Sponsors for Educational Opportunity
Investment Banking Overview Part 2
Patrice Mitchell & Andrea M. O’Neal
Co-Managers, Investment Banking Program
Roles within Investment Banking
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Managing Director
 Manages the relationship between the client and the bank
 Negotiates terms of the deal and fee structure
Vice President
 Manages the deal/pitch process
 Reviews all work before it goes to the MD
Associate
 Checks the analyst(s)’ work
Analyst
 Builds the financial model
 Performs valuation analyses
 Constructs the pitchbook
Summer Analyst
 Assist the analyst
Analyst Responsibilities
 Performing financial valuation, discounted cash flow (DCF) and
multiples-based analyses (comps)
 Building and using financial models
 Financial models are tools constructed in Microsoft Excel
used to forecast a Company’s operating performance
 Preparing presentation materials and drafting registered
documents for the SEC
 Pitchbooks are presentations made to clients highlighting
idea(s) to address company-specific needs
 Drafting sessions are meetings between the client, bankers
and lawyers where the aim is to generate a “clean”
document for the government and potential investors
 Conducting industry and product research
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Attributes of a Good Analyst /
Summer Analyst
 Attention to detail
 Strong work ethic
 Quick learner
 Ability to communicate effectively
 Understanding of accounting principles
 Solid quantitative, analytical and technical skills
 Familiarity with Microsoft Office – tech savvy
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Benefits of a Position within
Investment Banking
 Exposure
 Unrivaled access to senior management of
multinational and multibillion-dollar
corporations
 Prestige
 Advising corporate clients on financings and
M&A opportunities
 Participation on the “headline grabbing”
deals
 Transferable Skills
 Modeling
 Valuation – Comps, DCF
 Financial Statement Analysis
 Multitasking, proven work ethic
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Day in the Life
9:00 a.m. – Rush out of the apartment to the subway station for a 30-minute commute.
9:30 a.m. – Quickly check e-mail, calendar and status of current projects
10:00 a.m. – Quickly browse the Wall Street Journal, Yahoo! Finance and Bloomberg to get
up to speed on market news
10:30 a.m. – Start working on the ever-growing list of things to do. Review financial model for
project #1 before sending it to other members of the deal team. Prepare comps for project #2.
1:10 p.m. – Grab lunch; sometimes an hour, most of the time you need to eat at your desk.
1:30 p.m. – The associate on project #1 reviewed the analysis and provides constructive
comments, which are “turned” (incorporated) into the model.
2:30 p.m. – Conference call to discuss model for Project #1, which produces more
issues/questions that need to be addressed.
3:30 p.m. – Start the pitchbook presentation for project #2 by putting together a “shell”
(outline).
4:00 p.m. – Grab coffee with co-workers
4:15 p.m.– Get back to the office and get cranking on the revised model; Complete revisions
and send to the deal team before 6:00 p.m. deadline. Send shell of presentation (Project #2
to associate)
5:30 p.m – Send out the revised model (after the associate review it)
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Day in the Life (cont.)
6:00 p.m. – Start working on project #3; this one requires updating an old pitchbook for a
different client with current market data
7:30 p.m. – Dinner time. Order with a bunch of colleagues from online delivery service
8:30 p.m. – Return to cubicle with a heavily, marked-up copy of the presentation for project #3
11:00 p.m. – After turning all the comments, send the revised version to associate who does a
final review and sends it to Production.
11:15 p.m. – Reopen the model for project #1, continue working on analysis
12:30 a.m. – Finish up the comps for project #2, send them to the associate for review.
1:00 a.m. – Production calls to inform the analyst the books are done; “Flip the books” which
means turn each pitch book to make sure all pages were printed correctly and are in the
appropriate order
1:30 a.m. – The books are flipped and send them by car service to one of the attendees of the
meeting the following day.
2:15 a.m. – Stop working on model and comps when all previous comments are incorporated
and issues are resolved; catch a cab to get home; rest for another busy day
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Next Steps
 Zoologic
 Intro. to Securities Markets
 Intro. to Corporate Finance
 Intro. to Analyzing Financial
Statements
 Time Value of Money
 Intro. to Equity Valuation
 Recommended reading list
 Training the Street: Valuation
 Liar’s Poker
 Monkey Business
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 Vault Career Guides
 Invest Banking
 Finance Interviews (quick
math and case study)
 Top 50 Banking Employers
 Webinars
 SEO alums
 Enroll in finance and
accounting courses
More Resources
•Periodicals
•Wall Street Journal
•Financial Times
•BusinessWeek
•Internet
•http://dealbook.blogs.nytimes.com/
•http://finance.yahoo.com
•http://money.cnn.com
•http://bloomberg.com
•http://investopedia.com
•SEO Partner Firm websites
•Television
•CNBC
Questions?
Patrice Mitchell
pmitchell@seo-usa.org
Andrea O’Neal
aoneal@seo-usa.org
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