Investment Banking Prep
Hi I'm looking for help in learning how to create a valuation for a company using excel. I want to know how to create a DCF valuation particularly.
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
YouTube. Google.
Go for it.
Pre BB IBD Preparation (Originally Posted: 12/04/2014)
Hey guys,
I will be starting with a BB in its IBD in a week and would love to hear all the inputs here.
A little on my background: I never interned or worked in IBD at all before - thanks to this forum with tons of amazing information and some very helpful peeps and a lot of digging on M&I, I was able to land an offer.
However, my lack of experience makes me think I have to work twice as hard as other analysts in order to land a decent bonus.
What do you guys think I can do in 1 week before I start? What is the most important thing I can learn? Is it VBA, Excel Modeling or just accounting knowledge?
Furthermore, how can I stay sane and healthy working 100 hours a week in the office?
What is the difference between a top analyst and an average analyst? Is it just the prior has more stamina and is able to do more work without making mistakes while maintaining positive attitude?
Thanks guys. Anyone with any questions regarding my recruiting experience feel free to PM me! I will try to help out as much as I can.
Would be great if you can post a thread about your recruiting experiences!
Congrats on the offer! First off, I'll be joining as a first year next July so take my word with a grain of salt.
My cousin who works in a PE firm told me that investment banking bootcamp might add value (in a long run it all comes down to what you are made of, but he saw couple analysts being able to stand out during training, and first few months in the job among the first years).
Also one of the associates in my group [where I'll be next year] recommended me a book called Valuation by Mckenzie. (He told me real work is much simpler than models in the book, but it is definitely something you want to look into when you have spare time).
P.S. Since you've mentioned VBA and modeling... I used to code since middle school and knowing VBA and Excel helped me a lot during my internship. (At least know enough to reverse-engineer simple macro within VBA)
Thanks so much!
You mean the Investment Banking Bootcamp from Wallstreetoasis? Does the bootcamp last for one week or just several days?
I will definitely look into that book by Mckenzie.
Anyone else has any advice regarding pre work preparation that will allow me to stand out and earn decent bonus (not bottom of the class?)
The book is by McKinsey & Company*... below is a copy of the pdf
http://www.gsm.pku.edu.cn/resource/uploadfiles/docs/20120710/2012071001…
How to Prepare for IBD: Masters Students (Originally Posted: 05/15/2013)
Hi y'all,
I am an incoming MSA/MPA student at a top-10 accounting program. I am aiming to do post-master IBD, but will "settle" for transaction advisory gigs.
Based on the information on the resume attached, how can I best improve my profile to have a shot at MM/Boutique ibd jobs? Sadly, I cannot do an SA stint this summer (doubt I can land one anyway), since I will be in school full-time during the summer as part of the MSA/MPA.
What can I do to prepare? BIWS modeling? What else?
Thanks y'all, the help is truly appreciated!
Your problem will be that you have no IB experience. You will be competing against undergrads with top BB and MM SA positions, as well as MSF/MPA/MACC students who have plenty of experience.
I understand my chances are slim, but is there anything that might help?
i was in a similar situation. my masters was a 2 semester program, but i extended it to 3 and cold called and landed a boutique year round interview. network like cray
Redo your resume. Network. Look for an internship. Get banking interview guides and know your shit cold.
A MAcc is for accounting. Be prepared to explain why you are studying that and want to work in banking.
Thanks for the quick response. As soon as I got the cal from admissions I started to network. Most of the school's MPA/MSA alumni in IB are in MMs so I started with them. Good responses, helpful. I can't get an internship for the summer, did you mean IB internships for fall? I have my spin for "Why MPA/MSA" down pretty good, and I don't think it will be a big problem according to the alumni I have spoken with. How do you recommend I re-do the resume? Thanks.
What? "Most" of your schools MPA/MSA alumns are in MM IBs?
network and call/email all people in the industry from your current school/college.
Why did you get an MSA/MPA if you wanted to go into IB?
I want to do Big 4. But I want to see if I got what it takes to make it into IB.
Also, a good amount of MSA students from my program go into IB/Capital Markets. From contacting 6 of them, I got a good feeling about the prospects.
What type of finance classes have you taken? Do you understand IRR, NPV, WACC, etc?
