Types of Models/Analysis used by IB Analyst
DCF
LBO
M&A
SWOT
Comparable Companies
precedent transactions
Am I missing anything else?
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What is HOT?
And can anyone tell me more about an offerings memorandum.
What modeling skills (e.g. types of models) would be most helpful for someone pursuing investment banking internships? (Originally Posted: 07/22/2015)
The main thing is to know how they all work, not necessarily build one from the ground up. The typical how the 3 statements work together, how a DCF works, stuff like that. This is at least just at the interview stage.
I'd say it depends on what level you are. If you're a sophomore I'd say they won't really expect you to know all that much other than basic accounting and technicals. As a junior I'd say know pretty much what a dcf is, and know how to build a comps and precedent and the DCF from scratch.
I'd also say it depends on which group you will be / are applying to. If you are doing M&A, you have to know M&A modeling; if you're in restructuring, knowing about LBOs would probably give you a head start (and the basic 3 that I mentioned above, of course).
Just my $0.02. Someone that is actually in the industry may be able to give you a better insight.
Did some LevFin work. There you'll do cap. structure optimization and liquidity forecasting models (the latter involving operating models with moderately complex debt schedules thrown in).
What kind of models do analysts need to know? (Originally Posted: 01/14/2010)
bump
Brazilian and Eastern European mostly, but you should also be able to name all of the Victoria's Secret models. Anything beyond that, and you're just trying to show off.
Dw, Tiger knows them all (poster above you')
victoria secret stuff is so middle market
Ze Italians definitely and some gorgeous ones like Joe Edney, Ryan Taylo and Jeremy Dufour.
Haha.
You don't need to know any other modeling... atleast not what you're talking about. Most of the modeling you'll do is LBO models and building operating models which you can't really learn unless you're submersed within a company.
The only people that have ever asked me for a SWOT analysis are the weakest senior bankers. I doubt you'll be doing those very often.
Regarding the comment above mine, I've also done capital structure optimization modeling for investment grade companies.
There are also ad hoc models/analyses that don't really fall into a defined category.
Yeah. I took it upon myself to throw together a SWOT and I got ripped apart. It's "monkey work." As for the ad hoc models, depending on your industry focus you could run into some that are 100x more complex than a DCF. I ran into of huge portfolio of leveraged leases with twisty debt & ownership profiles that was humbling to say the least.
...and liquidity forecasting models are part of the standard output of any decent LBO model.
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