Welcome to the Finance Club
Kickoff Meeting
Ross School of Business
University of Michigan
September 2005
Agenda
Overview:
 Financial Services
 Timeline
 Finance Club Overview
Functional Areas:
 Corp Finance
 Investment Banking
 Research/Asset Management
 S&T
 PWM
Wrap Up
 To Do’s
 Company Presentations
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Financial Services Landscape
EVC
Club
–Venture Capital
–Private Equity
–Turnaround Mgmt.
Finance
Club
–Corporate Finance
–Investment Banking
–Capital Markets – Syndicate
–Research
–Sales & Trading
–Asset Management
–Private Wealth Mgmt.
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Investment
Assoc.
–Asset Management
–Equity Research
–Inst. Sales & Trading
–Private Wealth Mgmt.
–Personal Investing
Internship Search Timeline
It’s Sooner Than You Think
Sept. / Oct.
Company presentations
Form study groups, review Course pack, and begin profiling potential
employers
October 14
Resume deadline for iMpact
Oct. 18-21
1st Term Final Exams
Oct. 24-26
Wall Street Forum
Nov. / Dec.
Ross Corporate Finance Forum
Informational interviews
Jan. / Feb.
On-campus interviews!
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Finance Club Overview
“The Finance Club is a student-run organization
that provides members interested in finance
careers (or finance-related) the resources, tools,
and guidance needed to successfully reach
their professional goals.”

Members of the Finance Club have a strong commitment
towards building Michigan’s brand in Finance.
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Your Resources:
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OCD
Alumni
Faculty
Second Years
Each Other
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Quotes from Alumni & Recruiters
“The Finance Club at Michigan is the best of its kind in the
nation because it has to be.”
“If you have to, miss a class. NEVER miss a Finance Club
meeting.”
“The most successful students are those that treat the Finance
Club and the recruitment process as a fifth class.”
“Sometimes we like to ask individuals what they did in Finance
Club over the past week just to see if they have been preparing
themselves”
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Corporate Finance
 CFO and management team
 Forecast revenues/expenses - budgeting
 Invest in projects to maximize shareholder value
 Treasury
 Cash management, Invest excess cash
 Controller
 Internal auditing
 Risk Management
 Country risk
 Market risk
 Strategy and Business Development
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CF - Just the Facts
Corporate Finance
Firms
Where
Hours
Major corporations across industry, and banks
North East, Mid-west, West Coast
8:00 am to 5:30 pm
Pros
Lifestyle, work-life balance, C-level exposure, overall view of
organization, CFO/CEO track
Cons
Can get monotonous, some positions potentially heavy on
accounting, steady pace
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Investment Banks
 Raise debt and equity capital for clients
 Maintain active securities markets enabling cost
effective distribution
 Financial advisory services
 Mergers & acquisitions
 Divestitures
 Restructuring
 Merchant banking (private equity investment)
 Syndicate: selling securities to “the street”
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Investment Bankers
 Perform industry analysis
 Create quantitative models to determine return on
investment for all stakeholders
 Perform sensitivity analyses based on different scenarios
 Offer the client multiple financing options
 Leverage the Capital Markets to execute these
proposals
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IBD - Just the Facts
Investment Banking
Firms
Top investment banks
Where
Primarily New York, also Chicago, L.A., San Francisco, London &
Hong Kong
Hours
9am to whenever: expect 80+ hr. weeks
Key
Firms
Citigroup, CSFB, Deutsche Bank, Goldman Sachs, JPMorgan,
Lehman Brothers, National City, Piper Jaffrey, UBS
Pros
Challenging, fast-paced, top company interaction, strong
compensation
Cons
Very demanding, less work-life balance, can be stressful, job
security directly tied to the market
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Research / Asset Management
Research
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Also known as a Sell-Side analyst
Generates investment ideas for investors
Conducts fundamental analysis of companies within an industry
Identifies factors and trends that drive a company’s or industry’s future
growth and comments on valuation of securities
 Examples: CSFB, Morgan Stanley Deutsche Bank
Asset Management
 Known as the Buy-Side
 Manage a portfolio of securities for other investors
 Buy-Side includes
