{"id":7097,"date":"2011-05-05T08:05:39","date_gmt":"2011-05-05T16:05:39","guid":{"rendered":"https:\/\/gmatclub.com\/blog\/?p=7097"},"modified":"2013-03-27T15:09:46","modified_gmt":"2013-03-27T22:09:46","slug":"after-the-mba-investment-banking","status":"publish","type":"post","link":"https:\/\/gmatclub.com\/blog\/after-the-mba-investment-banking\/","title":{"rendered":"After the MBA: Investment Banking"},"content":{"rendered":"

<\/em><\/h4>\n

This is another post in our After the MBA series, in which we chronicle a variety of post-MBA career opportunities to give you a sense of which might be the best fit for you. Whether you're looking to make a career change or want to stay in your present field, this information will help guide you in your b-school decision-making process, as well as direct your studies once in school.<\/em><\/p>\n

Job\/Industry: <\/strong><\/h4>\n

Investment Banking<\/p>\n

What It Is:
\n<\/strong><\/h4>\n

Investment banking is a demanding, intellectually stimulating career that requires a great deal of dedication, financial savvy, and time. Investment bankers serve a variety of functions, depending on their specific position. They advise clients on financial organization; underwrite, sell, and trade stocks and bonds; and manage assets, among other responsibilities.<\/p>\n

If you are working in corporate finance<\/strong>, you will serve as a financial consultant for corporations. Often banks will assign bankers to work in a certain industry (health care, communications, finance, etc.); you\u2019ll be responsible for helping firms execute financial strategies, analyzing their financial needs, determining valuations for new offerings, and underwriting equity and debt offerings, among other responsibilities. Mergers and acquisitions<\/strong> is related to corporate finance and sometimes serves as its own department; if you\u2019re an M&A banker, you\u2019ll give advice to companies that are merging with or being acquired by other companies. M&A requires a detail-oriented, strategic mind to ensure you\u2019re able to work out all the specifics of the merger or acquisition deal.<\/p>\n

If you are working in sales and trading<\/strong>, you will buy and sell securities and commodities; traders must keep track of the markets constantly while communicating with buyers and sellers.<\/p>\n

Research analysts<\/strong> become experts in their given industry. They use their expertise and do continued research to predict the movement of stocks, usually either in fixed-income or equity. Traders rely on their educated advice. Research analysts do many different types of research on a company\u2019s financials as well as economics trends in general.<\/p>\n

Salary Range:<\/strong><\/h4>\n

Salaries for investment bankers vary depending on a variety of factors. According to one source<\/a>, the salary range for associates with MBAs is $80,000 to $150,000, including bonuses. Stanford\u2019s Graduate School of Business, for example, reported a median salary of $100,000 with a median bonus of $40,000 for investment bankers from the class of 2010. Dartmouth\u2019s Tuck School of Business reported a median base salary, not including bonuses, of $95,000. Bonuses are determined at the end of the year and are based on a variety of factors: namely, the performance of the firm, the market, and the individual. According to some estimates, bonuses are typically anywhere from 10-50% of the yearly salary for first-year bankers, and increase markedly with seniority (often, a significant amount of the bonus will be in the form of equity). At regional or smaller banks, salaries will likely fall below those at major banks in major markets.<\/p>\n

How to Get an Investment Banking Job:<\/strong><\/h4>\n

If you are attending a top-50 MBA program, it is likely that representatives from banks will recruit at your school. If you are interested in a career in investment banking, be sure to attend these events. You should make a concentrated effort to do a summer internship with a bank after the first year of your MBA program; this will help you get your foot in the door and make contacts in the industry. Be sure to strike a balance in your interactions with recruiters: you want to be appear interested, but you do not want to monopolize the representative\u2019s time and make a bad impression.<\/p>\n

If investment banks do not recruit at your MBA program, use your networking skills to find contacts within the industry.<\/p>\n

If you are fortunate enough to get an interview for an i-banking job, be sure to prepare answers to frequently asked interview questions, including:<\/p>\n

    \n
  • Why investment banking\/why do you want to work here?<\/li>\n
  • Why should we hire you?<\/li>\n
  • What are your outside interests?<\/li>\n
  • Are you a risk-taker? What are some risks you\u2019ve taken?<\/li>\n
  • What are your greatest strengths and weaknesses? How are these reflected in your resume?<\/li>\n
  • What questions do you have? (Make sure you have challenging, detailed questions prepared for this one.)<\/li>\n<\/ul>\n

    Furthermore, you should have a clear understanding of the industry and be up to date on industry trends, recent mergers, etc. in order to ensure you are competitive for an i-banking job.<\/p>\n

    Is I-Banking Right For You?<\/h4>\n

    Investment banking is not a career to jump into blindly. It be very rewarding, intellectually and financially; however, it also requires a great deal of dedication and time. Try to evaluate whether your personality is a good fit for the banking lifestyle. You should be a strong communicator, enjoy taking on leadership roles, be an excellent problem solver, and not mind (and ideally enjoy) working under pressure.<\/p>\n","protected":false},"excerpt":{"rendered":"

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