Interested in Healthcare Banking
Hi Monkeys!
As recruiting is upon us sophomores, does anyone have resources for learning more about the healthcare industry? For example, I am looking for the Deutsche Bank Pharma primer if somebody has a copy.
Also, I was wondering what healthcare-specific technical questions I should be prepared for.
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Also curious. HC banking seems like paradise. Work on the largest deals, corp dev exits tend to pay better than other sectors, endures all market cycles. Surprised why more people don’t choose to focus there.
Also means the HC groups can have longer hours. It’s interesting cause there’s so much variety of business models within HC - services/med tech/life sciences/biotech/HCIT, but also doesn’t always feel as tangible as traditional businesses (e.g. modeling out drug development pipelines or patient volume builds for a med device).
Would also add to the above that the sector knowledge gap adds to the ramp most analysts / new associates experience. In addition to getting up to speed on finance and general banking know-how, you also have to comprehend a very complicated, science-heavy sector in order to lay out ideas without looking like an idiot. Like banking in general, it’s still a relationship game, but you also have to do your homework on the technical / science aspect to not pitch stupid ideas.
I love the sector and have enjoyed my time so far, but would say it feels like a lot of extra work learning about the technical side of the space compared to a FIG group, for example.
Thanks for the response!
Do you think you need to have a background or a decent understanding of biology or chemistry to understand the field? I'm going more into finance and data-science so I don't know if that will be enough for healthcare.
Almost every HC banker I spoke to all work 90+ hours but yes, some truth to this especially for life sciences / pharma.
Boutique HC banks sometimes even have MDs/PhDs amongst their ranks and IMO, I found boutique HC bankers extremely impressive vs. BB / MM (haven't interacted with an elite boutique HC bankers just industry specific boutique ones).
I recommend reading Bain Healthcare PE year in review reports. A pretty easy to understand and comprehensive primer.
Work in HC coverage at a BB. I was not asked anything HC-specific technical questions (like valuation specific or EBITDA multiples or something like that); however, I think it helped that I familiarized myself with the sub-sectors of HC and how those businesses operate (how do they generate revenue, which are capital intensive, what are trends, what are recent M&A transactions, major players in each subsector). Also, going through here and in networking calls, find out what banks are known for what subsectors or who they work with. I think people care a lot more about showing that you do some research and have a sense of what you're getting yourself into rather than saying "I want to work in HCIT and with Hospitals" and they do like Pharma or work with MM sponsors.
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