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Investment Banking
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  1. Investment Banking Boston University Finance Club

  2. Introductions • Ricardo • Analyst, Technology M&A at Jefferies • Graduated SMG in 2011 with a dual concentration in Entrepreneurship & Finance • Previous Internships • DFJ Esprit • Jefferies • Alex • Analyst at Bowen Advisors • Graduated SMG in 2011 with a dual concentration in Finance & Marketing • Previous Internships • Merrill Lynch • Laven Partners

  3. What is investment banking? • A financial intermediary between investors and companies • Sports agents represent their clients in all major financial matters • Investment bankers represent their clients in all major financial/strategic matters • Investment Banks Generally have 3 Major Divisions • Sales and trading • Broker for institutional clients • Proprietary trading • Research • Corporate finance & M&A • Corporate Finance • IPO • Private placement • Restructuring • M&A • Sellside • Buyside 2010 Total Global Banking Revenue ($USD Billion) The Economist. http://www.economist.com/node/18654578 Financial Times. http://markets.ft.com/investmentBanking/tablesAndTrends.asp

  4. Type of Investment Banks • Bulge bracket • Full service, thousands of employees, billions in annual revenue • Goldman Sachs, Morgan Stanley, BofA/Merrill Lynch, JP Morgan & Co., Credit Suisse, Citigroup, Deutsche Bank, UBS • Full service mid-market • Jefferies, CIBC, Cowen, Morgan Keegan, Needham, Raymond James, RBC, • Bulge boutique • High end, large deals, M&A only • Evercore, Greenhill, Blackstone, Lazard • Boutique • Bowen Advisors, America’s Growth Capital, Capstone, GCA Savvian, McNamee Lawrence, Pagemill, Mooreland, Revolution Partners (acquired by Morgan Keegan), Updata, many others

  5. Introductions • Ricardo • Analyst, Technology M&A at Jefferies • Graduated SMG in 2011 with a dual concentration in Entrepreneurship & Finance • Previous Internships • DFJ Esprit • Jefferies • Alex • Analyst at Bowen Advisors • Graduated SMG in 2011 with a dual concentration in Finance & Marketing • Previous Internships • Merrill Lynch • Laven Partners

  6. What do Investment Bankers Do? Understand the industry, market sentiment and economy Determine the most stable cap structure Consider the best growth alternatives Where does business come from? Bake-offs Relationships Coverage Banker Idea generation by the bank Pitch the positioning of the business, the timing for the transaction and your bank’s capabilities

  7. The Role of an Analyst Analyst Information Associate Senior Level

  8. Pros and Cons • Keeping an appropriate life / work balance is key Pros • Personal growth • Technical • Analytical • Presentation • People skills • Working on Deals • Advise Senior Management • Compensation • Career development • Cons • 80-130 hour weeks • ~19 hours a day • 7 days a week • Iterative Process • “Culture” • www.mergersandinquisitions.com

  9. How to get in the field? • Networking • Internships • VC • Hedge Fund • PE • Interview • Research: Corporate hierarchy, division, past performance, current news and events • Show that you are eager to learn and work hard • Mention that you are always on time and are able to meet deadlines • Work on your people skills

  10. Exit Opportunities & Alternatives Exit • Venture Capital • Private Equity • Hedge Funds • Market leading industry firms Alternatives • Asset Management • Corporate Development

  11. BU Finance Club • Boston University Advantage • Strong general management program “The Harvard Business School takes an approach to learning that says that all business problems are interconnected”1 • Apply for summer internships in finance related jobs now! • Semester abroad  internship • LinkedIn cold call Jeremy Shinewald, Founder & President of mbaMission. http://www.youtube.com/watch?v=9Y6022aNtnQ

  12. Questions?

  13. Back up slides

  14. Links • Mergers and Inquisitions • www.mergersandinquisitions.com • Investment Banking overview • http://www.youtube.com/watch?v=gRSJG6QB03I • Financial Times – League Tables

  15. How is IB affected by the market & economy? • ECM • Market sentiment • Trends in the market • Appetite • What sectors are in • Monetary policy

  16. Equity • Research • Valuing company • Speaking to management, understanding the business strategy • Evaluating situations • Sales and Trading

  17. Advisory • Capital structure • Growth • Acquisition • Organic • Divest a business • Understanding the market sentiment and economy • Strong market • Higher M&A volume, easier to raise capital • Weak market • Lower transaction volume

  18. Departments of a Full-Service Investment Bank • Equity • Research • Sales and Trading • Investment Banking • Manage the relationship with firms wanting to raise money • Equity capital markets • Manage the relationship with investors (public offerings) • Bridge between IB and Equities

  19. Investment Banking Landscape YTD Deals by Region ($USD Million) (1) YTD Top 10 Banks (1) Financial Times. http://markets.ft.com/investmentBanking/tablesAndTrends.asp