Are you looking for investment banking interview tips?

OK…Let me give you the first tip – 10 most common investment banking interview questions:

Investment banking interview questions:

1. Tell me about yourself?
2. Why do you want to work for our bank?
3. How do you value a company?
4. Why you want to do investment banking?
5. Why you didn’t receive a return offer from your internship?
6. Why you are moving from investment banking to private equity?
7. Why are you changing careers?
8. Talk about your favorite aspects of your current career.
9. How M&A deals and debt and equity financing work?
10. What makes leveraged finance most interesting to you?

Read these 10 investment banking technical interview questions?

The list is not complete…In fact, it’s just a bite.

Investment Banking Interview Guide

If you want to go for the snack, read on…

The following post I had written an year back. You can read the post: Investment banking analyst skills, role and responsibilities.

I’m pasting the post contents (Snack ) here for you…

Investment banking interview preparation

Investment banking analyst openings

Investment Banking Analyst roles are in demand. As we have seen in my last post about Equity Research Career, the career in Investment Banking and Equity Research is rewarding if you plan it well and have long term approach towards it.

Investment banking analyst jobs

If you are a fresher or have 1 year of experience in a bank, you can apply for such positions in Boutique brokerage and Investment Banking firms. You should have graduate or post graduate qualification  (MBA,CFA,CFP,CPA) in business or management. You can apply for the posts in the area of M&A, Operations, Quant, and Business Analysis.

Investment banking analyst job profile

The job profile varies as per the areas, for instance, a New Jersey job in Investment Banking Business Analyst position comes with the responsibilities of identifying project scope, defining project plan and workload,  following up and report regularly to projects sponsors, escalate issues related to this.

Investment banking analyst New York

Whereas, Investment Banking Analyst-Quant in New York will have duties like:  research, deal processing and strategic business development, researching and evaluating healthcare businesses under the supervision of senior bankers, contributing to the development of information memorandums, management presentations, pitch books and marketing materials and doing  financial Projections. While an Investment Banking Analyst -M&A working in New York with a globally diversified financial services firm will have to work on : Analytical, due diligence and transactional support on workout, restructuring, acquisition and new business opportunities, developing financial models, pitch book materials and conducting company research, analyzing data to help advise our current or prospective corporate clients on actual or prospective transactions.

The skill sets required to complete the above duties are:

· Strong quantitative / analytical skills
· Superior attention to detail
· Solid work ethic
· Excellent verbal and written communication skills
· Ability to effectively manage multiple project deadlines simultaneously.

Still hungry? Looking for some healthy meal? Read on…

To fulfill your appetite and give you a nutritious meal that will help you in long term, FinanceWalk has partnered with Breaking Into Wall Street (BIWS).

Investment Banking Interview Guide

BIWS offers The Investment Banking Interview Guide 3.0, that will boost your confidence and prepare you for investment banking interviews.

Here’s the full offer:

“Here’s How to Gain An ‘Unfair Advantage’ Over Other Candidates in Investment Banking Interviews – Without Memorizing Hundreds of Repetitive Questions and Answers”

“The secret to success in banking interviews is NOT memorizing canned responses that interviewers have heard a million times before. Interview success comes from understanding WHY bankers ask certain questions, and knowing the responses they WANT to hear”

Highlights of the New Investment Banking Interview Guide 3.0 include:

• The Quick Start Guide and Interview Action Plan reveal exactly what to expect in interviews, how to discuss your past work experience, the 4 Most Important “Fit” Question Categories to know, and how to understand the concepts behind the technical questions like a pro – even if you have less than 1 day to prepare.
• Gain Conceptual Mastery – with 103+ pages of reference notes and rules of thumb on the key “fit” and technical topics – so you don’t have to memorize robotic responses that interviewers can smell from a mile away.
• Master All The “Fit” Questions they could throw at you – with a detailed breakdown of the 15 categories of “fit” questions… preparation guidelines… and response structures. There are 127+ questions with model answers. 137 pages of detailed guidance in all!
• Crush Your Technical Questions – with 5 “Key Rules of Thumb” in each of the 6 main technical categories: Accounting, Equity Value / Enterprise Value, Valuation, DCF, Merger Models, and LBO Models… plus 111+ pages of instruction, reference diagrams and Excel screen shots. Use these to answer any interview question, calmly and confidently.

• Pitch Yourself Like a Pro with one of 15 step-by-step templates + video tutorials, covering the most common backgrounds at the undergraduate, recent graduate, and MBA levels – and beyond.
• 12 Interactive Quizzes on all the technical topics – including 326 questions and answers, with full analysis of all the questions and explanations of why answers were correct or incorrect.
• 5 Sample Interviews + 2 Sample “Deal Discussions” to help you climb inside the heads of interviewers. Includes a play-by-play critique of what each candidate did right and wrong, and how you can avoid their mistakes.
• Extension Material: “Deep Dive” Into Key Industries with 254 questions and answers across real estate and REITs, banks and insurance firms, and oil, gas & mining. You’ll pick up knowledge most bankers wouldn’t expect you to know until you’ve “been in the industry for a few years.”
• UNLIMITED Support From Experienced Bankers who’ll provide quick answers to your questions, comments, and emails and give you the kind of input that has long been only available only to the few interviewees with ‘connections.’

