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Investment Banking Discussion Thread - Page 28

post #406 of 619
Quote:
Originally Posted by pseudonym View Post

What are the reasons why people go into banking?
I mean, beyond the pay, exit opps, etc. Or is it all BS reasons like wanting to help companies grow?


I went into banking because I wanted to work for a PE firm or hedge fund. Unless you're well-connected or have a 3.8+ GPA, you need to do your analyst stint before any good buyside shop will hire you. I have no talents and no particularly strong entrepreneurial inclinations, but being a math/philosophy double-major, I liked thinking through problems. I like the idea of learning a company or situation inside out, taking a view on it, and strategizing how to execute on that view.

 

The pay is what attracts people who aren't generally interested, and what keeps people like me from just saying "fuck it" after 6 months. (The first year of being an analyst is probably the most miserable working experience anyone can go through...but by your third year, you can pretty much do the job on autopilot with no stress.)

 

None of this is to say the work isn't interesting -- in theory, it is. And when I was an analyst, it still felt cool to be part of a team of fewer than half a dozen bankers working on multi-billion dollar deals, especially compared to so many other jobs in the "Office Space" business world, like auditor or the ubiquitous "account executive." Now that I'm on the buy-side, I do sort of miss the pace and multiple deals of banking. (Private equity is *really* slow and process-oriented.) But in the end, I had absolutely no desire to be a client-facing marketer/agent/middleman, which is essentially a senior banker's primary function.

post #407 of 619
Quote:
Originally Posted by mrb87 View Post


I went into banking because I wanted to work for a PE firm or hedge fund. Unless you're well-connected or have a 3.8+ GPA, you need to do your analyst stint before any good buyside shop will hire you. I have no talents and no particularly strong entrepreneurial inclinations, but being a math/philosophy double-major, I liked thinking through problems. I like the idea of learning a company or situation inside out, taking a view on it, and strategizing how to execute on that view.

The pay is what attracts people who aren't generally interested, and what keeps people like me from just saying "fuck it" after 6 months. (The first year of being an analyst is probably the most miserable working experience anyone can go through...but by your third year, you can pretty much do the job on autopilot with no stress.)

None of this is to say the work isn't interesting -- in theory, it is. And when I was an analyst, it still felt cool to be part of a team of fewer than half a dozen bankers working on multi-billion dollar deals, especially compared to so many other jobs in the "Office Space" business world, like auditor or the ubiquitous "account executive." Now that I'm on the buy-side, I do sort of miss the pace and multiple deals of banking. (Private equity is *really* slow and process-oriented.) But in the end, I had absolutely no desire to be a client-facing marketer/agent/middleman, which is essentially a senior banker's primary function.

How did you get into banking with math/philosophy?
post #408 of 619
Quote:
Originally Posted by Khayembii Communique View Post

How did you get into banking with math/philosophy?

Almost half of our Analyst class comes in with some kind of liberal arts degree. Pretty much the only kids that come into this business with exposure to banking-related coursework are Wharton undergrads.
post #409 of 619
Quote:
Originally Posted by Pennglock View Post

Almost half of our Analyst class comes in with some kind of liberal arts degree. Pretty much the only kids that come into this business with exposure to banking-related coursework are Wharton undergrads.

So banks admit analysts with ugrad liberal arts degrees based on what? Their GPA/EC's and stuff? This sounds contrary to everything I heard in the thread earlier, unless I'm missing something here which I think I am.
post #410 of 619
Quote:
Originally Posted by Khayembii Communique View Post

So banks admit analysts with ugrad liberal arts degrees based on what? Their GPA/EC's and stuff? This sounds contrary to everything I heard in the thread earlier, unless I'm missing something here which I think I am.

maybe you missed the first page?
Quote:
Originally Posted by georgesoros View Post

2. Investment banks love to recruit at liberal arts schools. The bank really has no need for an analyst with a technical degree since modeling financial statements doesn't really take any more than basic math. Quant and technical degrees are useful for a lot of hedge funds and trading firms, but all you really need for IB is some reasonable level of intelligence, a positive attitude, and good worth ethic. Banks do tend to hire quite a large number of Econ and Finance majors though.
post #411 of 619
Quote:
Originally Posted by Khayembii Communique View Post


So banks admit analysts with ugrad liberal arts degrees based on what? Their GPA/EC's and stuff? This sounds contrary to everything I heard in the thread earlier, unless I'm missing something here which I think I am.

 

Based on them going to top-20 liberal arts schools: think Williams, Amherst, Wesleyan, Wellesley, Bowdoin, etc

 

3.60+ GPA, decent extracurriculurs, and good interview

post #412 of 619
Quote:
Originally Posted by concealed View Post

Based on them going to top-20 liberal arts schools: think Williams, Amherst, Wesleyan, Wellesley, Bowdoin, etc

3.60+ GPA, decent extracurriculurs, and good interview

What about good liberal arts schools that aren’t in liberal arts sub group according to places like Princeton review because they have more non LA majors then actual LA majors…?

Not that my GPA was above 3.6 but I don’t know a lot of other ECN majors out of 30-40 that landed very good jobs from my graduating class.

There is one that I know of with a analyst type position, but most is back office type of work like myself.
post #413 of 619
Quote:
Originally Posted by OmniscientCause View Post


What about good liberal arts schools that aren’t in liberal arts sub group according to places like Princeton review because they have more non LA majors then actual LA majors…?
Not that my GPA was above 3.6 but I don’t know a lot of other ECN majors out of 30-40 that landed very good jobs from my graduating class.
There is one that I know of with a analyst type position, but most is back office type of work like myself.

