An investment banking analyst assesses the financial health of companies in specific industries, advises clients on potential investments, facilitates mergers and acquisitions, and assists in the identification of or securing funding for new ventures. Energy, retail, and financial services are among the investment sectors covered an investment banking analyst. An investment banking analyst looks at a company’s profits and earnings, as well as market trends in the industry in which the company operates, when conducting a financial analysis. Working as an investment banking analyst typically necessitates a business degree from a college or university. Candidates for investment banking analyst positions should be able to communicate effectively both orally and in writing.
An investment banking analyst’s primary responsibility is to examine financial statements in order to determine a company’s or industry’s financial health. An investment banking analyst may also develop financial models that forecast a company’s future revenues, profits, or stock prices. Such information could influence an investment bank’s decision to underwrite or buy a company’s stock. Analysts can also help clients with mergers (when two companies merge) and acquisitions (when one company buys another).
As part of their job, investment banking analysts may be responsible for securing clients. Investment banks typically provide potential clients with a brochure outlining the services and benefits they provide, which is based on research conducted a business analyst. A financial analyst might also make “cold calls” to potential customers who aren’t expecting to hear from them. Typically, the analyst is attempting to sell a service or advising an existing client to invest in a specific company or venture during these calls. If the analyst successfully completes the sale of the service or stock, he may be paid a commission.
A typical investment banking analyst is expected to have a degree or background in finance, economics, or accounting due to the quantitative nature of the job. These disciplines also expose a potential analyst candidate to financial statements, allowing him to hone his skills in identifying strong and weak companies and gain a thorough understanding of investment and economic markets. Investment bankers may be required to share their research with their peers or supervisors. As a result, an investment banking analyst should be articulate and capable of producing clear, concise written reports. As a result of the sales component of this position, analysts should be comfortable socializing.