Why Most Interview Guides Suck… and Why This Guide Will Get You Better RESULTS Than Anything Else Out There

The Investment Banking Interview Guide 3.0 takes interview preparation way beyond merely “regurgitating canned responses” to “understanding the concepts”.

We also give you multiple ways to test yourself, to ensure that you identify and fix any weaknesses before you step into the interview room.

Other Interview Guides, by contrast, can be summed up like this:

1) Here’s a bunch of qualitative questions you might get asked… and some sample answers and explanations.

2) Oh yeah, and then here are the technical questions – with a few explanations and sample answers provided.

3) The end! Good luck with your interview!

There’s One BIG Problem with This Approach:

Interviewers at Investment Banks are NOT stupid.
Memorizing questions and answers will only take you so far… because interviewers can always put a new spin on traditional questions, and throw you for a loop in the process.

(And with more and more candidates preparing using Interview Guides and Modeling Programs, interviewers are doing this more and more.)

That’s why we created “Version 3.0” of the Interview Guide – to address the increasing trend of finance firms asking questions designed to make you think – and to catch you off-guard:

• You Need to Understand the Concepts – Not Just the Answers: Banks and other finance firms are now looking for evidence of conceptual understanding rather than your ability to memorize and repeat ‘stock’ questions and answers. That’s why we give you extensive explanations for all the concepts, before we even dive into the questions and answers.
• You Need to Practice and Test Your Understanding: Otherwise, how could you really know whether or not you understand the concepts? That’s why we give you 326+ interactive questions and answers that you can use to test your knowledge. It’s like practicing in a real interview setting, but with no suit required!
• You Need to Customize Your “Story” for Different Roles: Different roles and backgrounds require different preparation. If you’re applying to banks, you’ll say one thing… but it’s different for private equity, and for hedge funds and asset management firms. You need different ways to “tell your story,” pitch yourself, and convince interviewers that you’re the best possible candidate for the role. And you’ll learn how to do exactly that with our 15 resume / CV walkthrough templates and video tutorials.
• You Need a Different Prep Plan Depending on How Much Time You Have: You might be preparing long in advance… weeks or months before your interviews… or you might only have a few days… or a few hours. Each scenario requires very different preparation, which is why we give you a Quick Start Guide explaining exactly what to focus on depending on your background and how much time you have.

The Investment Banking Interview Guide 3.0 gets you everything above, and more – put simply, this is one of the highest-return investments you’ll ever make in ensuring that you land offers at investment banks and other finance firms.

A More Detailed Look At What’s New in Version 3.0:

Ace “Fit” Questions without Sounding “Canned”:

• Detailed explanations over 100+ pages, advice on how to prepare examples in advance and on how to structure your responses for the 15 most important categories of “fit” questions you need to know…
• Plus 127+ questions and model answers for every single one of them so that you can see exactly what to say (and perhaps more importantly, what not to say).
• Save time when preparing for interviews. You’ll learn exactly what to draw on from your resume / CV, and how to talk about it so that you don’t waste time figuring out what to say.
• You’ll also discover how to tweak all the sample answers to suit your unique background – and what you can say to set yourself apart from everyone else.

New and Improved Resume / CV Walkthrough Templates and Tutorials:

• Our resume / CV walkthrough templates now cover 10 additional, more specific backgrounds and career transitions – 15 in all!  Just pick the template that best matches your situation and build the perfect pitch:
  • Undergraduate with Non-Finance Background to Investment Banking
  • Undergraduate with Finance Background to Investment Banking
  • MBA with Non-Finance Background to Investment Banking
  • Working Professional to Investment Banking
  • Investment Banking to Private Equity
  • Big 4 Accounting Firm to Investment Banking
  • Corporate Finance to Investment Banking
  • Engineering Background to Investment Banking
  • Liberal Arts Background to Investment Banking
  • Sales & Trading to Investment Banking
  • Military Background to Investment Banking
  • Law to Investment Banking
  • Back Office to Front Office
  • Investment Banking to Hedge Funds / Asset Management
  • Lateral Move from One Investment Bank to Another Bank

New Approaches for Nailing Technical Questions:

• Brand-new “Overview” and “Key Rules of Thumb” sections concisely lay out exactly what you need to know on each of the 6 main technical topics. Master these, and you can tackle any interview question that comes your way – even if you’ve never seen or heard it before.
• 5 Excel models – for answering Accounting, Equity & Enterprise Value, Valuation and DCF, Merger Model, and LBO Model questions – and 6 video tutorials to go along with them.
• 12 Interactive Quizzes on all technical question topics, to accelerate your understanding and ability to respond easily and accurately. These quizzes are hands-down the best way to test yourself outside of hiring a Private Interview Coach.
• And 412 individual technical questions and answers in the guide itself. These have been revamped over earlier versions, and they offer brand-new content, concepts, and ways to test your knowledge.

New INDUSTRY-SPECIFIC Technical Questions:

• Stand out above all other candidates with the ONLY guide on the market that has industry-specific technical questions on commercial banks, insurance firms, natural resource firms (oil, gas, and mining), real estate development, and REITs.
• 121 questions and answers on commercial banks and insurance firms.
• 82 questions and answers on real estate.
• 51 questions and answers on natural resources.

