What Do You Need To Get A Job In Investment Banking? - Exam And Interview Tips | EAIT

July 15, 2019

What Do You Need To Get A Job In Investment Banking?


Investment Banking is a specific domain in the Banking sector where an investment banker’s job is to make advisory-based transactions, etc. on behalf of the corporate, government, etc.

The position includes the task of creating capital for the government, corporate companies, and other entities as well as organizations.

Investment Bankers assist the process of capital funding with the help of investment in the corporation or the government authority, which is concerned with raising its capital.

For doing so, the banks provide underwriting, which in simpler terms means finding potential clients.

Further down the road, if the corporation is looking to share its stock with investors, then the investment banks also have to handle the IPO (initial public offering).

In this job, underwriting, mergers, and acquisitions are provided to the client, to create the capital for them.

Opportunity in Investment Banking after course
The Investment Banks that are involved in the process act as intermediaries between the investors, who have the money to invest, and the corporations, who are in search of some capital to scale up and grow their business.

An individual can be a business major, who’s interested in Investment banking and is looking forward to entering its vast industry. And for entering that industry, there are some skills which the individual should possess, in order to handle the work smoothly and with expertise.

The Important Skills

As it is not very difficult to guess, Investment Banking requires a lot of skills. Some of them are financial modelling and valuing.

And in Investment banking, as an employee, the individual has to spend a lot of time building all the financial models and also the valuation process on Microsoft Excel.

If you are wondering who the job is suitable for, then the answer to your question is that a business enthusiast or even an analyst may join the job. But it’s mandatory to have some knowledge about all these essential skills.

The particular skills required for Investment Banking are:

1)Financial Modelling: Dealing with all kinds of financial modelling activities is one of the essential requirements. And further in financial modelling, the job would be to build 3-statement models, Discounted Cash Flow (DCF) models and other financial models which are helpful to the corporations, etc.

2) Business Valuation: As the name suggests, business valuation deals with a wide range of analyzing models such as the company analysis, etc. There is a whole range of valuation methods which the individual should know so that he can work efficiently.

3) Presentations: The individual should also have the knowledge of making presentations and pitchbooks, so that he or she will be able to bring the potential clients and customers, with the investment plan.

4) Transaction Documents: For entering the Investment Banking industry, you should also have the knowledge of preparing documents such as the Confidential Information Memorandum (CIM), term sheets, etc. Making such kinds of documents is also an essential part, which cannot be overlooked.

5) Negotiation: As an essential part of Investment Banking, the individual who is passionate about Investment Banking, should also have the skill of negotiating. There are a lot of negotiations between the investors and corporations, and all of them are to be handled perfectly.

6) Relationship Management: This part is also of utmost importance and building relationships with buyers even at the hardest of times, and having an optimistic approach towards all of them comes in this category.

This is an essential part of this specific field of banking, which most people don’t understand. Dealing with all types of clients, and that too with high energy is certainly something, which the individual as a trainee can’t ignore.

Dealing with the clients who are looking for proper customer service also comes under relationship management. Therefore, interpersonal skills are also crucial in bringing new clients and business from the market.

7)Sales Development: It’s also essential that you are always aware of the new potential clients who are entering the market, and are looking for investment banks. Increasing your sales by signing a deal with them, and business development is also another essential skill.

As we discussed, the list turns out to be quite long. But this list of pre-requisite skills provides an overview of your journey in Investment Banking, and it also helps you in analyzing your potential. With all these skills, you can certainly join the industry of Investment Banking, and reach great heights.

If you are planning for a career in Investment Banking but are overwhelmed with the list above then don’t worry Investment banking courses will help any aspiring investment banker get equipped with all skills necessary for a career in this field. 

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