Professional Documents
Culture Documents
10/1/2011
IB Recruiting Timeline
October 18th: Resume due for Parker Resume Book October 19th and 20th: Training the Street Valuation Workshop
Visit banks in their San Francisco, Palo Alto, and Menlo Park offices Visit banks in their NYC offices Study interview questions
Winter Break:
January 2-3:
January 3:
Training the Street Interview Prep Mock Interviews First round interviews begin
January 13th:
IB Resources
Investment Banking Overview
Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions by Joshua Rosenbaum and Joshua Pearl ACT Dropbox
PE Hub Wire
Investment Banking
Banking Functions
M&A
On the mergers and acquisitions (M&A) advising side of corporate finance, bankers assist in negotiating and structuring mergers between companies. If, for example, a company wants to buy another firm, then an investment bank will help finalize the purchase price, structure the deal, and generally ensure a smooth transaction. In the last few years, the M&A market has been white-hot, as companies have large cash balances with which they can complete strategic transactions.
Underwriting
The underwriting function within corporate finance involves the process of raising capital for a company. In the investment banking world, capital can be raised by selling either equity (stocks) or debt (bonds or loans) (as well as some more exotic securities) to investors. Underwriting is unique, in that it involves the investment bank assuming a large amount of risk. Essentially, in the case of a bond offering, you can think of the process of underwriting as an investment bank writing a check to a company, then raising the funds in the markets from investors. This means that the investment bank assumes the risk of the transaction not selling in the market. Think of this as buying pizza for friends and relying on them to pay you back. If youve ever done this, youve underwritten a transaction.
Industry Groups
With industry groups, by contrast, you work within one industry but on many different types of deals equity, debt, M&A, and so on. Examples include: Healthcare Natural Resources (Oil & Gas and Mining) Technology, Media & Telecommunications (TMT) Financial Institutions Group (FIG) Industrials Industry groups focus more on knowledge of the industry, what different companies are doing, and building operating models (3-statement models) for companies.
M&A
Leveraged Finance
Restructuring
Deal can be M&A, debt or equity offering, or other transaction Please send your ACT coaches your deal research the night before your assigned meeting
Why Banking? Background / Personal Walk me through your resume Career switcher questions