Plus FREE Upgrades To Version 3.5… 4.0… and Beyond

If you’ve been following this site for a while, you know that we have a track record of adding more and more content over time. The original Interview Guide, released in 2008, was a skinny volume in comparison… and we then went on to update that one multiple times.

This edition is massive (yet it still has a “Quick Start Guide” in case your interview is fast approaching.)

And there’s even more on the way – you’ll be first in line to get FREE upgrades to all of the below when you sign up for the Guide:

• Interactive Quizzes for Qualitative Questions: Develop your skills to give better responses and detect what makes an answer to a “fit” question good or bad.
• New Case Studies: We’ll be adding extensive coverage of the case studies that you receive at assessment centers (standard in Europe and other regions outside the US), and even in some entry-level investment banking interviews. From advising companies on M&A to building quick models and valuations, this will be your #1 source for case study practice.
• More Sample Interviews and Deal Discussions: These are great if you have a more “unorthodox” background and you need to see how interview questions will change depending on your experience.
• Interactive Quizzes on the Industry-Specific Questions: As always, these quizzes are simply the best way to test your knowledge and close any gaps.
• Additional Industry-Specific Questions: We will be adding additional material to address subtle differences in industries such as technology, healthcare, consumer / retail, and industrials, and how to talk about industry trends and deals.

“Can I See A Sample Of What’s In The Guide?”

Sure! Just click on this link to check out a sample of what’s inside.

Get Instant Access Today…Plus Unlimited Support In the Future

When you sign up for the Investment Banking Interview Guide 3.0, you get Instant Access – all materials delivered online, with no shipping charges and no waiting for physical products to arrive.

Even if your interview is tomorrow and you just found out about it an hour ago, you will have the best chance possible to prepare. We’ve even included a “Quick Start” Guide, to help you hit the ground running in the shortest time possible.

But that’s not all.

In addition to Instant Access, you also get FREE lifetime updates, new additions to the guide, and here is the big one:

Expert support 365 days per year (yes, even on New Year’s Day).

Inside the Secure Members’ Area, you will find a “Question/Comment” area attached to every lesson, where you can ask questions, request additional clarification, and get help on any specific course element.

These comments are monitored and responded to by our expert Support Team – every one of whom has personal experience working on deals at banks, private equity firms, and other finance firms.

So in other words, you’ll be getting expert advice from people who have “made it” themselves, not some high school temp clutching a “Help Desk” manual.

You could learn a whole lot just by reading other members’ questions and answers on the site.

Our 1-on-1 phone-based coaching rate is $200+ per hour. But when you invest in the Investment Banking Interview Guide 3.0, personal support is included for FREE.

With everything you get here, you might expect the Interview Guide 3.0 to be priced at a huge premium.

After all, what’s a foot-in-the door at an Investment Bank or finance firm worth to you?

Even entry level Analysts earn at least $100,000 USD right out of university.

At the MBA level, that climbs to $200,000 USD. And as you progress, your total compensation only gets higher and higher.

So we could charge several hundred dollars for this Guide because of the huge payoff potential and the fact it’s flat out impossible to find out this information and knowledge any other way (unless you have several months to do your own full-time research).

But I also want to make this information as accessible as possible to the finance community. Many customers who invest in this product are so impressed, they go on to do more business with us down the track. So it benefits both of us if I lower the barrier to entry as much as possible.

That’s why I’ve decided to offer the complete Investment Banking Interview Guide, including everything I’ve mentioned above, for a one-time payment of just $97.

At $97, price shouldn’t be an object – the right role at the right firm could make you literally thousands of times your investment over the course of your career.

And perhaps even more importantly – you only get one chance to make a good first impression. This Guide gives you everything you need to maximize your chances in each and every interview, so you never let golden opportunities slip through your fingers.

Plus, you get a no-hassle money-back guarantee

Just like every one of the BIWS products and courses, this comes with our unconditional 60-day money back guarantee.

That’s right – take a full 60 days to evaluate everything inside the Program, and if you’re not 100% satisfied, simply contact BIWS via the “Contact” link displayed on every page of the site and ask for your money back. You’ll receive a prompt and courteous refund.

There are no strings attached, no special terms or conditions, and no fine print.

Wait, here’s a bonus for FinanceWalk readers

FinanceWalk has partnered with BIWS; and you, as a FinanceWalk reader, will get a Free $97 PowerPoint Pro bonus.

To get the bonus, sign up from this link.

EVEN BETTER OFFER

What’s even better than the Interview Guide? The Networking Toolkit + Interview Guide Bundle!

With The Networking Toolkit + Interview Guide Bundle, you get these two components:

• Investment Banking Networking Toolkit
• Investment Banking Interview Guide

(Including all bonuses, expert support, immediate access and a 60-day Money-Back Guarantee on everything…) all for just $144 (savings of $50) Plus $97-bonus for FinanceWalk readers. These two products work great together, and I promise you – they will never be offered at a lower price than this.