 

To speak more locally, Northeastern/BU/Bentley grads are 97% not landing a BB analyst role in IBD, and an immortal lock that once you start in BO you won't be making the switch

post #414 of 619
Great, cant wait for the next few years of my life! I didnt go to those 3 schools but they were all schools I got into.
post #415 of 619
Quote:
Originally Posted by concealed View Post

 

Based on them going to top-2 liberal arts schools: think Williams, Amherst

FTFY

post #416 of 619
Quote:
Originally Posted by concealed View Post

To speak more locally, Northeastern/BU/Bentley grads are 97% not landing a BB analyst role in IBD, and an immortal lock that once you start in BO you won't be making the switch

You know someone recommended that I start in BO then get the CFA charter and move to FO. He's the only one that recommended it to me, though, and he claimed he's seen a bunch of people do it. I agree with you more than him.

Also some HF PM told me his job isn't that hard and I could easily do it, and that he'd look for internships for me but they shouldn't be too tough/unrealistic to get.

In short, I've heard a lot of weird fucking shit from a lot of different people.
post #417 of 619

Once again, Asset Management != IBD

post #418 of 619
Quote:
Originally Posted by concealed View Post

Once again, Asset Management != IBD

You mean about the HF PM? Yeah I guess it's off subject but still sounded ridiculous. The other guy I mentioned was a prop trader.

Anyways, I have a question that's actually on topic for this thread. Surprising, I know. I'm taking some grad level courses to build an alternative transcript, which also conveniently allows me access to everything this university has to offer. The business school sent out an email advertising an M&A case competition and so I emailed the guy saying I'd like to get in on it. He emailed me back saying sure and just to fill out a questionnaire that included the following yes/no questions:

Do you understand financial statements and financial ratios?
Can you calculate EBITDA?
Do you understand a Discounted Cash Flow (DCF) model?
Do you understand a Leveraged Buyout Model?

I've gone through Wall St. Training so I understand all of these to a greater or lesser extent (financial statements moreso because I personally invest). I'm worried that this experience is insufficient, though, and if I say "Yes" I'd be overstating my knowledge. Like I've never gone through and constructed a DCF or LBO model from scratch myself, but I understand them in a basic sense and can certainly learn more about them in the immediate future.

You guys think it would be a big deal if I said yes to these based on what's taught in Wall St. Training or should I say "No" and risk being disqualified from participating?
post #419 of 619
Quote:
Originally Posted by Khayembii Communique View Post

You mean about the HF PM? Yeah I guess it's off subject but still sounded ridiculous. The other guy I mentioned was a prop trader.
Anyways, I have a question that's actually on topic for this thread. Surprising, I know. I'm taking some grad level courses to build an alternative transcript, which also conveniently allows me access to everything this university has to offer. The business school sent out an email advertising an M&A case competition and so I emailed the guy saying I'd like to get in on it. He emailed me back saying sure and just to fill out a questionnaire that included the following yes/no questions:
Do you understand financial statements and financial ratios?
Can you calculate EBITDA?
Do you understand a Discounted Cash Flow (DCF) model?
Do you understand a Leveraged Buyout Model?
I've gone through Wall St. Training so I understand all of these to a greater or lesser extent (financial statements moreso because I personally invest). I'm worried that this experience is insufficient, though, and if I say "Yes" I'd be overstating my knowledge. Like I've never gone through and constructed a DCF or LBO model from scratch myself, but I understand them in a basic sense and can certainly learn more about them in the immediate future.
You guys think it would be a big deal if I said yes to these based on what's taught in Wall St. Training or should I say "No" and risk being disqualified from participating?

All of those are taught in undergrad level 1 corp finance so you should probably know them. Id say yes, those can be refreshed on in a few hours and you should be able to understand them in full.
post #420 of 619
Quote:
Originally Posted by Khayembii Communique View Post


You mean about the HF PM? Yeah I guess it's off subject but still sounded ridiculous. The other guy I mentioned was a prop trader.
Anyways, I have a question that's actually on topic for this thread. Surprising, I know. I'm taking some grad level courses to build an alternative transcript, which also conveniently allows me access to everything this university has to offer. The business school sent out an email advertising an M&A case competition and so I emailed the guy saying I'd like to get in on it. He emailed me back saying sure and just to fill out a questionnaire that included the following yes/no questions:
Do you understand financial statements and financial ratios?
Can you calculate EBITDA?
Do you understand a Discounted Cash Flow (DCF) model?
Do you understand a Leveraged Buyout Model?
I've gone through Wall St. Training so I understand all of these to a greater or lesser extent (financial statements moreso because I personally invest). I'm worried that this experience is insufficient, though, and if I say "Yes" I'd be overstating my knowledge. Like I've never gone through and constructed a DCF or LBO model from scratch myself, but I understand them in a basic sense and can certainly learn more about them in the immediate future.
You guys think it would be a big deal if I said yes to these based on what's taught in Wall St. Training or should I say "No" and risk being disqualified from participating?


A basic DCF, Comp Co and Comp M&A Analysis for someone who hasn't done many before took most people in my undergrad valuation class at least 30 hours. But overall are not that complicated. If you PM me I can send you some notes/books that would really help you understand them and outline step by step what goes into constructing a DCF or LBO model.

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