I understand all of the concepts you listed, and I can answer questions on them cold. The International Business program at my UG was finance-heavy. I took 5 finance courses (2 intro finance), including one solely on M&A. Learned valuation multiples, DCF from scratch, research reports, APV, LBOs, etc. In addition, the MSA program I will be starting has about 5 core acct classes, with the rest being electives one can choose from finance, marketing, etc. I plan on taking all finance classes for those electives. I know the school name will help me get interviews (best I could do with my UGs name was peddling insurance), and I want to have a realistic view of what to expect and how to prepare.
You are in good shape then. Definitely do BIWS to prep for interviews and convert your resume (as others stated) to the typical IB format (search for resume books online or even in WSO).
Thanks peinvestor2012!
Any more tips/recommendations?
IB prep (Originally Posted: 03/15/2010)
Hi I'm a rising junior interested in IB. I have a couple of questions:
I've taken: Financial Accounting, corporate finance Microeconomics, Macroeconomics, Econometrics, International Finance Calculus, Mathematics of Finance, Probability, Statistics, Linear Algebra, Differential Equations
Is it necessary to take Managerial Accounting as soon as I can?
I have ordered the M&I BIWS Financial Modeling Course and I figure that I'll complete it this May. Is it necessary for me to study the Wall Street Prep Premium Package after M&I? Are they of the same level? What should I do after M&I?
I would like to study C++ or Excel VBA this summer. I'd like to learn both but I figure I'd be better off if I focus on only one and know it really well. So which one is better to learn in preparation to get a summer internship?
Thanks!
Definitely VBA for Excel. There is no way that studying C++ for one summer will put you in a position to write your own programs that will actually be useful anyway
Take accounting classes. Accounting for Mergers and Acquisitions, anything where you're accounting for a complex transaction. Finance is less important than accounting when it comes to i banking.
Thanks.
So should I take "Intermediate Financial Accounting" or "Introductory Managerial Accounting", given that I can only take one this summer.
And do you think I can self study Accounting for Mergers and Acquisitions? My college doesn't have that class next year.
Financial - Managerial has very little to do w/ banking. As far as M&A self study, you could - or they'll train you in FT for that sort of thing.
the best thing to do is take like a wall st. prep class because you will be able to see what they actually do in ib.
I would recommend AnEx program if you have the financial support from your parents. I took the program last summer and I really like it. It has two parts: training and an internship. They kinda worked hand in hand to strengthen your modelling skills. PM me if you need more info.
I gonna take that wall street prep course too.. talks lot about M&A LBO staff~ sounds interesting..
Coming into IBD BB Off Cycle - How should I prepare? (Originally Posted: 01/19/2014)
I am coming from a year on the buyside to an IBD BB gig off cycle (I start in February) with no previous IBD experience. The guy who hired me said I would have to start without the benefit of a formal training program but that they would help me get up to speed. How should I prepare for the role? Should I buy some modeling courses?
I know they mentioned teaching me but they all seem very busy and I want to be useful as soon as possible.
Yes, do some practice modeling. Maybe reach out and ask them if they can send you some old models that use in the group.
Curious, what were you doing on the buyside and why the switch? would appreciate it info
When I was in university I cared a lot about lifestyle and this firm offered a great (40-45 hour a week) lifestyles for about 55k but once I got in it I realized I wanted to work a lot harder, make a lot more money, and work in a more fast paced environment.
You're basically going to want to learn modeling and the fundamentals of finance. Presuming you've gotten exposure to financial statement analysis at the most basic level, you can hop on Macabacus.com and teach yourself how to model DCFs, LBOs, and mergers pretty easily.
If you want to learn things from scratch, I recommend you buy one of the self-study modeling courses from a vendor like BIWS or Wall Street Prep.
want to know too
Small thing but make sure your attention to detail is impeccable in regards to formatting/presentation, very important at the analyst level.
Brush up on intermediate accounting, financial statement analysis, and modeling. You can buy an all in one course from BIWS or other related services. Is your BB willing to pay for you to attend a modeling course taught by Training the Street or a similar firm, if not I would highly suggest attending one of their live trainings on your own dime, it'll help you get up the learning curve.
Also stay healthy, eat right, exercise, etc. Your lifestyle is going to change drastically and it is something you need to be ready for mentally and physically.
I-Banking Preparation (Originally Posted: 01/16/2014)
How ya all doing mates, I need your advice, but I want to hear this from people with some experience. To develop my skills in I-banking what is more helpful reading some special books on the subject or CFA? Your advice is highly appreciated,
delete
Preparing for IB! (Originally Posted: 04/05/2014)
Hey!
