Finance Careers: Investment Banking Associate

As the second year MBA student chatter at a cocktail party, one of the main topic of conversation was to land investment banking offers. While the reputation of investment banking took a beating after the 2008 financial crisis, corporate finance jobs are still incredible way to gain valuable work experience and earn a nice paycheck.

of the financial crisis, many see investment banking have changed forever, and in many ways, it has. But there will always be an IPO, mergers and buyouts and take advantage of to raise capital for business growth, which means that it will be a place for those who have what it takes to succeed in corporate finance.

for an MBA, a typical entry job in the corporate finance department as an associate position. It's tough slot, but it is one notch above analyst position pays well and leads to a large customer exposure and business experience. So what will it take to ensure that MBA Associate position?

of B-schools to I-banking
Yes, corporate finance, seeks bright individuals who can clearly articulate the business insights, and will dazzle clients with social skills. However, the level of associate, investment banks are also looking for MBAs who have strong finance experience and driven and disciplined.

Yes, corporate finance, seeks bright individuals who can clearly articulate the business insights, and will dazzle clients with social skills. However, the level of associate, investment banks are also looking for MBAs who have strong finance experience and driven and disciplined.

In terms of experience, bankers are ideally looking for candidates with previous experience in corporate finance. Such experience can be pre-MBA stint as an analyst or a summer internship with an investment bank. Companies also tend to value candidates with a Big Four accounting experience, commercial banking experience, or other places that require a significant exposure to finance and accounting.

Interviews may involve several rounds, culminating in a "Super Saturday" cycle in which the top candidates meet all the bankers to the company for another round of talks and gatherings - giving the company a chance to see what the candidates are the best cultural fit.

As with most interviews, candidates must be prepared to impress the company with his intellect and skills, but more importantly, they must prove they are a nice person who will do well with company employees. For applicants who received offers, it is time to prepare for life as an associate investment banking.

Corporate Finance bek
There is good reason why employees earn a healthy salary and a bonus every year. In short, they are out of the corporate finance office. May they have analysts who can be assigned to projects, but they have to juggle multiple projects from different bankers with complicated schedules. Management analyst is not an easy task, because each of them brought to its maximum and its project load.

Like analysts, associates can begin their day at 8:00 and not finish it until 1 or 2:00 - and sometimes they can not go home at all. They come in on weekends to stay on top of projects and ensure that documents and presentations completed with enough time for thorough editing. Associates typically put in as much time as analysts -. Often 80-100 hours a week in New York companies, or 60 to 80 hours in companies with Wall Street

Deal cycle
associates a key operational role in the business cycle of corporate finance departments. The business cycle, 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.

in the field, 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 čestovrednovanje the company 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.

What staff?
Analysts tend to work at the front end of the deal cycle, working in the field of books for the bankers. Associates are also working on the front end of the deal cycle, monitoring and editing work of analysts in preparing pitchbooks.

But the staff also assist in the execution of deals - preparation of documents for the sale of various transactions, editing, brochures, and even described the due diligence materials with potential buyers in M & A and other transactions. How to gain the respect of colleagues of senior bankers, they can get to accompany senior bankers on pitches and become more involved in business development.

first-year associate in the beginning can perform many of the same analysis as well as analysts - comps, DCFS, LBO, etc. - but the staff at the end of the transition to a higher level of performance. Instead of bursting through the theme of financial models that analysts do some redesign of these models and develop models separately for each bid.

Much legwork that staff perform involves expanding client Finances shared with potential investors, or making personal information memorandum for the M & A transactions and private placements. Due to the nature of the job, colleagues often work closely with clients, speaking with CEOs, CFOs and other members of the management team to gather relevant information for sales documents.

Associates quickly learn to charm clients while at the same time relying on them to provide timely, detailed information for sales documents. Corporate Finance transactions can be very stressful on the clients (and staff) and staff must be able to navigate the difficult situation in which customers have become tired and emotional side of business process.

perks of being an associate
Despite all the pressures and long hours, there are some payments to associates who stick around. Depending on the company, starting salaries for associates can range from $ 100K to $ 150K, but when you add in the bonuses which are often north of 50% of the total fee can range from $ 150k to $ 250k.

Many companies have a policy that when employees have to stay at work past 7:00, they get their dinner paid for. Like analysts, associates stay past 19:00 almost every night, so no dinner can quickly add up to a lot of money.

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.

career development
If the associate chooses to leave the world of investment banking, their experience can often be influenced to move to a position that would otherwise require more experience. Investment banking is an incredibly rigorous work with colleagues to double-wracking hours of an average worker and perform their work at the level of intensity that is among the highest in the business world. No wonder they are easily distinguished by the time in other careers.

for users who hang around, two or three years of experience often leads to promotion to the vice presidency. Opening hours for the vice president can be a bit lower, but the trip was a good bit more.

high-vice can jump to the senior vice president and general manager, after a few years. Although the hours of service of those positions can be a bit more appealing than an associate position (senior bankers still be found in the office on many weekends), they also bear more responsibility for bringing in new business.

Like any career, considering who associate position at the investment bank should look beyond just the pay and prestige and think about whether or not they will enjoy working. Some of the most valuable benefits of investment banking has to offer are an incredible experience working with companies in the Central time -. And a sign that the experiences of the city