Corporate finance associates work on large deals in capital markets, negotiating and performing due diligence tasks. They build customer relationships and can advance to specialize in a specific industry. Their tasks include preparing merger and acquisition proposals and building bond offerings for clients.
There are many individual roles that comprise the operations of an investment bank and a corporate finance associate is one such position. The individual fulfilling this role works on large deals in the capital markets, such as initial public offerings (IPOs) in the stock markets or bond offerings in the debt market, alongside more senior officials. Corporate finance associates participate in the negotiation process and may be involved in performing the due diligence and research tasks leading up to a transaction. They are not mere spectators while decisions are made by senior investment bankers.
Industry professionals in jobs associated with corporate finance are often employed by investment banks, including large institutional firms and independent boutique banks that may focus on smaller businesses. Over the course of a career, an associate can advance and take on greater responsibility along the way. The process can help a young associate identify their strengths and interests related to corporate finance. It may be an entry-level position and this person may participate in broad coverage of the business sector, especially if he or she is employed at a large financial institution. Upon achieving some level of success in this role, an individual may advance to participate in deals involving a specific industry, such as energy or healthcare, which provide an opportunity to gain expertise in a specific niche for further career growth.
Even though a senior banker leads the transaction processes with clients, a corporate finance associate also plays an integral role. Associates are expected to create and maintain customer relationships that can continue throughout their careers. Industry connections are a vital part of investment banking, and the process of building relationships begins to pay off for a corporate finance associate.
Associate specific tasks may include preparing proposed merger and acquisition activities for a potential acquisition candidate. This professional can participate in the negotiation terms of a merger, such as the value of a transaction or the way in which the transaction will be financed using debt and equity, for example. A corporate finance associate may be involved in businesses involving the issuance of debt and equity in the capital markets and may begin to focus on one of these segments. On the equity side, an associate can contribute to a client’s desire to raise money by selling shares in an initial public offering, and on the debt side, this professional can build sophisticated bond offerings for clients that expose investors at different degrees of risk.
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