Finance Careers - Investment Banking Analyst

for finance and business majors, one of the most offers to the degree the analyst position in investment banks. Business students are attracted by pay, prestige and fast-paced lifestyle that these twenty-something analysts live. However, before collecting the (quite large) signing bonus, as analysts should make sure they understand what they are getting into

Although many will seek investment banking career, few will succeed. There are only so many IPOs, mergers and buyouts that took place every year, so the industry can only support so many jobs. Furthermore, there are many peaks and troughs in this market, even if you have a job a year, you may not have it to the next.

Despite the high level of competition and job insecurity, the framework continue to decline for the analyst position is always full at the business school career office. So what type of people these companies are looking for?

getting in the door

Yes, corporate finance, seeks bright minds that can clearly articulate the business insights. But investment banks are also looking for students who are driven and disciplined. Athletes often have an ideal personality type for investment banking. They work with the team and practice every day to win. This is the kind of mentality to succeed in the corporate world of finance.

In terms of education and experience, most bankers are looking for candidates with business and finance backgrounds. Good large as finance, accounting, business administration and economics, but even mathematics and engineering majors can make their way in an interview if they can prove that the world and understand the industry that they themselves are getting into

and the practice of work experience related to finance are also very important. If the candidate can prove that they are satisfied with the financial modeling and analysis, they are likely to get an interview. But the interview is a process where the fun begins.

Once selected for an interview, it's time for analyst candidates to start sweating. These conversations are often the hardest in the business world, and potential candidates should think twice before entering into an interview without a few hours of practice interviews, and interviews the study of books under their belt.

In these talks, bankers are looking to confirm that the ability to perceive the resume is actually there. They can do a puzzle questions, rigorous financial analysis exercise or weird questions that are meant to throw the candidates off and check how they react to pressure.

Interviews may involve several rounds - on campus, off-site at the hotel or in the tvrtki.Intervju process usually culminates in a "Super Saturday" cycle in which the top candidates comply with all the bankers at the firm and socializing -. Maybe getting in the sporting event

Super Saturday helps the company make a final decision on the candidates that have the best cultural fit. Offers are extended, signing bonuses are accepted, and recently minted analysts to enter the crazy world of investment banking.

What do analysts do?

So why someone who is fresh out of college to get paid a large salary? In short, analysts have been steadily working his rear off. May they begin their day at 8:00 and not finish it until 1 or 2:00 - and sometimes do not go home at all. They usually plan to come in on weekends to stay on top of projects. When all is said and done, analysts regularly put in 80 to 100 hours a week in New York City companies, and perhaps 60 to 80 hours in the Wall Street firms.

To understand what it is that analysts do not, it is important to understand the business cycle of corporate finance departments. Investment bankers - vice presidents and directors - or they will join or be approached by companies with ideas for potential transactions. These deals may include IPOs, follow-on offerings, private placements, mergers and acquisitions.

bankers will set a meeting with a company called the field, where the parcel service company in the business and present their analysis of the feasibility of potential transactions. On the ground, the bankers will present potential customers with a plot of the book - usually a hard-copy PowerPoint presentation that describes the credentials of the bank with a detailed analysis of the market where the company operates, and often the evaluation of the enterprise itself.

If the company is impressed with the company and interested in pursuing a job, then you will deal with the company for a transaction. Depending on the type of transaction and the market conditions, the transaction may last from several months to several years to complete. At any point in time, the bankers may be working on several grounds, and deal with all at once.

investment banking analysts rarely work on something more than a lot of books for the bankers. Depending on the company or the level of confidence that senior bankers in the analyst, they can get to accompany senior bankers in the field and can also help in some of the job execution.

As simple as it sounds, though, the stage is not an easy book zadatak.Kruh and butter analyst position is comparable company analysis -. "Comps" or comps the evaluation methodology in which public companies that are similar to the company in question is used to create twins of whom value the company can draw.

comps are a great way to learn the intricate details of the financial statements and develop a fundamental understanding of how value is created in a particular industry or market niche. But after several months on a comp for the second analysis, they are very tedious.

In addition, comps, analysts could be invited to prepare a cash flow analysis (DCF) for pitch knjigu.DCF model is slightly more involved and requires putting together financial projections for the company, calculate the weighted average cost of capital (WACC ) and use it to discount cash flows to determine its value.

Other forms of analysis by investment banking analysts may be called upon to prepare the model to include leverage buyout (LBOs) and precedent transaction analysis (comps, etc.). Analysts are also under great pressure from the triple check your work to ensure that no errors in the outfield by the book - otherwise, they are likely to get earful from confused senior bankers failed to return from the field

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Many companies offer an excellent training program and developed several models of templates that will help analysts are very steep learning curve, and the advent of high razini.Tlak, however, can still be quite daunting, and many of the analysts all nighters occur during the first few months as to spend more time trying to learn his trade.

What are the perks?

So, with all the pressures and long hours, there's got to be some incentives for analysts to stick around, right? Sure. Depending on the company, starting salaries for analysts can be in the range of $ 60k to $ 90k, but when you add in the bonuses which are often north of 50% of the total fee can range from $ 100K to $ 140k.

But wait, there's more. Many companies have a policy that when analysts have to stay at work past 7:00 (basically every night), they get their dinner paid for. Given the cost of the restaurant is located in the financial district, this perk can quickly add up to a lot of money, and many analysts quickly become a dining connoisseurs.

Other perks often include fees for cell phone or Blackberry account, without a cab ride to travel home late, and the occasional opportunity to celebrate with other bankers on a lavish closing dinner. With all these opportunities to save money for a long time, analysts often have a hard time finding ways to spend your money.

career development

After three years of investment banking grind, many analysts choose to return to school for an MBA. If they did not turn up late nights and long hours, they may decide to pursue a career in the industry by taking an associate position in corporate finance. Associate positions are usually geared towards recent MBA grads, but depending on the company, some analysts may be promoted to the associate level without an MBA.

If you decide to leave the analyst, investment banking together - and many do - they can often leverage the experience to move into a position that would otherwise require more experience. Moreover, many analysts to wreck twice the average hours of workers and must perform their work at the level of intensity that is among the highest in the business world.

Although many people are attracted to investment banking because of high wages, intense way of life causes many to leave after only a few investment banking godina.Pravi happiness for most people is giving impetus to his career, as experience is gained.

before jumping headlong into the corporate world of finance, the prospective analyst should carefully weigh the reality of the position and ask whether this is really something he or she is looking for - and ready for the

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