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Tag: Investment Banking Analyst

A Complete Guide to the Investment Banking Analyst

Posted on by Imarticus Learning

A profession as an investment banking analyst is rewarding and occasionally challenging. But with the right skills set and training, hundreds of opportunities are waiting for anyone in high finance. A guide is presented through which everything one will want to know about the job of investment banking analyst has gone, including essential skills, possible career pathways, typical responsibilities, and options for relevant trainings in programs that suit the industry.

What is an Investment Banking Analyst?

He or she works, in this regard, for an investment banking analyst providing significant responsibilities as a team led by senior bankers dealing with financial advisory services relating to advisory services given by them to corporates and governments and other organizations involving mergers and acquisitions or any other capital raising activity. He works usually for an organization in the area of data analysis concerning financial issues, modeling, and presentations on investment proposals. With such experience in economics, finance, and data analysis, one could pick even the most minute attributes and still manage high-stress, high-stakes, demanding assignments.

Key Responsibilities of an Investment Banking Analyst

Analysts in investment banking function several vital duties that are highly technological but also require strategic reflection. The primary responsibilities include:

  • Financial Modeling: In financial modelling, very detailed models of projecting revenues, profits, and outcome evaluations are presented. These models represent the crux of any merger, acquisition, or investment decision.
  • Valuation Analysis: They must understand and apply many valuation techniques, including DCF and comparable company analysis.
  • Market Research: Industry, economic conditions, and competitors are studied to make strategic decisions. 
  • Pitchbook Preparation: Analysts prepare a pitch book if the client wants to meet with them. The book will contain data and insights summarising an investment idea.
  • Data analysis and presentation: Analysts would use data analyses to support their recommendations in presentations to bankers and clients.

Critical skills an Investment Banking Analyst should have to succeed

Some knowledge is needed to acquire the necessary core skills to be successful in their career as an Investment Banking Analyst. Most relevant acquired core skills include the following:

  • Financial Analysis: Investors require the ability to read financial statements and metrics. Therefore, a Financial Analysis course will help extend an investor’s understanding of financial metrics and analysis.
  • Excel Modelling: As such, Excel modelling and its advanced functions are the most broadly used tools in investment banking.
  • Valuation Techniques: Before making any decision, one should know the exact value worth of a company using any of the valuation techniques, either DCF or relative valuation.
  • Attention to detail: Any small mistake has a significant impact; hence, accuracy, along with an eye for small things, is required.
  • Communication Skills: One is likely to write or present reports to clients, so evident and practical communication skills are needed to ensure success in an investment banking analyst jobs.

Career Path of an Investment Banking Analyst

A career in investment banking analysis enters typically through the entry-level analysis positions, from which most analysts enter finance or economics graduate school; they can then move further into associates, vice presidents, directors, and to the final managing director posts as they gain experience over time, each position involving interaction with more clients and providing more strategic responsibilities and leadership responsibilities.

A Financial Analysis Course, such as the Postgraduate Financial Analysis Program with Imarticus Learning, would be fitting towards your career startup and higher postings.

Investment Banking Analyst Salary: What to Expect

One of the appealing aspects of Investment Banking Analyst jobs is the compensation. In India, the starting Investment Banking Analyst salary could look to be between INR 6 lakhs to INR 12 lakhs a year. Salary potential goes significantly up as an analyst matures in experience and has increasing responsibility, making the higher levels of the ranks–senior analyst or associate positions–well into six figures annually in lakhs.

There are many hours and much pressure when one is involved in investment banking. Nevertheless, generalized financial rewards and an expansive scope for growth and career advancement often appeal to the most ambitious finance professionals.

How to Become an Investment Banking Analyst

Though entry through a degree in finance, economics, or related streams is the norm, on-field skills in financial analysis, valuation, and modelling also count equally. It would be great if such training courses like the Financial Analysis course encompassed the whole gamut of a curriculum to train people who aim to emerge from this competition.

