graduate finance association corporate finance september 27, 2006
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Graduate Finance AssociationCorporate Finance
September 27, 2006
Corporate Finance• Agenda
– Internship Panel Introductions– Presentation Part 1– Internship Panel Q&A– Presentation Part 2– Q&A– Networking – Doc’s Place
• Leads – Kevin Lowe: Dow Chemical ([email protected])– Ariel Rubin: Fischer Scientific ([email protected])– Omer Chaudri: Texas Instruments ([email protected])– Andrew Sutherland: Mine Safety Appliances ([email protected])
– Josh Beck: Dow Chemical ([email protected])– Joseph Hurley: Air Products ([email protected])– Ravi Madasu: Fischer Scientific ([email protected])– Jaime Juarez: Union Pacific ([email protected])– Dan Root: Price Waterhouse Coopers ([email protected])– Pantea Izadseta: IBM ([email protected])– Jill Yellock: Federal Reserve Bank New York ([email protected])– Raju Gupta: Amazon.com ([email protected])
Problem: “Corporate finance” means many different things
Definition– “Corporate finance” is an umbrella term for finance-related
positions that exist within non-financial services industry businesses
– Corporate finance professionals evaluate and manage the money associated with their company’s businesses
What is Corporate Finance?
Cash Management And Capital Allocation!!
What is Corporate Finance?
Proctor & Gamble
• Consumer goods
• Founded 1837
• 300 products/160 countries
• P/E: 23.9
• 138,000 employees
• $68.2 B/year
• Marketing driven
That’s still pretty vague!! Firm and Industry are Very Important
Genentech
• Healthcare - Biotech
• Founded 1976
• ~15 products
• P/E: 87
• 9,500 employees
• $7.8 B/year
• Bio-science driven
Consider this …
Very Different Needs!!
Typical Structure
Corporate
Finance
R&D
Engineering
MarketingOperations
Production
HR
Corporate Finance Touches them All!!
Typical Responsibilities
Business Finance
•Ops Analysis/Financial Ops
•Strategic Planning
•Capital Budgeting
Business Development
•M&A
•Project Feasibility
•Joint Ventures/Licensing
Treasury
•Capital Structure
•Cash Management
•Risk Hedging
Audit/Controller
•Internal Audit
•SOX
•Performance Measurement
Typical Skills and Attributes
• Communication• Leadership and Influence• Long-term focus• Quantitative analysis/Financial ability• Teamwork and collaboration• Deal with different functions
Typical MBA Roles
Treasury
Corporate financial planning
Raising funds and cash management
Acquiring and disposing of assets
Identifying and hedging risk
Customer credit analysis
Strategic Planning
Long-term strategy formulation and evaluation
Competitive analysis
Ensuring that business units adhere to strategy going forward
Determining financing needsAcquisitions and asset sales
Implementing financial plansFinancial reporting
Capital budgeting and prioritizationCompetitive analysis and strategyFinancial planning and projection
(long and near term)
Corporate
Business Unit
• Culture, Culture, Culture!!
• Job function
• Structure within organization
The One Thing You Can Count On …
Every Company Is Different
Internship Panel
Kevin Lowe: Dow Chemical
Ariel Rubin: Fischer Scientific
Omer Chaudri: Texas Instruments
Andrew Sutherland: Mine Safety Appliances
Pros– Heavily recruited– Mostly stable hours– Strategic thinking– Drive company goals– Senior people– Variety– Build/run a business– Great exit options
Pros and Cons
Cons– Slower monetary
advancement
– Can be mundane
– Process Driven
– Company/culture dependent
Undergrad Work
Experience
GMAT Scholarships, etc.
Leadership/Teamwork
TepperGPA
Primary Criteria
Secondary Criteria
What Companies Look For
Skills/Knowledge Networking
Career Switching• Good chance in Corporate Finance
• Good spring board to other careers
• Highlight cross-discipline skills
– Analytical ability
– Leadership
– Results oriented
– Team work
• Focus on companies looking for your background
What Should You Focus On?• Find out the details!!
• Network– Make recruiter put a face to the name– Talk to everyone – Students/Alum/COC/Recruiters– Informational Interviews– Be aggressive – not annoying
• Know the position and related finance topics– Company– Industry
• Behavioral Interview Skill– It’s almost assumed the skills are there
• Solid Resume
Thank You
Q&A
Networking & Social Event @ Doc’s Place
IBM - Organization• IBM Brands or Business Segments
– IBM Global Services (IGS)– IBM Global Finance (IGF)– Systems Technology Group (STG)– Software Groups (SWG)– Personal Systems Group (PSG) – Sold to Lenovo
• IBM Global Services: Lines of business
– Business Consulting Services
– Integrated Technology Services
– Strategic Outsourcing Services
– Application Management Services
– e-business Hosting Services
• WW Group vs. Geographic groups
– Americas: North, South, Central
– EMEA: Europe, Middle East, Africa
– AP: Asia Pacific
IBM - Culture• Collegial atmosphere, helpful colleagues• Remnants of old IBM culture• Truly Global company• Stability in Americas - can cruise for next 30 years, especially in NY• Flexible Hours
– Work from Home– Flex Friday’s
• New York vs. Other Locations– New York - Armonk, Somers: people tend to work more (55 - 60 hours)
• Former Wall-street people• Proximity to Corporate Office• Late nights during quarterly close
– Satellite Offices - Raleigh, Austin: normal hours (40 – 45 hours)
• Limited Interaction with Senior Management• Few networking events for Interns
IBM - Roles• Typical Roles:
– Financial Analyst (FA) for a brand at a Geography
– Informal Rotational Program
• Line of Business in a Geography WW Consolidation Finance Role Pricing Analyst Treasury
• Duration: 12 -18 months
• Career Path:
– Financial Analyst Sr. Financial Analyst Line manager for GEO/WW Consolidation Manager for GEO/WW ???
• Expected to move into new roles every 12-18 months
Fisher Scientific - OrganizationProvider of products and services to the scientific community(65% consumables, 35% equipment, apparatus, etc.)
Fortune 500, $5.5B in annual revenues, 17,500 employees worldwide
Matrix organization:Distribution Units: Research, Safety, HealthcareManufacturing UnitsFunctional Groups: Finance, Sales, Marketing, Sourcing etc.
Aggressive grows through M&A activity and organic growth
Strong Tepper presence in the Finance organization
Fisher Scientific - CultureAggressive, data driven, meritocracy.
Finance leads the company, unlimited opportunities for people who deliver results.
Very formal in Hampton, NH
Fisher Scientific - RolesMBA Rotational program – three one year rotations, high visibility to the executives, including the CEO, COO, Vice Chairman
Finance is the center of the company:Divisional Finance: Research Finance, Safety Finance, Healthcare Finance -Business analysis, customer profitability, deal structuring, division control and more – in business units.
Supply Chain Finance – supply chain management and profitability improvement – in business units.
Treasury – Hampton, NH
Corporate Development – new markets development, M&A – Hampton, NH