Investment banking modeling

In IB is there like a prebuilt set up when building dcf,comparable, or precedent transaction models? Like is it mostly entering in number to a format that is already constructed by your firm?Or does a analyst build it from absolute scratch like a blank excel sheet?

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Comments (6)

  • Prospect in IB - Ind
Aug 3, 2020 - 9:18pm

Besides not being time efficient, why not? Wouldn't the model be more accurate if it was done from scratch? Or do things move too fast for a junior banker to make one from scratch?

Aug 3, 2020 - 9:22pm

Not being time efficient is the big one but there's also sufficient room for error when building a model from scratch (formulas, references, etc.). Would take a long time to build and a long time to "proofread". When using an existing model you can rest assured that the model will be correct as long as you don't mess with the formulas

  • Analyst 2 in IB-M&A
Aug 3, 2020 - 9:33pm

Once you work in banking you'll understand why building a new model/template every time is a very silly idea

Aug 3, 2020 - 9:55pm
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