INVESTMENT BANKING, Exercises of Business

Download INVESTMENT BANKING and more Exercises Business in PDF only on Docsity! THE OHIO STATE UNIVERSITY FISHER COLLEGE OF BUSINESS INVESTMENT BANKING Fisher College of Business Undergraduate Career Path 2 • Investment banking is the business of raising capital for companies and advising them on financing and merger alternatives. • Investment banks may be categorized as boutique, middle-market, or bulge bracket depending on the size of the firm or the deal size they target. • Examples: • Boutique: Evercore, Moelis, Lazard • Middle-market: William Blair, Houlihan Lokey, KeyBanc • Bulge: Goldman Sachs, JPMorgan, Citi Group Vault Career Guide to Investment Banking What is Investment Banking? 5 • Have a deep understanding of finance and accounting • Are detail-oriented • Possess strong Excel and PowerPoint skills • Maintain the ability to balance multiple projects and priorities at once • Are hard-working and have the capability to work long hours • Exhibit strong communication and client skills Investment Bankers (usually) … 6 Due to the competitive nature of this field, internships / full-time opportunities are limited for undergraduate students. Investment Bank's recruiting processes are very unique and rely heavily on networking beforehand. To get an upper hand, it's beneficial to start to begin to build your own network by reaching out to Ohio State alumni in the field or other personal connections. Networking will give students a better understanding of the industry, responsibilities of an analyst, and a typical work schedule that you can expect. LinkedIn and cold-emailing can serve as good resources and methods for finding relevant professionals to reach out for potential phone calls and meetings. Importance of Networking 7 Internship opportunities in the field of investment banking are very limited. Most firms hire candidates with past internship experience and a record of success in a particular academic field of study or industry. Many banks target Ivy League schools for potential candidates so it's important to have unique experiences that help you stand out. Investment banking summer analysts typically are placed within an industry or product group and work on various projects over the summer including pitches, equity offerings, debt issuances, or live M&A transactions. Sample Internship Opportunities 10 Opening/Industry/Fit: 1. Tell me about yourself. 2. Why did you choose Ohio State? 3. Why did you choose your major? 4. Why do you want to pursue investment banking? 5. Why are you interested in XYZ Bank? Behavioral: 1. Of your past experiences, what will help you as an analyst? 2. Tell me about a time you failed. 3. Tell me about a time you worked on a team that lacked direction. Technical: 1. What are the main financial statements and how are they connected? 2. How does depreciation expense affect all three statements? 3. What are the three main valuation methodologies? 4. Walk me through a discounted cash flow (DCF) model. 5. Pitch me a stock. Sample Interview Questions 11 Fisher College of Business Average Consulting Salaries (2018-2019) Full-time $82,353/year Investment Banking Salaries 12 • Employment of consultants is projected to grow 10% from 2014 to 2024, faster than the average for all occupations. • Demand for investment banking advisory services and commodities trading are likely to create strong employment growth. • See the Occupational Outlook Handbook for additional information: http://www.bls.gov/OCO/ The Job Outlook for Investment Banking