Postgraduate Financial Analysis Program by Imarticus Learning

The Imarticus Learning Postgraduate Financial Analysis Program incorporates over 200+ hours of study that enables learners to build their skill set relative to investment banking. The course is designed for three years of finance graduates only, focusing on skills that can lead to Investment Banking Analyst jobs.

Program Highlights

  • Full Curriculum: the analyst needs to have a part in financial statement analysis, valuation techniques, and equity research.
  • Industry-Leading Faculty: Learn from industry leaders and experts.
  • Practical Learning: Concepts to be taught using simulations, case studies, and exercises in financial modelling.
  • Career Support: 100% job assistance with seven pre-placed interviews with top firms in finance.

Curriculum for Investment Banking Analysts

The curriculum, as offered by investment banking analysts, usually provides topics relevant to mastering role-related duties. Among such modules, the Postgraduate Financial Analysis Program covers the critical areas of Excel and Accounting Essentials, corporate finance, financial modelling, valuation, and business forecasting. Visualization and Data Management: Presented data in the best fashion to argue for an investment

Importance of Career Support and Job Assistance

Of course, breaking into this fiercely competitive world of investment banking would be challenging. Moreover, the post-graduate financial analysis course offers learners a career transition, a chance to build a resume and an improved LinkedIn profile, and interview preparation. Through the seven guaranteed interviews in some top finance firms, the program has a solid competitive edge in successfully accessing Investment Banking Analyst jobs.

What are the benefits of completing the Financial Analysis Course?

Enrolling in a Financial Analysis course, for instance, this one with Imarticus Learning, has some pros associated with it, such as:

  • Industry-relevant skills will be learnt, starting with financial modelling and other vital skills to be deployed on the job.
  • Exposures and networking that open avenues to industry-level personalities and professionals in investments at banks.
  • Job opportunities increase because this program provides 100% job support and guaranteed interviews. Now, get ready to start this bright career as an analyst in the investment banking sector.
  • The program is available weekdays and weekends for working professionals.

Conclusion:

A position in investment banking as an analyst offers tremendous scope for growth and incentives to anyone enthusiastic about finance with good analysis skills. Students can hone such skills through a focused course on financial analysis, like Imarticus Learning, and become successful analysts with better knowledge, experience, and support for this challenging field. Appropriate training can make Investment Banking Analysts a suitable base for adequate and impactful careers in finance.

Investment Banking Analyst Career’s FAQ’s

What are the requirements for becoming an investment banking analyst?

A finance or Economics major is preferred, as is hands-on training in financial modelling and valuation. A course holder in Financial Analysis will give an added competitive edge.

What are the most essential skills for an Investment Banking Analyst?

Financial analysis, valuation, and a significant hold on Excel, and good communication abilities

How much do Investment Banking Analysts make?

In India, the starting Investment Banking Analyst salary ranges from 6 LPA to 12 LPA. The average Investment Banking Analyst salary in India is around 14.8 LPA. Still, most analysts make between INR 13 lakhs and INR 30 lakhs, depending on the firm and individual’s performance. Bonus payments were also distributed to the analysts, which can go as high as 30% of the base and really increase their overall paycheck.

How will the Postgraduate Financial Analysis Program benefit me?

It prepares one for Investment banking with a 100% job guarantee and seven interview guarantees, greatly enhancing the prospects of furthering one’s career.

Is it mandatory for me to have an experience in financial analysis?

No, you join this program fresh off the graduate track; however, you might have 0-3 years of experience in finance and thus will be a part of this class of candidates.

