Basically, investment bankers do two things. They raise money for clients, and they advise on mergers and acquisitions. Of course, that's totally simplified and they do many variations on those two themes.

So for raising money, they can help firms issue debt, issue equity (or IPO), issue converts or preferred, securitize assets or receivables, private placements and lots more more exotic things.

For mergers and acquisitions, banks help firms buy other firms, put themselves up for sale, put divisions up for sale, spin off divisions; banks may help private investors raise money and form companies to buy public companies and make them private (LBO) and lots of other stuff as well.

Health care is similar to most other industries (industrials, media, tech, etc.). Compared with other industries, merger activity (and pitching for such business) is a big part. It won't come as a surprise that big deep pocketed firms are constantly looking for companies to acquire. If the market is hot, health care IPOs are common. There is relatively little securitization (as compared with Real Estate for example).

As far as what you do, your role as an associate will be pretty similar regardless of your industry group. You'll prepare models, examine comparable companies and create pitch books, and if you're lucky you'll work on executing deals. Having some industry knowledge might be marginally helpful, and having some personal interest in the businesses you are covering could be a plus.

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Lanter 1

"Lunch is for wimps."

Thanks very much pelihu! This is very helpful in giving a lay of the land of both what IB is about and what an Associate does
I'll now take a look for other threads out there about crossing into IB, etc to really understand what that process is like.

Thanks again,
ac.

^ LOL. Priceless input as always, Rhyme!

LOL! Thanks Rhyme!