Investment banking is a lucrative and in-demand industry for grads with an eye for big numbers. If you want to break into investment banking, the first thing you need to know is that there are many different types of investment bankers. Some of them specialize in M&A, some in IT, and some do both.
What Is Investment Banking?
Investment bankers advise companies and governments on mergers, acquisitions, and initial public offerings (IPOs).
Why Become an Investment Banker?
The salary and bonus potential for investment bankers is quite high. Their clients include “Fortune 500” companies, which means the people you’ll be advising will be making millions or billions of dollars.
The hours can be long and irregular, but if you’re a hard worker who thrives under pressure, investment banking hours shouldn’t present a problem.
Investment bankers are passionate about their work: they get satisfaction from seeing their clients succeed.
How Do I Break Into the Investment Banking Industry?
University happens to be one of the best ways to get a foot in the door. The majority of investment bankers have an undergraduate degree, and many have advanced degrees.
Since so many investment bankers are college grads, undergraduates have a competitive advantage over graduates when applying for entry-level positions.
There are also a number of scholarships and fellowships available specifically for MBA students; corporate sponsors provide these funds to help recruit and retain employees.
How Many Different Types of Investment Bankers Are There?
As stated earlier, there are many different types of investment bankers. Some specialize in M&A, while others do IT consulting and a few even do a combination of the two.
Where Do Investment Bankers Work?
Investment bankers don’t work in one place; instead, they work from home offices that are located all over the world. They usually have to travel to their clients’ offices or other standard places to meet and negotiate deals.
What is M&A and Who Does it Involve?
Mergers and acquisitions (M&A) is the buying and selling of one company by another.
M&A is most commonly seen in the technology, aerospace, media, and financial industries.
It’s also common to see M&A in telecommunications companies, such as AT&T or Verizon. The reason for this is that these companies are frequently bought out by telecom giants from other countries; India-based Tata Group recently purchased the UK’s Jaguar Land Rover division from Ford for $2 billion, for example.
Other Considerations with Getting into the Banking Industry
Investment banking is an exciting field, but it’s important to have your priorities straight: there will be times when you work extra hard, and there will be times when you work much less than you’d like.
The good news is that because the hours can be irregular, you have quite a lot of freedom with how you spend your time. If you’re organized enough, this means that it’s easy to find opportunities to start from home businesses or even just create an additional income stream on your own.
Overall, the investment banking industry is one of the most prestigious and lucrative fields out there. The most important thing to remember is to stay flexible — you have to keep your priorities straight and be willing to work a lot less hard sometimes.
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