How to best prepare for a summer internship?

mljs54 If it's a industry coverage group (e.g. health care, FIG) know a good deal about precedent M&A deals, recent legislation and its effects, what economic factors impact company valuations, things of that nature. for example, if youre going into FIG, and know a shit load about Basel III and its impact on capital ratios etc and the direction companies will steer re: M&A, specific capital raising most MDs will be fairly impressed

if it's a product group such as lev fin or ECM etc then you're going to want to follow the actual stock market very closely as well as look at precedent deals/transactions that used the product.

if you can demonstrate you know a lot about the relevant industry it will show you have passion for what the group is doing which stands out way more IMO then knowing how to model in excel (any moron can pick it up after a while).

What if you're joining an M&A group? Is it efficient to get a fairly deep understanding of 5+ industry groups that are actively dealt with? Though I feel like this knowledge would be beneficial, I feel like it would also cut into time for other prep and developing modeling skills etc .... Any suggestions?

mljs54 If it's a industry coverage group (e.g. health care, FIG) know a good deal about precedent M&A deals, recent legislation and its effects, what economic factors impact company valuations, things of that nature. for example, if youre going into FIG, and know a shit load about Basel III and its impact on capital ratios etc and the direction companies will steer re: M&A, specific capital raising most MDs will be fairly impressed

if it's a product group such as lev fin or ECM etc then you're going to want to follow the actual stock market very closely as well as look at precedent deals/transactions that used the product.

if you can demonstrate you know a lot about the relevant industry it will show you have passion for what the group is doing which stands out way more IMO then knowing how to model in excel (any moron can pick it up after a while).

What if you're joining an M&A group? Is it efficient to get a fairly deep understanding of 5+ industry groups that are actively dealt with? Though I feel like this knowledge would be beneficial, I feel like it would also cut into time for other prep and developing modeling skills etc .... Any suggestions?

drexelalum11Do NOT spend a grand on a modelling course. That is absolutely retarded.

Prepare by getting plenty of sleep and partying on the reg.

BurnsteinIMO, another good way to set yourself apart during the summer is to ask a lot of intelligent questions. Obviously do your best to not ask the same question twice or a question that you could figure out on your own by spending some time doing a basic search. But a question about the industry that you are covering (assuming you are in client coverage) shows the guys at the bank that your brain is turned on and the you are engaged and interested.

You for sure want to enjoy the months before the summer starts. Day drinking is highly encouraged, particularly on weekdays.

I agree. Another thing is that you have to be very analytical.

Powerpoint formatting stuff would be best to rehash, along with staying up to date with recent news (should be doing that anyways) and reading some quarterly/annual reports. My M&A internship was all about being able to update and create pitchbooks using provided info (quarterly/annual reports, news sites and inhouse info).

Learn up coffee

Dealbook Dealbreaker Economist

It could be overkill, but attempt a merger model on macabacus.com and repeat it until you fully understand the many terms and conditions. It's more important to focus on your understanding of the big picture; focus less on your model format and keep doing a basic model until it "clicks". It's overwhelming at first, but the sooner you top the learning curve, the sooner you'll get to (any) modeling work at your internship, the less amount of revisions you'll have to make on a model and the more recognition you'll get from the analyst/associate double-checking your work.

Learning powerpoint/excel tricks actually does help (but only to an extent because the bank is going to have company-specific macros, their unique formats, etc.) so learning how to navigate fast and use shortcuts can cut down time. Don't focus on speed of running through sheets; just be able to learn shortcuts without constantly referencing TTS/WSP shortcut keys.

Also, focus on learning the little parts of powerpoint/excel you don't really know. I would suggest the Wall Street Prep crash course in excel if you have access to it. It's a good overview.

And... just to say it... relax. You'll eventually learn this stuff when you're there so if you have a choice between doing something really fun for a few weeks or sitting in front of a computer screen... don't be a dumbass. Have fun.

The most important part of your internship will not be your performance on financial analysis. It's the attitude you will have.

Prepare to have a great attitude. That is the key to success over the summer. They will teach you everything else you need to know. Brush up on your accounting and excel shortcuts just to make your life easier, but anything beyond that is relative overkill.

How familiar are you with excel? I found that doing the Breaking into wall street tutorials for excel and modeling were extremely helpful. Don't kill yourself though, they train you for the basics.

Just have some fun and enjoy one of your last few semesters of freedom. I think reading industry primers helped me the most (if you know what group you will most likely get into). Otherwise, refresh your accounting but don't worry too much - everything will be covered in training.

VBA came into handy a few times actually, but I wouldn't bother learning it. You can usually Google helpful macros, and there will likely be an intern or analyst in your group that's the VBA guy anyway.

Don't bother memorizing Excel shortcuts. After your first 100 hour week you'll be a pro. I knew nothing before my summer, but got a hang of shortcuts super quickly.

VBA is useful, but in my experience it isn't that necessary. Re the excel shortcuts, while there are tons of kids who don't have any experience with excel (like literally none), I found that having a foundation in excel makes the first week or two smoother.

And don't kill yourself, brush up on accounting and excel and maybe basic modeling if you really want to get ahead, but spend some time relaxing and patting yourself on the back for getting an offer.

Nothing- relax, enjoy 2nd semester, and pat yourself on the back. Anything you need to know will be covered

Edit- you said you start soon? Soon as in Summer (5 months away) or soon like you are doing a winter internship? If the latter, might be useful to learn some stuff, as I don't believe there is any formalized training (not positive)

You really don't learn/retain anything from training. You learn it while working. Prepping to get ahead will largely be a waste of time unless you don't come from an accounting or finance background.

most people at top schools outside of Wharton don't have an accounting or finance background, so...

