Investment Banking Overview

1. Investment Banking Overview

2. Investment Banking - Function • Investment Banking Function within a Investment Bank • also called “Corporate Finance” • Includes Advisory Services on M&A, Foreign Exchange, Valuation, Financial Strategy, Issuing Debt and Equity, etc • Client-driven industry • Separated from rest of bank by “Chinese Wall”

3. What do Investment Bankers Do? • Represent Companies for Sale • Value Company (Financial Models) • Write Selling Memo • Conduct Due Diligence • Identify and Contact Buyers • Create Management Presentation • Negotiate with Buyers • Close Transaction

4. What do Investment Bankers Do? • Represent Companies Buying Other Companies • Value Company (financial models) • Conduct Due Diligence • Draft terms and determine price offered • Negotiate with Seller

5. What do Investment Bankers Do? • Represent Companies issuing debt or equity (Underwriting) • Value Company (financial models) • Write Prospectus (or other SEC filings) • Create Management Presentation • Take Company on Roadshow

6. Associates Role • Essentially Responsible for EVERYTHING • Manage up (MDs, VPs) and down (Analysts) and outward (Clients) • Financial Modeling – Intricate (LBOs, structuring) to mundane (comps) • Excel Experts • Writing/Presentations – Selling memos, management presentations, commitment memos, Roadshows • Word and Powerpoint Experts • Putting Pitches together • All of the above (and including binding, copying page counting) • Research

7. Associates Role • Key Skill Area Requirements • People skills: High • Sales skills: Medium • Communication skills: High • Analytical skills: High • Ability to synthesize: High • Creative ability: High/Low • Initiative: High/Medium • Work hours: 80-120/week

8. Pros and Cons • Pros • “Doing Deals” • Fast paced/Intellectually Driven Environment • Meeting CEOs and CFOs • $$$ • Skills • Cons • Hours, Hours, Hours • Work can be monotonous • Job security/Economic Environment • Strong Personalities