An investment banking analyst is not just a bean counter. Their job goes much deeper and involves auditing financial statements, raising capital for growing businesses, and providing research for potential investments. It is a high-stress, high-pressure job. Analysts are expected to be able to hit the ground running on day one, regardless of their prior knowledge or experience in the field. They must also have excellent communication skills and the ability to work well in a team dynamic. For this reason, it’s important to know what you’re getting into when you become an analyst in investment banking.
An investment banking analyst is a role with the goal of giving advice to companies about mergers and acquisitions, raising capital by issuing securities, or helping companies manage their assets by tracking their cash flows. Analysts may also be responsible for valuation, research, or conducting due diligence on a potential investment. The work is highly quantitative and involves a lot of data analysis, excel modeling, and financial modeling. Investment banking analysts may also be responsible for communicating with clients, drafting research reports, or helping create marketing materials for clients. Analysts are often the first point of contact a company has when it comes to raising capital or acquiring another company. As such, analysts have a lot of responsibility on their shoulders. They have to be able to quickly grasp a situation, understand the client’s goals, and create a plan to help achieve those goals. That’s a lot to manage on top of daily tasks like reviewing past company financial statements, organizing data, and creating excel models.
Most investment banks have a two-year post-grad program that graduates become analysts in. This program usually requires you to have a bachelor’s degree in any field, good grades, a high score on the GMAT, and work experience in an unrelated field. Work experience can come from a wide variety of fields, but most banks prefer candidates who have worked in some type of sales, marketing, or consulting role. Make sure to ask your potential bank about the specifics of the analyst program. There may be extra requirements depending on the type of role you’re aiming for. For example, some banks may look for candidates with an accounting or finance background to be quant analysts or candidates with an engineering background to be engineering analysts.
Analyst roles can vary slightly from bank to bank, but you can expect to spend most of your time balancing daily tasks and research projects. Daily tasks include reviewing past company financial statements, creating excel models, reading and synthesizing company data, and preparing presentations for clients. Research projects can range from conducting valuation analysis to creating a strategic report for a company. Successful analysts are organized and can manage multiple tasks at once. They thrive under high pressure and have excellent communication skills to work well on a team with people in different roles. Analysts are also expected to attend industry conferences and be knowledgeable about the latest trends in their field, including new technologies and regulations. As an analyst, you’ll likely work very long hours and have a hectic work schedule. In fact, analysts are notorious for working upwards of 100 hours a week, including weekends. Analysts who succeed in this highly competitive field have to be extremely disciplined, organized, and have excellent time management skills.
As you can imagine, investment banking analysts are under a lot of pressure. The job is considered to be one of the most stressful jobs in the world due to the high expectations placed on analysts. Additionally, the long hours and work schedule can also lead to burnout. Some banks try to combat this by providing wellness programs, sleeping pods, or bringing in psychologists to conduct workshops for employees. However, not all banks have the resources or interest in providing these types of programs. Analysts should be prepared for high stress and should expect to work long hours. If you’re someone who thrives under this type of environment, investment banking may be a good fit for you. However, if you’re someone who struggles with stress or has trouble staying organized, this type of job may not be for you.
After several years as an analyst, you may be given the chance to become a senior analyst or move into a management position. In rare cases, analysts who excel at their job may be given the opportunity to become an associate after just one year. The path to becoming an associate will likely be much more difficult if you don’t have an undergraduate degree in a quantitative field, such as finance or accounting. The best way to advance as an analyst is to do your best work and try to stand out. Your manager will keep an eye out for promotions, but you can also take initiative by networking with people in your firm or finding opportunities to take on new projects or expand your skill set. Some analysts also decide to go back to school to earn an MBA or finance degree so they can move into a higher-level position after a few years of experience.
Investment banking analysts are an integral part of an investment bank. They are responsible for auditing financial statements, conducting valuation analysis, and creating strategic reports for potential clients. Analysts often work long hours, especially during the months leading up to important events like earnings reports or before IPOs. It is a high-stress, high-pressure job, but can lead to very lucrative careers in finance. If you’re interested in this field, make sure to research analyst programs and keep track of your progress toward the requirements.
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