Click Here To Gain Immediate Access To The Interview Guide + Networking Toolkit Bundle

Image Source: kozzi[dot]com

Calculation of Beta of a Stock Using Excel FinanceWalk

How to calculate Beta of a stock using Excel

If you go for an interview for the post of equity research analyst, you’ll face the question: “How to calculate Beta value?”

As an equity research analyst, you need to know how to calculate Beta of a stock. To find Beta of stocks, yo need two steps:

1. Data collection:

Here you’ll collect the closing price of the stock and the closing price of the benchmark index.

2. Calculate stock Beta in Excel:

In this step, you’ll understand how to calculate market Beta.

I’ve explained the first part (data collection) of the process How to Calculate Beta of a Stock Using Excel in the video below.

Financial Modeling Courses in Delhi at FinanceWalk
Image: freedigitalphotos.net

Our premier and most comprehensive 6 weeks fulltime Financial Modeling and Investment Banking program is born out of inherent need in the market. Students often exit the academic world without practical skills, leaving a void during an era when finance needs some of the world’s brightest minds. Our mission is to help the delegates fill that gap. The 6 weeks fulltime investment banking training program does precisely that.

The training bridges the gap between what you know (academic theory) and what corporates are looking for (Practical aspects) with intensive on-the-job training. The program equips you with the skills you need in interviews and on the job.

We are confident to get you an entry in to the capital markets. So we charge our fees as investment bankers do for the deals – Engagement Fee and Performance Linked fee.

• 40% fee at the time of enrollment for the workshop
• A substantial, 60% on placement

We have multifarious successful stories of transformation, where once capital markets aspirants are now capital market participants – working as investment bankers, strategic consultants and finance advisers.

The 6 weeks Financial Modeling and Investment Banking Training is designed to provide delegates with a comprehensive understanding of financial modeling skills, investment banking techniques, equity research, and capital markets. Designed by Investment bankers and industry experts, this program plugs the gap between theoretical concepts learned during academic degrees/diplomas and on-the-job application of those concepts.

Financial modeling course structure*

Week 1: MS- Excel, Financial Statements, Ratios, Relative Valuation

Week 2: Financial Modeling, DCF Valuation

Week 3: Merger Model, Valuation of a company going public (IPO)

Week 4: Capital Budgeting (project feasibility, decision modeling), DDM Modeling

Week 5: Company Profiles, Pitch Books, Valuation prospects – IPOs, M&As, PE

Week 6: IPO pitch book, project feasibility case studies, revision

* Assessments – written tests and mock interviews are integral part of training and happen every week.

Financial modeling training detailed contents

1. MS Office

A financial analyst won’t be spending all his/her time on Excel building financial models, but will be crunching a fair amount of data and creating charts, tables & presentations. Human Assets of an entity (Finance, Marketing, HR etc.) live and breath Excel, word and PowerPoint and and we will teach you all the best practices of the most important tools.

Excel foundations

This course focuses on learning the fundamental building blocks of Excel so you can begin to take advantage and leverage all of Excel’s true capabilities. In order to efficiently build models and crunch large data dumps in Excel, one must master the basics before the advanced content. Learn relevant financial formulas, proper navigation, formatting of files and worksheets, creating calculations in cells, and linking between worksheets/tabs.

• Mathematical functions: SUM, MAX, AVERAGE, MEDIAN, MIN
• Financial functions: PV, FV, RATE, NPV, IRR
• Logic Functions: IF, nested IF, CHOOSE, AND, OR
• Formatting: fills, copy formulas, paste special
• What If Analysis: Goal Seek, Scenario Manager, Data Table
• Sorting Data (By Values, By Cell Color, By Font Color, By Cell Icons)
• Summarizing Data with Pivot Tables by changing value field settings, using pivot option and pivot charts
• Protecting and Sharing as protecting cells, worksheets, workbook

Advanced Excel

The focus here is how to effectively and efficiently utilize Microsoft Excel for data analysis. If you don’t want to spend hours figuring out how to navigate and work on monumental data and come out with apt analysis, you need to know to learn some functions which will make your work simple, uncomplicated and simply Wow!!!

• Offset Functions, Match Function
• Multiple and Indirect Functions (VLOOKUP+If, VLOOKUP+Match, Index+Match, Multiple Ifs, Data Cleaning, Arrays)
• 1-2-3 way sensitivity analysis
• Iterative  calculations
• Statistical functions as Correlation, Regression

2. Finance foundations

Learn the basic finance concepts that are the backbone of any financial analysis. An understanding of these basic core tools is absolutely critical to mastering any financial or valuation analysis. Concentration is placed on the integration of the financial statements. We answer all the rarely answered “WHY” questions—”why do we do this, why do we do that”—instead of answering: “well, just because” or “that’s the way it’s always been done”, we actually clearly and easily explain the logic of why and how not just the what.