Investment Banking- Understanding the Deal: The Pitch Process (II)

Posted on by Imarticus Learning

In our last post we looked at why companies use investment bankers to sell or buy assets. In this post we try and understand what happens once a company decides to use an Investment Banker. What happens next?
Well they first need to look for a banker. So let’s go back to our earlier example taking the government’s stake sale in its Stuuti companies. Before they decided to shortlist Citibank, ICICI and HDFC, they hold a beauty parade where every banker worth their salt ‘parades’ their wares and offerings during a ‘pitch.’
Quite often you’ll find Investment Banking analyst friends working late on Saturday evening. When you ask them why, it’s quite likely they’ll utter the dreaded words, ‘pitch document’. The Pitch Document is the bread of Investment Banking, it’s the pizza base of that great Margerita. Without a great pitch document, all you are left with are handful of deals you managed to wing through your bosses contacts and even then you’re going to have to pitch for the deal. So what is a pitch document? It is a meeting backed up by a document where a banker convinces you, the client, why they are the best team to sell your asset. How do they do it?
The easiest way to explain this is to liken it to selling a pencil. If I have to sell you a pencil, what would I say? I need to tell you why this pencil is better than all the other pencils out there. I also need to tell you why this pencil costs as much as it does. For that I need to know what goes inside the pencil, how much those cost etc. If I need to sell the pencil on your behalf because you are my ‘client’ I need to know everything YOU know about the pencil. The price I sell the pencil at is the ‘value’ of the pencil. I have to explain to you what that value is and how I arrived at that value. I need to convince you I know everything there is to know about pencils, pencil making, the pencil industry, competing pencils so I can sell this pencil better than anyone else out there. So a usual Pitch Document consists of five elements.
1. Establishing my credentials – how many pencils have I sold before and to whom. Whose pencils have I sold and my expertise in selling these pencils. Perhaps I have someone who used to work in pencil manufacturing, Steadler maybe or Apsara, and knows the nuances of pencil making, has the inside track if you will.
2. Company Overview– I tell you a little bit about your company to show you that I know about your pencils. It’s a little counterintuitive I know but it shows I’ve done my homework and know what makes your pencils tick. I might also use this opportunity to tell you any risks I foresee with selling this pencil. Perhaps the pencil has an eraser that’s of an older technology or uses too much wood etc
3. Industry Overview– Here I showcase how much I know about pencils in general, trends in pencil making, what drives pencils usage, opportunities and risks in pencils which will help me forecast the market for pencils and therefore my clients potential market which will flow down to profitability and cashflows
4. Valuation– Once I have cashflows and industry numbers I put together the pencil’s valuation using both cashflows (DCF) as well as the value multiples of other pencils (Comparable PE and EV/EBITDA, EV/Sales multiples )in the market along with the value of what other pencils have been sold at in the past (Transaction multiples)
5. Potential Buyers of your pencil. Using my considerable industry knowledge I tell you who would be most interested in buying your pencil.
All this and more is taught in our FMVC as well as our Diploma in Corporate Finance, both of which are Mumbai’s best courses in Financial Modeling and Corporate Finance and Investment Banking.

 

What does an Investment Banking Analyst do?

Posted on by Imarticus Learning

Investment Banking Analyst Work

  • Preparing reports affecting decision making.
  • Financial and data modelling.
  • Conduct analysis and research of financials.
  • Dealing with client debt-portfolios and issuances.
  • Sales and promotions of financial instruments.
  • Creating market and data reports.
  • Presenting and justifying emerging trends and case studies.

Investment Banking offers many job and career titles and routes. The main areas are in

  • Boutique or bulk-investment banks
  • The real-estate segment
  • Firms on the Sell or buy side.
  • Insurance and Fintech sectors.
  • Companies involving investment decisions that are data-driven.
  • Brokers and their firms.
  • Company acquisitions, sale or mergers.
  • Raising capital and fund-sourcing.
  • Stock markets and players of private equity.

The Investment Banking Job Role

The role of an investment banking analyst would typically involve pattern finding, providing insights, reports and research into trends, errors etc in databases which can successfully be used to base decisions on, detect errors, forecast, make data-justified predictions and such tasks helpful to investments of clients both external and internal.

The analyst is all important in the making of management and operational decisions based on financial and investment data. Though investment-related the analyst’s decisions have far-reaching consequences in managing workflow and processes, inter-department connections, business models, and technical infrastructure involved. They are responsible to spot and present trends that affect employee productivity, overall efficiency, management decisions and operational workflow.

