A Review on investment banking. Investment Banks help companies and governments issue securities, help investors purchase securities, manage financial assets, trade securities and provide financial advice.
1. Steven George Conville - Investment Banker
contact@stevenconville.com
A GENERAL IDEA ON INVESTMENT
BANKING
A Review on investment banking. Investment Banks help companies and
governments issue securities, help investors purchase securities, manage
financial assets, trade securities and provide financial advice.
2. 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”
3. 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
4. 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
5. 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
6. ASSOCIATES ROLE
Essentially Responsible for EVERYTHING
Manage up (MDs, VPs) and down (Analysts) and
outward (Clients)
Financial Modeling – Intricate (LBOs, structuring) to
mundane (comps)
Writing/Presentations – Selling memos, management
presentations, commitment memos, Roadshows
Word and Powerpoint Experts
Putting Pitches together
Excel Experts
All of the above (and including binding, copying page
counting)
Research
7. ASSOCIATES ROLE
Key Skill Area Requirements
skills:
High
Sales skills:
Medium
Communication skills:
High
Analytical skills:
High
Ability to synthesize:
High
Creative ability:
High/Low
Initiative:
High/Medium
Work hours:
80-120/week
People
8. PROS AND CONS
Pros
“Doing
Deals”
Fast paced/Intellectually Driven Environment
Meeting CEOs and CFOs
$$$
Skills
Cons
Hours,
Hours, Hours
Work can be monotonous
Job security/Economic Environment
Strong Personalities