Hey, I'm just an incoming analyst so take my word with a grain of salt. Personally, I understand where you are coming from (as a non-target) and I think you are in a good position.

# My question is, besides getting leadership roles and killing it academically, what can I do this upcoming (sophomore) year to make my chances more likely of attaining such an internship? A: Network! It is never too early to start developing connections.

Which banks should I target? A: All of them (BB, MM, Boutiques)! Whatever you do, just make sure you land internship for your Junior Summer.

Do some investment banks have opportunities for sophomores? A: Yes, a quick google search would do the job...

Should I message alum on LinkedIn? A: LinkedIn is a great place to start. Personally I had better response rate via linkedin message than cold email.

Just make sure you reach out to alumni and check back with them on regular basis: it will not only brush up your soft skills, but also will most likely develop into interview opportunities.

Work on your Excel skills and do a financial modeling class on BIWS online(or similar one). I did that and it really worked.

BIWS is great - highly recommended. But if you don't have the money to spend, try Macabacus (www.macabacus.com) for some free materials that are quite stellar.

Get an idea essentially of how models work and why things are done. For telecom, consider trying to get some research reports on local market telecom companies and the market. Get an idea of what's going on in the industry, and the metrics (i.e., for valuations) typically used.

Having some basic foundation in the above helps you think about the things you will do in banking. Sometimes you have so much to do that you're just processing through it - but it's beneficial to know "why" things are done to give you a big picture understanding.

You could also review accounting and financial statement analysis. If you are already an accounting/finance major, you probably don't need the review. I'm assuming your goal is to get a full-time offer at this firm. Other than showing you're capable of doing the job, you need to get along with people there and make them like you.

In addition to hippiehappymonkey's advice, take that 2-3 months to also develop a high-conviction investment pitch (equity or fixed-income) and run it by a few of your colleagues (maybe some FT research analysts and even a PM). That way they see you thinking ahead and act like a full-timer (which is your goal I assume). It's one thing to know how three statements tie together, it's a whole next level if you know how to translate your accounting and market knowledge into actionable trading ideas.

Make the most out of those 2-3 months and I wish you convert it to a full-time job.

read through some valuation/m&a books and perfect your modeling skills. become awesome at excel and powerpoint. enjoy your time and do fun things, you wont have much free time this summer.

Thanks, that all seems like really good stuff. It does seem to be more M&A focused though and I'm interning in ER. Is there anything specific to ER that would be useful to prepare that's not really necessary in other departments?

i would pick an industry of choice and rip it apart, learn the insides and outs of the industry, understand the macro indicators, the business etc.. this will help you apply the theory that you learned in school to a real life situation. modelling is essential whether you are in equity research or in mergers and acquisitions. you will have to create models to store a lot of your information, to incorporate an expected growth rate etc. i would also recommend that you learn the different models through online research. you better be able to rip apart the financials of an industry to produce an accurate growth rate and ultimately forecast the company's results within an industry. read the paper on a daily basis and understand whats going on in the market.

Relax. You will have plenty of time to work this summer. If you know what sector you'll be in, take a read through some of the 10-ks or conference calls of sone of those companies if you want.

The reality is that you will not knock their socks off this summer with value-added research. Have a teachable spirit, do your best at whatever they give you, be personable, and don't be afraid to ask questions. I took the same approach as you did before my first ER internship and job, but the truth is that what you do on the job and learn on the job will outweigh the things you pick up now.

You obviously knew enough to get the summer role, so enjoy your time off. ER is a really good area to be in, so be a sponge and you should be fine.

Read the Journal, the Economist and blogs like DealBook, do well in your classes, if your firm has industry/coverage groups once you are placed try to learn more about the space.

Read How to Win Friends and Influence People.

Work out, drink, and have fun. Your summer will be grueling so take the opportunity to come in relaxed and feeling good so you don't wear down as quickly.

Clip the jacket flap on your JC Penny suit.

Read Rosenbaum

Continuously read WSO, WSJ and one of those interview guides to stay refreshed on technicals.

There's no real reason to feel pressured to be 100% prepared to take on the responsibility of a full-time analyst day one on the job. Everyone will have a learning curve once they arrive, including even the top modelers in the intern class.

To the extent you really want to be ahead, start working with Excel and PowerPoint consistently, with a focus on getting better on keyboard shortcuts and improving efficiency. That'll be the biggest value add.

Def master Powetpoint and Excel shortcuts will make your life ALOT easier if you can make yourself more efficient with those programs.

Thanks for all the advice guys. Definitely need to brush up on my excel/PowerPoint skills, and the Rosenbaum book looks like a good read

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You could email the intern sponsor for your group and ask. Apart from that, learn Excel shortcuts and VBA.

VBA is useful for IBD?

Which parts of excel? I don't wanna learn excess stuff...

Thanks again

Yeah VBA can be great for making formatting shortcuts

Think it's worth learning accounting (I know basically none atm)...?

I could pick up "Fundamentals of Corporate Finance" and/or "Introduction to Accounting for Finance"...thoughts?

In my experience you need to be familiar with business concepts, finance/accounting knowledge is a plus but not a must. I'd recommend getting Crack the Case for the interview; the interview will likely consist of a behavioral component and a "case interview".

It would be useful to start staying current with the news if you don't already: read WSJ, Dealbook, any industry reports or news sites if you are in an industry group.