• Income Statement, Balance Sheet, Cash Flow Statement defined and importance explained
• Relationship between the Income Statement and Cash Flow Statement
• Understand how financial statements are inter-related
• Overview and explanation of major financial ratios, including liquidity, asset management, debt management, profitability, and market value ratios
• DuPont RoE, Breakup of RoIC (RoIC tree)
• Break Even Point, Margin of Safety

3. Capital budgeting

Financial feasibility of projects are predominantly capital budgeting and financial decisions faced by firms. Most of the big projects are started/not started based on prudence with numbers and economic viability coming from them. We train you in this and post the training, delegates :

• Recognize the advantages of using Net Present Value (NPV) versus Internal Rate of Return (IRR) to calculate the value of a project
• Learn to calculate, XIRR, MIRR, make dynamic model with multiple options using scenario manager
• Determine the value of projects that have different life spans using different approaches
• Recognize the formulas for the after-tax Weighted Average Cost of Capital (WACC) and Capital Asset Pricing Model (CAPM) and how they are used to determine the cost of capital
• Identify the formulas for calculating cash flows resulting from investments and how they are used to determine the profitability of a project

4. Trading comparables

Trading comps analysis is the quickest, most widely used valuation methodology, and fundamental part of the core valuation skill set of investment bankers and finance professionals. Build a detailed, thorough trading comps analysis (analysis of selected publicly traded companies) and learn how to properly construct a relative valuation analysis the correct way as well as how to normalize financials for extraordinary items, non-recurring and restructuring charges.

• Learn the steps required to construct a trading comps analysis (Enterprise Value, Latest Twelve Months, Cleaning Reported Financials, Calculate & Benchmark Multiple)
• Impact of Convertible Securities – Options, Warrants, RSUs, Convertible Bonds, Convertible Pref. Share
• Why Non Controlling Interest is added in calculation of EV? How do we find market value of Non Controlling Interest?
• Proper Treatment of Operating and Capital Leases
• Different Types of Multiples – EV multiples vs. Equity Multiples

A proper trading comps analysis helps you understand:

• How does the target company fit into the comparable universe?
• How to allocate enterprise value between holding and subsidiary companies?
• What type of multiple is most appropriate to value the target?
• Should we value the target company at a premium or a discount to the comparable universe?
• Why would one company command a higher or lower premium than its direct competitor?
• What multiple range should be applied to the target?
• WACC Impact on Multiples

5. Transaction / deal comparables

Transaction / deal comps analysis is a variant of comparable valuation. Value of the firm is derived by assessing the value of comparable deals recently happened. Build a deal comps analysis (analysis of selected acquisitions), similar to trading comps analysis, but from an acquisition context using transaction data.

• Learn the steps required to construct a deal comps analysis (Enterprise Value, Latest Twelve Months, Cleaning Reported Financials, Calculate & Benchmark Multiple)
• Calculate transaction value (purchase price), premiums and multiples in past deals
• Difference between transaction value and enterprise value
• Difference between Trading Multiples and Deal Multiples
• When to apply Deal Multiples or Trading Multiples for Valuation

6. Merger modeling

Merger Modeling is critical in deciding about the impact of a Mergers and Acquisitions (M&A) transaction on the acquirer companies’ future performance. After modeling a company’s profits / cash flow and valuing the entity, one must decide what to do with the company in the grand scheme of its strategic alternatives, including a merger or acquisition. It provides the fundamental knowledge required to understand, analyze and structure mergers & acquisitions.

• Merger consequence analysis including accretion / dilution and financial implications of a deal
• Discussion of key components with financial impact on transactions
• Detailed explanation and analysis of line-by-line construction of accretion / dilution model
• Factoring the synergy impact on future earnings performance of acquirer
• Analysis of break even PE for both 100% stock and 100% cash considerations
• Contribution analysis and its relevant in the analytical process

7. Advanced financial & valuation modeling

Take your basic and core concepts to the next level to cover the fundamental financial modeling concepts that one must be master in order to perform the financial analysis required. We plow deep into building robust and integrated models and ripping apart footnotes and making subjective inputs and properly analyzing the results of our models. Construct Discounted Cash Flow (DCF) valuation model, detailed revenue segment build-up, project more precise depreciation schedule, construct a reference range and football field summary valuation.

• Projection of revenue for the company based upon key revenue drivers
• Projection of complete income statement of the company
• Projection of cash flow statement by building each component of cash flow statement
• Balance the model using the debt schedule and debt sweep logic (important in terms of balancing the model)
• How does the revolver facility actually balance the model?
• How are the financial statements integrated using the Interest schedule?
• What are circular references, why should they be avoided and how to get around circular references
• Estimate unlevered free cash flow (free cash flow to firm)
• Different ways to calculate the terminal value  and their implications on value
• EBITDA multiple and perpetuity growth approaches and their inherent limitations
• Weighted average cost of capital (WACC) analysis that supports the DCF- Calculation of Risk Free Rate (using risk free rate of other country and adjusting it)

  - Calculation of Beta and adjusting it for liquidity, size premium etc

  - Impact of Leverage on Beta of the company and how to adjust that impact by un-levering and re-levering the Beta

  - Calculation of ERP (using predictive model, spread rate, country risk etc)

  - Calculation of WACC in absence of required data or reliable data

• Building different scenarios in the model to see impact on final DCF valuation – base case, best case and doom case scenarios
• Build and analyze reference range and football field to summarize overall valuation metrics

8. Company Profiles

Company profiles are the most basic overview and descriptions of a company being analyzed. Profiles supply the most basic and fundamental, yet probably the most important aspects of a company. Gain an introduction and explanation of the major components of a profile for a publicly traded and private company.

