Hi all,
I know that research is a totally different animal. Does Research play any role when, let say, a coverage group is pitching a deal or working on a transaction?
Thanks
| +137 | Piper Sandler in talks to acquire PWP | 61 | 4h |
| +125 | Interns without return offers, careers & perspective | 11 | 8h |
| +114 | UBS Appears to be Exploring Sale | 14 | 11h |
| +102 | Just One More Year | 11 | 2d |
| +82 | Are all these UBS postings bullshit? | 21 | 10h |
| +70 | Bringing Deals as a Vice President | 20 | 10h |
| +66 | Paradise Is Paradise | 5 | 16h |
| +37 | Q&A | Investment Banking Analyst, UBS | 2 years in investment banking | 11 | 1d |
| +35 | Q&A | Incoming Associate, Bulge Bracke, AMA: Career switcher (tech sales/BD → MBA → BB TMT IB), return offer | (6 years in Tech/Accounting) | 6 | 4d |
| +32 | M&A is Paradise | 1 | 2d |
Career Resources
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.
you steal their projections. beware of the chinese wall though
Research does not play any role - it is illegal for IBD to interact directly with Research on a deal
Thanks guys. do you mind to explain why it's illegal? Thanks
Because as an analyst, if I know Company X is going to issue equity soon, likely causing the stock to drop because of the dilution, I might go out and put a sell on the company before it happens and tell our accounts to sell or short the stock. Or if I know Company Y is about to be acquired for a big premium I'll go out and upgrade the stock and tell our accounts to jump into the name.
Research does play a role in investment banking business, but in obviously a regulated one. In research, the analyst's views on a company can often dictate whether a company feels inclined to do business with the banking side (main motivation for the wall). Also, if banking is launching an equity offering / follow-on research needs to get on board and help educate the sales forcce as well as come up with a valuation for said company.
I even know of a few companies whose management loves the ER analyst so much they end up giving business to banking.
Obviously research has its own goals / targets, but it isn't completely cut off from banking.
Et laboriosam est omnis ut. Atque aut autem commodi sed sint minima. Sed natus ipsa necessitatibus dolores nostrum temporibus itaque. Laudantium ipsum pariatur ullam neque aut omnis.
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...