Next year I will be attending Amherst College. Although it doesn't have much name-recognition (especially where I live), I feel like I will learn a lot, so I'm super excited.
Do you guys have any specific advice for college (especially if you are familiar with amherst) that would help me break into IB right after graduation?
Thanks
jesus christ.... do well in school (considering you're attending a fantastic one at that), get involved in a few things you actually like, and most importantly have fun.
Dude, you're in high school still. Enjoy your last few months. Besides, you don't know if you're gonna do IB for sure, why would you plan on it before even entering college?
Patrick,
Might want to change the name from Wall Street Oasis to College Oasis.
Best, TargetoIBD.
Your comments this week have been particularly unintelligent for a supposed "target education". He isn't asking for college advice -- he's asking the best way to position himself. Read WSO's mission statement.
OP, my advice would be to have diverse experiences. Adventure life a little bit -- get involved with sports, try to get girls who you think you wouldn't have a shot with, take odd classes, etc. Just be an interesting person and see what happens to you throughout. If you still want to do IBD after that, you'll have an interesting story to network/tell in interviews that will make people not think you have been having wet dreams about having a Goldman Sachs name badge since you hit puberty (which you sound like from your post)
Best of luck in the fall!
Amherst is an amazing college and is highly regarded in educated circles within the Northeast. It's not like you're going to Podunk U or East Alaska STATE U or whatever.
Study hard, get a 3.6+, join a club at the leadership level and make time to volunteer. Goldman loves people who volunteer. Stay social and "human"- don't become a finance/math robot.
Apply for some internships soph and junior year, add value at whatever bank you join and you'll be fine.
Good luck
As others have said, study hard and get good grades, but beyond that become social and a likeable person who others like to hang out with. Spend more time (especially your first year) making friends and building relationships, going on weekend trips, partying, attending sporting events, etc. For me:
Candidate A > Candidate B
Candidate A: 3.5+ GPA, has basic understanding of business/technicals/company, has a cool background and story to tell, is fun to hang out with a sociable from their experiences.
Candidate B: 4.0 GPA, nails all technicals like they are reading from Damodaran's book, social activities all involve business and finance, not fun to talk to or hear their story.
So basically all of Stern
just kidding!
But by all means, we would take the 3.5 guy.
Thanks everyone!!!
Make sure you work really hard to get a solid internship for your freshman summer. Internships build on each other and it'll make things infinitely easier and set you ahead of your peers
Thanks guys! What kind of internships would a freshman get? I feel like investment banks would hardly if ever hire freshman.
PWM at a BB would be really solid, so would a small boutique IB firm. Corp Fin at a F500 would also be great. Also, I'd recommend joining Amherst's IB club if they have one.
Also, I am really interested in philosophy and I'm trying to plan out my classes. Do you think I would be a disadvantage if I double majored in philosophy and economics at a LAC?
Thanks urchin!
Veritatis est cupiditate ad maiores beatae libero. Facilis a porro velit id. Quod consequuntur architecto et non mollitia eius. Quia eum omnis nobis ut earum et est. Dolores ad consequatur est tenetur eum veritatis. Repellendus omnis officiis in asperiores harum sit. Rerum dicta libero magni aut dolores iste fugiat.
Dolorum voluptatem asperiores velit tenetur eaque. Sed veritatis harum iusto iste labore. Assumenda facere qui nulla vero. Est nihil hic ut asperiores. Culpa labore et non natus nisi ea rerum.
Sit eos voluptatem consequatur est omnis. Et quaerat quis earum eos est pariatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Enim dolorum quis et deserunt corrupti aliquid laboriosam. Aut voluptatem ab debitis architecto. Placeat voluptatem saepe quo. Officiis et ut officiis sunt. Deserunt vel officiis necessitatibus voluptatem.
Ab perferendis adipisci repudiandae libero dolores labore ut. Sint fuga rerum illo enim laboriosam labore.
Ipsam aliquam qui aut ut corrupti. Perspiciatis sed cum quos dolor eos nihil. Aperiam aut vitae corrupti non earum omnis.
Ipsa fuga minus quae dicta officiis et. Numquam ut quaerat laudantium nihil. Aut quis autem dolore voluptates debitis ullam omnis.
Saepe sint excepturi ad dolore et. Et rem adipisci minima neque perspiciatis. Et facere ab labore facere occaecati nostrum ut. Itaque aut enim culpa quis impedit autem et. Quam ipsam similique sed ut unde aut nihil. Molestiae et in delectus blanditiis ut.