• Summary business description, segmental breakup
• Stock price charts, ownership analysis,
• Financial summary, Competitive Benchmarking
• SWOT Analysis
• Historical evolution, management and Board of Directors (BoD) biographies

9. Pitch books

An analyst spends a good amount of time in investment banks in preparation of pitch books (buy side, sell side, IPO etc.). A pitch book consists of a careful arrangement and analysis of the investment considerations of a potential or current client. Structure of a pitch book is very important which keeps on changing per transaction requirements. Prepare an entire pitch book keeping in mind end objective of the book. Some of the key learnings you would get from this process are:

• What’s the use of various models you prepared in previous classes
• What’s the flow of transactions
• What’s role of investment banker in execution of transactions

Some of important sections of pitch books are (though it varies case to case)

• Process of whole transaction
• Analysis of company from perspective of buy side, sell side, IPO etc.
• Industry analysis (Industry landscape, key industry trends, operation benchmarking, valuation benchmarking etc.)
• Valuation aspects

Our Full Time Financial Modeling  Courses (6 Weeks) start on 3rd June in New Delhi and 10 Day Weekend Workshop starts on 8th June in New Delhi.

Only few seats remain. Interested candidates can contact me.

So you want to be a financial analyst? : Educational opportunities and rankings for the B-School bound

The financial analyst position is a highly competitive and coveted job in big banks, investment firms, insurance companies, and investment banks alike. The rigorous nature of the job attracts go-getting undergraduates fresh out of college each year. Most entry level financial analysts have a strong technical background in economics, math, computer science, or physics. However, a B.A/B.S will not suffice if you plan on breaking into the financial analyst position from an unrelated field or if you are looking to climb the ladder to senior analyst status.

Early acceptance programs

The traditional route to business school is usually precluded by a minimum of two years working experience, after which an applicant will typically apply for admissions. This traditional route to graduate school of course has its exceptions. A Wall Street Journal piece found that although most students still take more than double the minimum years recommended to work before applying to business school, the largest growing demographic of applicants taking the Graduate Management Admissions Test (GMAT) is the under-24 group.

Many business schools have initiated new programs and initiatives to attract the newly degree-minted set to their schools right out of college. While these programs offer a path of guaranteed admissions to business school, accepted students are still required to gain full time work experience before sitting down next to the average 29 year old B-school student. Some notable programs for college graduates looking to kickstart their careers as financial analysts include: the Harvard Business School 2+2 program, the Yale School of Management Silver Scholars program, IESE’s the Young Talent program, and Stanford Graduate School of Business’s deferred enrollment policy.

Best international schools

The United States proudly claims the majority of the top twenty slots in a ranking of the top global MBA programs in the world by the Financial Times. While a number of US business school programs offers combination international study-abroad type programs, many students are opting to take their entire educational experience overseas instead. In fact, the remaining ten spots in the Financial Times list are programs from highly ranked institutions abroad that offer a gateway to a variety of different markets and opportunities that homegrown MBAs may not garner access to.

Finance graduate programs ranking

As a financial analyst looking to branch out or lay down roots on a different continent, your best bet is to attend a school with both national and domestic repute. In Europe, the London Business School and INSEAD France are both great institutions with diverse student bodies and excellent faculty. India and China are hotspots for emerging markets and their B-schools aren’t shabby either. Hong Kong UST Business School is number ten on the Financial Times list with Indian Institute of Management, Ahmedabad right behind it at a close number eleven.

Best US business schools

Wharton, Stanford, Harvard. This B-school trinity consistently tops the list of most every ranking released on businesses schools in the nation and the world at large. While there’s good reason to have the mentality of Wharton or bust; every business school has niches where it excels, and niches where graduates are average. It’s important to take a moment to look past the rankings and hype and decide what your goals are after business school. For a specialization in Finance, consider the University of Chicago (Booth), NYU (Stern), and MIT (Sloan), all of which excel in the US News rankings for 2014.

While an MBA is not the only flavor of graduate degree that financial analysts hold, it is the most popular. Consider all of your options and put your best foot forward during the application cycle to land the business school and future career of your dreams.

Image:Kozzi.com

This article is written by our guest author, Angie Picardo.

Angie is a writer for NerdWallet, a personal finance website dedicated to helping you have a successful career by setting financial goals.

Oil and Gas Modeling/ Courtesy:Vichaya/freedigitalphotos.net

How many of you want to make a career in Oil and Gas financial analysis?

Those who are interested to make a career in Oil and Gas financial analysis, read on…

I did a research on requirements of financial analysis in Oil and Gas sector.

Glassdoor, Monster and SimplyHired websites gave me the requirements as below:

Requirements

• Bachelor’s degree in Accounting. (CPA preferred).
• 3+ years experience within the Energy industry, preferably oil and gas related.
• Excellent computer skills including advanced Excel skills.
• Excellent communication skills and the ability to handle multiple tasks.
• Deep intellectual curiosity about oil, gas, and mining processes and emerging technologies.
• Strong analytical skill, both qualitative and quantitative.
• Excellent office software skills (expertise in Excel financial modeling is highly desired)
• Strong computer skills, including a high level of proficiency with MS Excel and MS PowerPoint
• An MBA degree and experience with financial analysis, budgeting and forecasting, and financial planning are a plus

How will you prepare for oil and gas modeling

Oil & gas modeling is a complex area. However, if you start with basics, you’ll gain confidence.

