Investment Banking

Boston University Finance Club

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

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

(1) The Economist. http://www.economist.com/node/18654578(2) Financial Times. http://markets.ft.com/investmentBanking/tablesAndTrends.asp

2010 Total Global Banking Revenue

$80

$750

$2,920

IB Retail Other

($USD Billion)

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

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

What do Investment Bankers Do?Understand the industry, market sentiment and economy

Determine the most stable cap structure

Consider the best growth alternatives

Pitch the positioning of the business, the timing for the transaction and your bank’s

capabilities

Where does business come from?

Bake-offs

Relationships

Coverage Banker

Idea generation by the bank

The Role of an Analyst

Market Research, Buyer/Seller Profiles, Comparable/Premium

Analyses, Due Diligence / Data Rooms, Drafting

Materials

Finalize Marketing Materials, (CIMs)

Financial Modeling

Management Presentations,

Pitches, Negotiation

Info

rmati

on

Analyst

Associate

Senior Level

Pros and Cons Keeping an appropriate life / work balance is key

www.mergersandinquisitions.com

Cons 80-130 hour weeks

~19 hours a day 7 days a week

Iterative Process “Culture”

Pros Personal growth

Technical Analytical Presentation People skills

Working on Deals Advise Senior Management Compensation Career development

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

Exit Opportunities & Alternatives

Exit Venture Capital Private Equity Hedge Funds Market leading industry firms

Alternatives Asset Management Corporate Development

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

(1) Jeremy Shinewald, Founder & President of mbaMission. http://www.youtube.com/watch?v=9Y6022aNtnQ

Questions?

Back up slides

Links Mergers and Inquisitions www.mergersandinquisitions.com Investment Banking overview

http://www.youtube.com/watch?v=gRSJG6QB03I Financial Times – League Tables

How is IB affected by the market & economy? ECM Market sentiment

Trends in the market Appetite What sectors are in

Monetary policy

Equity Research

Valuing company Speaking to management, understanding the business

strategy Evaluating situations

Sales and Trading

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

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

Middle & Back Office

Front Office Client

Investment Banking LandscapeYTD Top 10 Banks (1)YTD Deals by Region ($USD Million) (1)

(1) Financial Times. http://markets.ft.com/investmentBanking/tablesAndTrends.asp