What do investment bankers actually do?

I have no idea what it is you do in IB, across all ranks, and would love some insight. Lets say someone wanted to actually understand what the job entails, what would you say?

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Analyze financial statements and industry trends to produce cutting-edge analysis in pursuit of complex mergers and acquisitions. Interface with management teams on menus of strategic options to drive shareholder value. Synthesize your Managing Director's vision with the available information to flesh out a cohesive story.

Jk, align logos and get told your footnote is missing a period at 2am.

 

Lets say someone wanted to actually understand what the job entails, what would you say? 

Use search bar

 

Execute corporate transactions on behalf of clients..

Lots of moving parts in corporate transactions including making marketing materials, managing data rooms, organising auction / roadshow processes, negotiating terms and pricing, managing stakeholders like lawyers / due dil specialists, advising clients on best practices etc.

There’s of course also the work that goes into pitching for new work. 

Basically bankers are agents who a) win client mandates and b) represent those clients throughout a pretty lengthy / involved process. 

Junior bankers do most of the heavy lifting on docs / operational tasks, mid-level bankers project manage processes and allocate work to junior bankers and senior bankers win work and manage client relationships. 

After all is said and done and the transactions close - the firm charges a fee on the value of the transaction. Because banks run pretty lean but generate large revenues, they can afford to pay their core workers (bankers) more than in other industries with larger overheads. Senior bankers especially get paid based on revenue they bring in so the pay averages 7 figs for generating 8-9+ figs in revenue. 

 

For sell-side process, preparing CIM, teaser, financial model, process letter, management & board presentation, coordinating CDD/FDD/LDD, dealing with ad-hoc requests, managing VDR/Q&A, not much involvement in SPA as an analyst. Buyside will involve us reviewing the CIM and financial model and advising client on valuation to bid, after shortlisted, perform confirmatory DD to formalise offer. If not on live deal, work might involve responding to RFPs, preparing random discussion materials showing ideas, potential targets, etc.  

 

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