What does an Investment Banking Analyst do?August 2, 2016
So you’ve seen Wall Street, you’ve read Liar’s poker and you’re all set to do your Diploma in Corporate Finance from Imarticus Learning, one of the best courses to help you become an Investment Banker, but do you know what an Investment Banking analyst actually does?
The Investment Banking Analyst is usually a fresh graduate from a well-known college. More often than not, they have little or no knowledge of finance and have gotten through on the back of their academic performance so far as well as their ability to showcase their analytical and quantitative skills, usually examined via aptitude tests. These days however, many of them take short training courses in Investment Banking from Imarticus Learning to gain an edge in the extremely competitive Interview rounds.
An Investment Banking Analyst’s role comprises the following activities :
Pitch Books –
Creating pitch books is what the analyst does day in and day out. A pitch book is a marking document used when an Investment Bank pitches a client to mandate the bank to either buy or sell their asset on their behalf. It usually showcases the firm’s track record as well as provides detailed analysis on why the investment bank will be the best advisor for the job. This will include brief industry and company analysis to showcase their skills as well as a section on valuation to communicate how much they can sell or buy the asset for. Analysts often work on many books at a time for various teams. Pitch books require research and analytical skills as well as presentation and story boarding skills. It’s no surprise that by the time Analysts become Associates, story boarding and content design become a significant value add.
Financial Models –
Creating Financial Models is another key part of an analyst’s job and usually accompany an Information Memorandum prepared by them for a deal. Financial models are multi sheet financial statements with detailed assumption sheets, which model multiple variables. They require a strong understanding of Financial Analysis, business models and revenue and cost drivers as well as the ability to forecast both Industry and company metrics
Research and Analysis –
The Analyst is expected to read and research intensively to undertake both company and industry analysis. This means keeping abreast of news and trends rather than just focusing on secondary information.
All of the above require a keen understanding of Corporate Finance, Valuation, Accounting, Economics as well as proficiency in Excel and PowerPoint. This is one of the reasons training courses in Investment Banking like Financial Modelling Valuation Courses and Diploma in Corporate Finance ensure students put the best foot forward while preparing for their careers in Investment Banking.