industrials </li></ul><ul><li>Technology </li></ul><ul><li>Telecommunications </li></ul><ul><li>Energy </li></ul><ul><li>Power </li></ul><ul><li>Financial Sponsors </li></ul><ul><li>Health Care </li></ul><ul><li>Mergers and Acquisitions </li></ul><ul><ul><li>Buy side vs. sell side </li></ul></ul><ul><li>Leveraged Finance </li></ul><ul><ul><li>LBOs </li></ul></ul><ul><li>Equity Capital Markets </li></ul><ul><ul><li>IPO/Follow-on </li></ul></ul><ul><li>Debt Capital Markets </li></ul><ul><ul><li>Staple Financing </li></ul></ul>
  10. 10. IB Organization Design and Terminology Case Study: Sell-side M&A for Private Health Care Company Case Study: Follow-on equity offering of perfume retailer Health Care Team M&A Team <ul><li>Industry Analysis </li></ul><ul><li>Offering Memorandum </li></ul><ul><li>Valuation </li></ul><ul><li>Purchase Agreement </li></ul><ul><li>Financial Projections </li></ul><ul><li>Contact potential buyers </li></ul><ul><li>Process Management </li></ul>Consumer Team Equity Markets <ul><li>Industry/Market Analysis </li></ul><ul><li>Valuation </li></ul><ul><li>Preparation of S-3 </li></ul><ul><li>Internal Memos </li></ul><ul><li>Equity Valuation/Pricing </li></ul><ul><li>Syndication </li></ul><ul><li>Selling </li></ul>
  11. 11. Other Resources <ul><li>Form study groups to aid preparation- the BEST resource </li></ul><ul><li>Talk to second years and utilize other campus groups (i.e. MBW, ISBA, etc.) </li></ul><ul><li>Career websites of firms- know them cold </li></ul><ul><li>Utilize Finance Club Coursepack </li></ul><ul><ul><li>Should have read and be comfortable with sections 1 & 2 </li></ul></ul><ul><ul><li>Focus on sections 3 & 4 for the upcoming week </li></ul></ul><ul><ul><li>Flip through and become familiar with content </li></ul></ul><ul><li>Read WetFeet and Vault guides to better understand industry, terminology and banks </li></ul><ul><li>Schedule OCD appointments early and often </li></ul>
  12. 12. Open Q&A