Breaking Into Wall Street (BIWS) has created an online training program on Oil and Gas Certification.

Real estate REIT financial modeling training course details

“How to Learn Oil & Gas Valuation and Financial Modeling and Dominate Your Investment Banking Interviews – and Race to the Top of the Bonus Ladder After You Land Your Offer and Start Working”

“The Breaking Into Wall Street Oil & Gas Modeling Course is hands-down the fastest way to master real-world Oil & Gas Financial Modeling and Valuation, with Step-by-Step Video Tutorials, a Case Study Based on a $41 Billion M&A Deal, Unlimited Lifetime Support, and an Unconditional Money-Back Guarantee. Read on to find out more…

Go to the Sign Up page.

What will you learn in this oil and gas training online program

• Master the nuances of oil and gas accounting, valuation, and financial modeling with detailed, step-by-step video training. These are skills that are NOT taught in undergraduate or MBA programs… but which any oil & gas group will expect you to know in interviews and on the job.
• Quickly grasp “real life” concepts and skills through a detailed case study of Exxon Mobil’s $41 billion acquisition of XTO Energy – one of the largest and most important energy M&A deals ever. This is not “academic financial theory,” but exactly what you do in real life at a bank.
• Dominate your interviews. For your convenience, we provide 6 quick reference guide PDFs and 7 Overview lessons on the topics most likely to come up in interviews. Skip to exactly what you need and review all the concepts in short order – even if your interview is tomorrow and you just found out about it 5 minutes ago.
• Learn how to use oil and gas equity research and SEC filings. Everything in the program is integrated with real SEC filings and equity research from banks like JP Morgan, Credit Suisse, and Deutsche Bank. And you’ll learn exactly how to pull relevant information, adjust for non-recurring charges, and align your numbers with Wall Street consensus estimates.
• Oil & Gas Accounting, 3-Statement Modeling, Valuation, Merger Models, and LBO Models. These are the fundamental skills you’ll need if you want to work in an oil & gas group in Investment Banking, Private Equity, or at a Hedge Fund. And you’ll leap ahead of the curve by mastering them before you start working – plus, coverage of additional industry-specific topics such as production and reserves, the Net Asset Value (NAV) Model, and estimating the impact of hedging.
• Pick everything up fast in 3 simple steps: 1) Understand the concept behind the model. 2) Watch a pro build the model. 3) Practice building the model yourself.
• Test Your Knowledge with Practice Exercises. You’ll get “Before” and “After” Excel files for each lesson – follow along with the lesson, and then check your answers afterward.
• Get Instant Access: Since everything is delivered online, you get Instant Access to everything as soon as you sign up. No delays, scheduling conflicts, or packages in the mail to worry about.
• Track Your Progress and Take Notes. Thanks to our custom-designed online learning platform, you can check off each module as you go, and take notes on all the lessons for your future reference.
• Unlimited, 365-Day Per Year Support. We have a team of experienced bankers standing by 365 days per year to respond to your questions, comments and emails, for as long as you need.
• Unconditional Money-Back Guarantee. BIWS Oil & Gas Modeling is the only financial modeling training program of its kind to come with an unconditional 60-day money back guarantee.

What You Get… And What The BIWS Oil & Gas Modeling Course Will Do For You…

This is advanced training for both new and experienced professionals.

The Oil & Gas Modeling course is perfect for you if:

• You already know the fundamentals of accounting, valuation, and financial modeling, and now you want to learn how the energy industry works in-depth.
• You’re interviewing with oil & gas groups – at banks, PE firms, hedge funds, or any other finance firm.
• You’re about to start working in an oil & gas group, or you’ve just transferred into one and need to get up to speed quickly.
• You’re an experienced professional and you’ve worked in the energy industry before – and now you’re transitioning into investment banking, private equity, or related roles.
• Valuation module covers public comps and precedent transactions for energy companies…the key metrics and multiples to use… how a DCF is different… and how to create a full Net Asset Value (NAV) model based on data in SEC filings and equity research.
• Merger Model lessons teach you how to use the actual Exxon Mobil – XTO Merger Agreement to make assumptions… how to combine the 3 statements for oil & gas companies… and how acquisition effects, synergies, contribution analyses, and accretion / dilution differ for energy companies.
• LBO Modeling module covers the key differences when modeling oil & gas companies… how to modify XTO’s debt schedules to support refinancing and 7 new debt tranches… and how to analyze returns based on commodity prices.
• The entire course is integrated with real SEC filings and equity research from banks like JP Morgan, Credit Suisse, and Deutsche Bank – so you’ll learn how to use all of those as you would in real life at a bank.

The information you’ll find is so detailed and so thorough that our regular customers come from top-ranked universities, investment banks, and business schools.

