investment banking boston university finance club
TRANSCRIPT
Introductions Ricardo
Analyst, Technology M&A at Jefferies Graduated SMG in 2011 with a dual concentration in
Entrepreneurship & Finance Previous Internships
DFJ Esprit Jefferies
Alex Analyst at Bowen Advisors Graduated SMG in 2011 with a dual concentration in
Finance & Marketing Previous Internships
Merrill Lynch Laven Partners
What is investment banking? A financial intermediary between investors and companies
Sports agents represent their clients in all major financial matters Investment bankers represent their clients in all major
financial/strategic matters
Investment Banks Generally have 3 Major Divisions Sales and trading
Broker for institutional clients Proprietary trading
Research Corporate finance & M&A
Corporate Finance IPO Private placement Restructuring
M&A Sellside Buyside
(1) The Economist. http://www.economist.com/node/18654578(2) Financial Times. http://markets.ft.com/investmentBanking/tablesAndTrends.asp
2010 Total Global Banking Revenue
$80
$750
$2,920
IB Retail Other
($USD Billion)
Type of Investment Banks Bulge bracket
Full service, thousands of employees, billions in annual revenue Goldman Sachs, Morgan Stanley, BofA/Merrill Lynch, JP Morgan & Co.,
Credit Suisse, Citigroup, Deutsche Bank, UBS
Full service mid-market Jefferies, CIBC, Cowen, Morgan Keegan, Needham, Raymond James, RBC,
Bulge boutique High end, large deals, M&A only
Evercore, Greenhill, Blackstone, Lazard
Boutique Bowen Advisors, America’s Growth Capital, Capstone, GCA Savvian,
McNamee Lawrence, Pagemill, Mooreland, Revolution Partners (acquired by Morgan Keegan), Updata, many others
Introductions Ricardo
Analyst, Technology M&A at Jefferies Graduated SMG in 2011 with a dual concentration in
Entrepreneurship & Finance Previous Internships
DFJ Esprit Jefferies
Alex Analyst at Bowen Advisors Graduated SMG in 2011 with a dual concentration in
Finance & Marketing Previous Internships
Merrill Lynch Laven Partners
What do Investment Bankers Do?Understand the industry, market sentiment and economy
Determine the most stable cap structure
Consider the best growth alternatives
Pitch the positioning of the business, the timing for the transaction and your bank’s
capabilities
Where does business come from?
Bake-offs
Relationships
Coverage Banker
Idea generation by the bank
The Role of an Analyst
Market Research, Buyer/Seller Profiles, Comparable/Premium
Analyses, Due Diligence / Data Rooms, Drafting
Materials
Finalize Marketing Materials, (CIMs)
Financial Modeling
Management Presentations,
Pitches, Negotiation
Info
rmati
on
Analyst
Associate
Senior Level
Pros and Cons Keeping an appropriate life / work balance is key
www.mergersandinquisitions.com
Cons 80-130 hour weeks
~19 hours a day 7 days a week
Iterative Process “Culture”
Pros Personal growth
Technical Analytical Presentation People skills
Working on Deals Advise Senior Management Compensation Career development
How to get in the field? Networking
Internships VC Hedge Fund PE
Interview Research: Corporate hierarchy, division, past performance, current
news and events Show that you are eager to learn and work hard Mention that you are always on time and are able to meet deadlines
Work on your people skills
Exit Opportunities & Alternatives
Exit Venture Capital Private Equity Hedge Funds Market leading industry firms
Alternatives Asset Management Corporate Development
BU Finance Club
Boston University Advantage Strong general management program
“The Harvard Business School takes an approach to learning that says that all business problems are interconnected”1
Apply for summer internships in finance related jobs now!
Semester abroad internship
LinkedIn cold call
(1) Jeremy Shinewald, Founder & President of mbaMission. http://www.youtube.com/watch?v=9Y6022aNtnQ
Links Mergers and Inquisitions www.mergersandinquisitions.com Investment Banking overview
http://www.youtube.com/watch?v=gRSJG6QB03I Financial Times – League Tables
How is IB affected by the market & economy? ECM Market sentiment
Trends in the market Appetite What sectors are in
Monetary policy
Equity Research
Valuing company Speaking to management, understanding the business
strategy Evaluating situations
Sales and Trading
Advisory Capital structure Growth
Acquisition Organic Divest a business
Understanding the market sentiment and economy Strong market
Higher M&A volume, easier to raise capital Weak market
Lower transaction volume
Departments of a Full-Service Investment Bank
Equity Research Sales and Trading
Investment Banking Manage the relationship with
firms wanting to raise money Equity capital markets
Manage the relationship with investors (public offerings)
Bridge between IB and Equities
Middle & Back Office
Front Office Client