How much technical/industry knowledge (i.e. pharmaceuticals) do you guys need in banking?
I'm at an MBB and studied finance in college. My group works a lot with financial sponsors, banks and lawyers on PE deals.
The amount of technical knowledge required to understands some business flabbergasted me when I first hit the job. When I build market models for i.e. pharmaceutical players I only understand like 30% of what I am plugging into the model and am fully reliant on our internal knowledge experts that guide me.
My question: is that similar if you are in specific IB groups (i.e healthcare, O&G, industrials). Or are you guys always much more concerned about the three statements without really digging too deep into industry/business drivers?
It is impossible to understand a company’s financials without a solid understanding of its industry and economics.
It's very similar in banking. The first 6-12 months is basically drinking from a fire hose of industry knowledge and more subtle or contextual nuances that you only pick up from fucking up and lots of reps. Just don't fuck the same thing up twice. Depending on the group, we'll have access to more or less information. A top-tier BB will have everything you could ask for: every major market research outlet, expert interviews, internal materials on comps, similar deals, etc. Groups lower down on the food chain will have less resources and you need to get scrappier. That typically means whatever initiating coverage reports you can get your hands on, investor call transcripts, and good ol' Google (you'd be surprised what you can find if you know how to look).
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