 Mutual funds, Pension funds, Insurance companies, Hedge funds
 Examples: Fidelity, Janus, Oppenheimer, Apollo
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Research - Just the Facts
Sell-side
Buy-side
Firms
Typically I-Banks
Fidelity, Janus
Where
Primarily New York
Everywhere
Hours
7am to 7 pm, plus weekends
7am to 5:30pm, no weekends
Pros
Pay, entrepreneurial, access to
top executives
Pay, excitement, work/life
balance, clear reward system
Cons
Long hours, hard to differentiate
research
Difficult to find jobs, tough
market cycles
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Sales & Trading
 Represents the public or secondary market where
investors can trade securities
 Traders “make markets” in securities, providing
liquidity to the market
 Salespeople build relationships with the buy-side to
draw trading business to its bank
 Trading and sales desks must work together to be
successful; many internship programs include
rotations in both
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S&T - Just the Facts
Sales
Trading
Firms
Top investment banks
Where
Primarily New York
Hours
7am to 5:30pm + some
evenings
7am to 5:30pm, no weekends
Pros
Pay, expense account lifestyle,
entrepreneurial
Pay, excitement, camaraderie,
hours, clear reward system
Cons
Intensity/stress, insecurity,
cyclical
Intensity/stress, insecurity, narrow
focus
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Private Wealth Management
 Develops and manages relationships with wealthy
investors
 Markets the investment services of the firm
 Advises clients on investment opportunities
 Analyzes client portfolios
 Additionally, provides advice regarding banking, lending
and wealth transfer needs
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PWM - Just the Facts
Private Wealth Management
Firms
Top investment banks
Where
Primarily New York, but smaller offices in most major cities
Hours
7:30 - 6:30 at a minimum - no weekends
Key
Firms
UBS, Citigroup, Goldman Sachs, JPMorgan, Lehman Brothers,
Northern Trust, Bessemer Trust, Morgan Stanley
Pros
Intellectual challenge, fast-paced, strong compensation,
entrepreneurial, personal relationships with clients
Cons
Very demanding, solely responsible for P&L - need to have a strong
grasp of a wide range of products and areas, not just investments
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CONFUSED?
 Conduct Self-assessment- interests, skills, sacrifices
 Schedule OCD counseling appointments
 Realize that finance is a wide field offering many different and
exciting opportunities
 Learn more about the functional areas
 Ask questions- DUMB ONES TO US, smart ones to recruiters
 Second-years are your best resources for information and first-years
are your partners
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To Do’s
 Company presentations begin tomorrow
 Resume book deadline of October 14
 Start forming study groups
 Sign up for FinClub06
 Go to the Finance Club Website
 Sign up for Finance Club
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Company Presentations
 On a daily basis, go to OCD Events and look up which companies are
coming when – look for “Office Hours” too
 Attire is business casual for every event unless stated
 Research a company’s web page before they arrive (vault, wet feet, etc…
are also great resources)
 Ask great questions that show your knowledge about the company, industry,
and market – stay away from personal/specific questions!
 Be a good, courteous listener:
 Do not walk around/leave
 Do not talk
 Do not disregard proper event attire
 Do not eat food
 Do not ask poorly thought out questions
 DO NOT HAVE YOUR LAPTOPS UP
 DO NOT HAVE YOUR CELL PHONES TURNED ON
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Company Presentations
 Be able to “talk the talk”
 Read Wall Street Journal everyday
 Review company/bank websites
 Company overview section / investment bank
 Investor relations / press releases
 Investext for analyst reports, Vault.com, WetFeet
 Be able to articulate early on:
 Why do you want to do IB?
 Why XYZ bank?
 Tell me about yourself
 Most important: listen, learn, and don’t eliminate yourself
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Company Presentations
 Good Questions:
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Questions about their internship program
How the bank is organized
Questions about the bank’s strategy
Deals bankers have worked on
Trends in the investment banking industry
 Bad Questions:
 Too detailed – “Why did your bank’s credit card net income decline by
XX% in the third quarter?”
 Too vague / easily researched – “How big is your investment bank?”
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