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Welcome to IBankingFAQ

I am excited to say that I’ve finished work on my book, How to Be an Investment Banker: Recruiting, Interviewing, and Landing the Job + Website (Wiley Finance) which will be released on April 1, 2013. It was a lot of work but I hope many of you find it useful for the investment banking recruiting process. Basically, the book is an extension of this site covering in greater detail information about investment banking and lifestyle, recruiting and interviewing and the technical stuff that you need to know, including an overview of accounting, finance, financial statement analysis, valuation, modeling, M&A and LBOs.

I’ve also recently launched a website called igokids. This has nothing to do with finance or investment banking but it is my full-time gig so feel free to check it out. igokids is local search and discovery site for everything kid related in New York City (in a nutshell, “Yelp for parents”). I’m proud to say that I developed it from scratch myself, being a totally self-taught programmer. See all the exit opportunities that investment banking can lead to?

I also want to remind you about my financial modeling self study program, which costs only $49. You can learn how to build a financial model in the comfort of your own home or office. Knowing how to build an integrated cash flow model will definitely help you in your interviews plus it is a great way to prep for those dreaded technical interview questions. Click to view more information about the financial modeling self study program.

As always, I look forward to your comments/suggestions/questions and emails (andrew [at] ibankingfaq.com).

How to be an Investment Banker

Random FAQ: What are the different types of groups within an investment bank?

Broadly speaking, there are two types of groups within a typical investment bank (or investment banking division):  product groups and industry groups (also called sector groups or domains).  The three most well known product groups are mergers and acquisitions (M&A), leveraged finance (lev fin) and restructuring.    Bankers in product groups have product knowledge and tend to execute transactions (respectively, M&A transactions, leveraged buyouts (LBO’s) and restructuring transactions/bankruptcies).

Bankers in industry groups cover specific industries and tend to do more marketing activity (pitching).  Industry bankers tend also to have more of the relationships with companies’ senior management than do product bankers (though some senior product bankers have excellent relationships as well).  Examples of common industry groups include FIG (Financial Institutions Group), Healthcare, Consumer/Retail, Industrials, Energy and Utilities, Natural Resources, TMT (Telecom, Media and Technology), Gaming and Lodging and Real Estate.  Often subgroups exist within the broader group.  For example, a Healthcare group may be segregated into biotechnology, medical devices, managed care, pharma, etc.  Though not covering a specific industry, one other group that falls under the category of “industry” groups is Financial Sponsors.  Bankers in a Financial Sponsors group cover (have relationships with and market their services to) private equity firms.

View more frequently asked questions about: About Investment Banking.