How do you guys answer the “why investment banking” question?
Here’s the answer I’m thinking about using for my interview. Please don’t judge spelling or grammar as it’s a first draft. Let me know your thoughts.
After speaking to some people I knew who worked in investment banking, I learned over time that investment banking is an area that gives you a broader understanding of the core decision making company executives do for their company, and when seeking some of the services an investment bank provides. I knew from my experience not knowing the next step to take as an executive of my first start-up, decision making from a financial perspective is really important to understand for the future of your company. I then found investment banking as a career choice I wanted to enter as it is the best way to learn the importance of understanding the quantitative decisions an executive must make when either seeking an investment bank’s services or when making decisions to run their business. I really got hooked on the idea of being part of the advisory side of a company so I can better understand why companies and executives make certain decisions. For insurance choosing to raise equity versus debt financing or choosing to merge with a competitor versus selling off the entire company. I knew I would learn through my experience in building company pitch decks, and financial models a solid understanding of the reasoning some of the brightest company executives or clients of the firm choose to go about some of the key decision makings that they do when pursuing some of an investment bank’s services. Rather than simply financial modelling experience that I can gain anywhere else, I feel that investment banking is the best career choice to strengthen my overall knowledge of key core decision making in companies that you wouldn’t normally get to see in another area in finance. So after my second-year internship in equity research, I went on to work in private equity where I could gain similar exposure to investment banking but from the perspective of a buyer within the buyout team.
Sounds quite good to me.
I’d cut the part where you say “for instance…” and stress a bit more the relationship part of the business which indeed is the core of investment banking IMO.
I don’t know where you’re interviewing at but if the MD/team take care of middle market transactions I’d reinforce what you’re saying with something like that being a banker is worth since you’re going to help entrepreneurs selling/restructuring/doing something big to their most precious thing that took years/decades to build.
Forgot this if you’re interviewing for places where 99% of the work comes from companies not run by the owner.
My experience is also two internships in equity research and one internship in middle market private equity.
Not familiar with the Canadian/NA scene but be careful saying where you’re interviewing publicly
I suggest you to edit your post and remove the company name… potentially you could be identified based on the info you’ve posted here.
It seems that you have a strong profile, be prepared to be asked “Why IB instead of PE” and there the relationship part of the business comes in.
Keep in my that I’m giving you the prospective of an EMEA monkey (though some friends of mine recruited for your region)
Okay thanks,
I took your feedback and edited my answer to this. What do you think?
After speaking to some people I knew who worked in investment banking, I learned over time that investment banking is an area that gives you a broader understanding of the core decision-making company executives do for their company, and when seeking some of the services an investment bank provides. I knew from my experience not knowing the next step to take as an executive of my first start-up, decision making from a financial perspective is really important to understand for the future of your company. I then found investment banking as a career choice I wanted to enter as it is the best way to learn the importance of understanding the quantitative decisions an executive must make when either seeking an investment bank’s services or when making decisions to run their business. I really got hooked on the idea of being part of the advisory side of a company so I can better understand why companies and executives make certain decisions.
I am also attracted to the fact that investment banking is a relationship-building industry, and business often relies upon networks. You see this often where managing directors will help bring the firm more business through diving into their personal network. Being a team player who is highly social, and values networking and maintaining relationships I really see myself taking advantage of this skill when it comes time to enter a leadership role as an investment banker.
I have also demonstrated my interest in investment banking through working at a private equity firm in my junior year where I could gain similar exposure to investment banking but from the perspective of a buyer within the buyout team. Within that role, I had the chance to work closely with senior analysts when providing due diligence for a buyout. I really enjoyed my experience and I want to now transition to the sell-side where I work on advising these transactions.
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