How to Become an Investment Banker
To become an investment banker, you must have strong analytical and social skills. You should be able to exceed your clients’ expectations. Having an MBA or business degree is also an advantage. Besides, the job requires strong people skills and negotiating skills. JPMorgan Chase has carved out a niche for itself in the financial industry, and other global giants are following in its footsteps.
As an investment banker, you will advise clients on high-level financial matters, including mergers and acquisitions. You will advise clients on a company’s value and the number of shares to release for sale. You’ll work closely with companies to create deals, which can be lucrative. An investment banker’s work is highly regulated, and licensing exams are an essential part of the job.
An investment banker typically begins his career as a junior associate. In this role, he or she supervises financial analysis performed by analysts and works closely with more senior bankers. This experience helps you build up the business and develop skills in financial planning. In addition, he or she will spend long hours running computer analyses. He or she will also prepare financial reports and documents that senior bankers use to pitch new ideas.
An investment banker can advise both buyers and sellers in mergers and acquisitions (M&As), as well as manage the entire process from start to finish. Mergers and acquisitions are a common way for companies to get acquired, and an investment banker can help determine the value of a company by analyzing its profitability, cost structure, and general industry.
Investment banks have working groups that specialize in different market sectors and industries. An industry coverage working group is headed by a managing director and comprises several directors, vice presidents, and associates. The goal of the working group is to generate new business for a company and to service existing ones. Besides bringing in new clients, an investment banker’s job involves writing industry reports and executing transactions.
The job of an investment banker is lucrative, but it requires a high level of education. An entry-level analyst can earn from $80,000 to over $200K a year. Most investment banks prefer associates with graduate degrees. After completing three years, the most successful analysts are promoted to associates. This is a position where many hours are spent, and success is highly rewarded.
An investment banker is a financial professional who assists corporations and governments raise capital. In addition, they also provide strategic advice to clients in specific transactions. Their duties can range from debt financing to corporate broking to brokerage services. Investment bankers tend to be self-confident and persuasive and work hard to make sure their clients’ best interests are met.