Across the board of enterprises, companies, banks, and other industrial verticals the role of an analyst is fast becoming a good career decision. And in investment banking, the lucre and prestige associated is a big draw.

Education Required:
Though there are no educational criteria fixed for the analyst’s role, graduation with subjects like statistics, business management, economics, mathematics, computer science and finance, do go a long way in being efficient in this job role. Since data means control of literally every decision today, the analyst also needs to be adept at using data skills for using the latest technology to enable decisions and impact efficiency, productivity and further growth.

Doing a professional course in financial data analysis from a reputed institute like Imarticus adds great value. Such investment banking analyst training also leads to certification and helps you enhance your resume while furthering your prospects and career growth.

Why Investment Banking Analyst Certification Is Important?

Yes, many analysts need certifications which may be a pre-condition especially in the banking sector as a true measure of your skills and being job ready. Doing such a course allows the investment banking business analyst with training that focuses on hands-on live projects and practical skills.

The obvious advantage of skills enabled through a global practical-oriented curriculum, sufficient industry-relevant applications and projects, workshops, quizzes and assignments and help in the certification exams makes such courses a logical must-do.

Gaining Technical Skills:
Most analysts pursue investment banking analyst courses at Imarticus to hone their data-analytics skills with the latest technologies, advanced techniques, industry-accepted norms, tricks and best-practices. Certifications in investment banking and financial analysis are relatively new and insist on the acquisition of practical skills to apply theoretical knowledge imbibed in the courses.

Classes can be generally be availed in the classroom, self-paced learning and online virtual classroom modes. This also provides working professionals with the opportunity to change career tracks and adopt newer skills to their portfolio.

Job Scope and payouts:
According to Payscale, the analyst roles can fetch lucrative payouts which start with 67,000$ pa. Incentives and bonuses depend on the performance and can match the salary. The demand for trained and certified professionals is very high as these fields and the technology involved is constantly being upgraded.

Here is a brief explanation of the investment banking analyst terminology involved.

  • Debt Markets:
    Debt investment banking markets involve a blend of trading and sales. If a debt is raised then the company pays interest to the holders for borrowed funds and does not involve ownership decreases as in Equity funds.
    There are three forms of funding involved in the debt financial markets
  • The mutual funds:
    The definition is a sum of money collected from investors with the intention of making sizeable profits. Just as when you deposit money into the bank to earn interest, the money collected is invested in other assets like debt funds and other money markets for a small fee. The profits or losses are calculated on NAV of the fund money after deducting expenses. It is a partnership effort where both losses and gains are shared based on one’s share in the fund.
  • Debt Funds:
    Those funds invested in company debentures, government bonds, and other fixed assets are considered low risk as they provide a fixed percentage of income on maturity and when traded in. The term debt means the fund loans the money to the company invested in for a fixed return.
  • Equity Funds:
    Those funds invested in company shares or in buying stocks and equities in promising companies carry a high degree of risk and provide higher returns when traded in or sold. The term equity means the fund is used for buying a share in the company invested in.
  • Equity Markets:
    The Equity Market has three categories:
    Equity Funds: This mainly deals with IPOs, raising capital, financing deals, etc.
    Syndicated: This interbank transaction involves multiple-bank equity deals.
    Convertible Bonds: Debts that convert into a share in equity help raise company capital through the issuance of such convertible bonds.Both the debt and equity financial markets offer immense opportunities for financial and data analysts. Debt Capital Markets that are debt-based involve lesser amounts of financial modeling when compared to Equity Markets being higher in volumes since global credit outstrips global equity in the markets. The environment in debt markets is fast and deals culminate rapidly. This is also a lesser risk market.

Remember that an investment banking analyst deals with management and operational aspects of financial investments. Expect a lot of hard work and long hours to be a part of the job. Its handsome payouts mean your career decision should be based on your inherent interests for numbers and management practices.

In conclusion, of the many courses available for certification especially in the banking domain, Imarticus courses score high. By doing the course and certification with Imarticus Learning you can carve a career for yourself as a Business Analyst in the banking domain.