Once you’ve completed the training, here’s what you can immediately add to your resume / CV:

• Oil & Gas Modeling (Breaking Into Wall Street) Online Financial Modeling Training Program
• Completed oil & gas modeling training, based on case study of Exxon Mobil‘s $41 billion acquisition of XTO Energy; built oil & gas operating model, valuation, merger model, and LBO model
• Built operating models for both Exxon Mobil and XTO Energy, based on multiple scenarios for commodity prices, hedging, and fixed and variable expenses; also created debt schedule to handle possible refinancing
• Valued XTO Energy using Net Asset Value (NAV) Model, DCF, and public comps and precedent transactions using multiples such as EV / EBITDAX, EV / Proved Reserves, and EV / Production
• Built merger model for deal, including assumptions based on exchange ratio used in deal and potential synergies; calculated both general-purpose and oil & gas-specific accretion / dilution metrics
• Created leveraged buyout (LBO) model for XTO Energy and used results to understand why buyouts of natural resource companies are rare

You can print out the models from this course and during the interview, you can describe exactly what you learned in the training – you know how important it is to set yourself apart, right?

and,

• Free access to PowerPoint Pro tutorials ($97 value) for FinanceWalk readers.

Plus Unlimited Support From Expert Trainers, 365 Days A Year

When you enroll in BIWS Oil & Gas Modeling, you’ll receive Instant Access to the entire course.

Everything is delivered online, so there’s no waiting for materials to arrive by mail, and no expensive in-person training to worry about fitting into your schedule.

You can even download any of the videos or other resources to your preferred device (smartphone, tablet, or laptop / desktop) so you can review the materials whenever and wherever you like.

But that’s not the best part…

The best part is unlimited, 365-day-per-year support, whenever you need it.

So if there’s anything at all you don’t understand or anything you need to clarify, just go to the “Question/Comment” area below each and every lesson, and ask your question.

These comments are monitored and responded to by our expert support team – every one of whom has personal experience working on deals at investment banks, private equity firms, and other finance firms.

So you’ll actually get responses from people with deep experience in the field.

This personal, unlimited, when-you-need-it support is one of the things that sets the BIWS courses apart and gets you to your goals faster.

You can often learn just as much from reading other customers’ questions, and our responses, as you will from the lessons themselves!

Our personal phone-based coaching rate is currently $200 per hour. But when you access this course, personal support is included for FREE, for as long as you need it.

Watch oil and gas financial modeling sample video.

What’s your investment in the oil & gas modeling course?

To put this in context, let’s consider your Return on Investment in this Program…

The pay for entry-level investment banking jobs varies from year to year, but it’s safe to say that even entry-level Analysts would make at least $100,000+ USD right out of university.

At the MBA level, that climbs to $200,000 USD. And as you progress, your salary only gets higher and higher.

By investing in this highly-specialized program, you’re doing several things, all at the same time:

• Gaining extremely specialized knowledge in a field in which there is always high demand for people who know what they’re doing.
• Learning practical real-world skills you can apply right now.
• Differentiating yourself from other IB professionals and students at top schools – even those with the best academic pedigrees and the highest GPAs.
• Proving beyond a doubt to current or potential employers that you’re someone who is prepared to go “above and beyond” to be the best and get results… which is exactly the type of person banks love to hire, reward and promote.

So the value you stand to receive is substantial.

And your investment? Just $247 for the entire program.

With this very modest investment, you’re setting yourself up for a job that pays a minimum of $100,000 – that’s a 400x return on investment. (Good luck getting that in the stock market!)

Or another way to look at it is that with this course, you’re acquiring highly-specialized skills for which there is a ton of demand, but very limited supply… and that can only be a very good thing for you.

Other training firms charge much more for less content and value – and in some cases, for programs that aren’t even designed specifically for online learning.

Plus, you get a no-hassle money-back guarantee

Just like every one of the BIWS products and courses, this comes with our unconditional 60-day money back guarantee.

That’s right – take a full 60 days to evaluate everything inside the Program, and if you’re not 100% satisfied, simply contact BIWS via the “Contact” link displayed on every page of the site and ask for your money back. You’ll receive a prompt and courteous refund.

There are no strings attached, no special terms or conditions, and no fine print.

Here’s what happens within minutes of you signing up

Once you sign up, you’ll immediately have access to the 54 instructional videos and 6 PDF Quick Start Guides.

And you’ll have access to BIWS’ expert support team to ask whatever questions you have.

With that comes lifetime access, free upgrades, new content as we add it, and expert support.

Wait, here’s a bonus for FinanceWalk readers

FinanceWalk has partnered with BIWS; and you, as a FinanceWalk reader, will get a Free $97 PowerPoint Pro bonus.

To get the bonus, sign up from this link.

Pssst! Here’s An “Even Better” Offer

What’s an even better value than this industry-specific financial modeling course? The Industry-Specific Financial Modeling Course Bundle.

With the bundle, you get the following three Courses at a deep discount to the regular prices:

• Bank & Financial Institution Modeling Course
• Oil & Gas Modeling Course
• Real Estate & REIT Modeling Course

(Including all bonuses, expert support, immediate access, and a 60-Day Money-Back Guarantee on everything…) all for just $497 (savings of $244) Plus $97 bonus for FinanceWalk readers

Knowledge and skill in these three specialized disciplines will truly set you apart from the pack, and I promise you: they will never be offered at a lower price than this.

Click Here To Sign Up and Get $97 Bonus Now For The Industry-Specific Financial Modeling Course Bundle