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An investment banking analyst evaluates finances, advises clients on investments, facilitates mergers and acquisitions, and identifies funding for new businesses. They analyze financial statements, create financial models, and advise on mergers and acquisitions. A degree in finance, economics, or accounting is required, as well as effective communication skills. The job also involves sales and socializing.
An investment banking analyst evaluates the finances of various companies in certain business sectors, advises clients on potential investments, facilitates mergers and acquisitions, and helps identify or secure funding for a new business. Investment industries covered by an investment banking analyst include finance, retail and finance services. When performing a financial analysis of a company, an investment banking analyst analyzes a company’s earnings and earnings, as well as market trends in the industry in which the company conducts its business. Typically, a business degree from a college or university is required to work as an investment banking analyst. Candidates for a position as an investment banking analyst must also have effective oral and written communication skills.
The primary duty of an investment banking analyst is to review financial statements to discern the financial health of a specific company or industry. An investment banking analyst may also create financial models that predict a company’s future revenues, profits, or stock prices. This information may influence an investment bank’s choice to underwrite or purchase stock in a corporation. Analysts also advise clients on mergers, merging of two companies and acquisitions, purchase of one company by another.
Investment banking analysts may also protect clients as part of their duties. Typically, investment banks provide potential clients with a brochure detailing the services and benefits they offer, based on research conducted by a business analyst. A financial analyst may also place “cold calls” – phone calls to potential clients who do not expect such communications. These calls usually involve the analyst trying to sell a service or advising an existing client to invest in a particular company or venture. The analyst can earn a commission if he successfully completes the sale of the service or stock.
Due to the quantitative nature of the job, a typical investment banking analyst is expected to have a degree in finance, economics or accounting. These disciplines also expose a potential candidate for the position of analyst to financial statements and allow him to maintain his skills in identifying strong and weak companies and develop an intimate knowledge of economic and investment markets. People who work in investment banking may be required to share their research with colleagues or supervisors. Consequently, an investment banking analyst must be articulate and able to submit written reports in a clear and concise manner. This position also has a sales component; analysts must be well-versed in socializing as a result.
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