Comments for IBankingFAQ http://www.ibankingfaq.com Learn about investment banking...become an investment banker Thu, 11 Mar 2010 17:27:34 -0700 http://wordpress.org/?v=2.8.4 hourly 1 Comment on Comments / Suggestions / Questions… by Andrew http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-4/#comment-17552 Andrew Thu, 11 Mar 2010 17:27:34 +0000 http://www.ibankingfaq.com/?p=80#comment-17552 Mike, I have seen plenty of CPAs become investment bankers. Typically, however, this happens after they get an MBA at a top business school. Folks with accounting backgrounds tend to do well as Investment Banking Associates. It may be possible for you to make the switch into investment banking without the MBA but you would likely start as a first year Analyst. If you want to give that a shot then try to network your way to get interviews. If you are serious about banking, I would start thinking about getting an MBA. Mike, I have seen plenty of CPAs become investment bankers. Typically, however, this happens after they get an MBA at a top business school. Folks with accounting backgrounds tend to do well as Investment Banking Associates. It may be possible for you to make the switch into investment banking without the MBA but you would likely start as a first year Analyst. If you want to give that a shot then try to network your way to get interviews. If you are serious about banking, I would start thinking about getting an MBA.

]]> Comment on Comments / Suggestions / Questions… by Mike http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-4/#comment-17510 Mike Sat, 06 Mar 2010 05:07:31 +0000 http://www.ibankingfaq.com/?p=80#comment-17510 Andrew, I want to say that you have a wonderful site here. I have a query for you. I am a recently qualified chartered accountant in Canada (24 yrs old), and work for a BIG firm. I have spent the last 4 years in financial services, and have a pretty good grip on the industry. I do not have a CFA or MBA or any finance related designation. My question to you is, in your experience have you ever seen a certified accountant (CPA or CA) become an ibanker? If so what type of obstacles do i face if i wanted to pursue this career path. Being a CA would i have a leg up on say someone who just has a finance degree, or would i be judged pretty much at the lowest level? thanks for your help Andrew,

I want to say that you have a wonderful site here. I have a query for you. I am a recently qualified chartered accountant in Canada (24 yrs old), and work for a BIG firm. I have spent the last 4 years in financial services, and have a pretty good grip on the industry. I do not have a CFA or MBA or any finance related designation.

My question to you is, in your experience have you ever seen a certified accountant (CPA or CA) become an ibanker? If so what type of obstacles do i face if i wanted to pursue this career path. Being a CA would i have a leg up on say someone who just has a finance degree, or would i be judged pretty much at the lowest level?

thanks for your help

]]> Comment on Comments / Suggestions / Questions… by Andrew http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-4/#comment-17465 Andrew Thu, 25 Feb 2010 21:44:55 +0000 http://www.ibankingfaq.com/?p=80#comment-17465 Steven, I'm not 100% sure that I understand your question. As you correctly say, when a company goes public (IPO) investors buy these shares. These investors are then free to sell to other investors, who can then sell to yet other investors, etc. This is what's known as the "stock market." Whoever buys the shares, owns the shares. Does that help you? Steven, I’m not 100% sure that I understand your question. As you correctly say, when a company goes public (IPO) investors buy these shares. These investors are then free to sell to other investors, who can then sell to yet other investors, etc. This is what’s known as the “stock market.” Whoever buys the shares, owns the shares. Does that help you?

]]> Comment on Comments / Suggestions / Questions… by Steven http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-4/#comment-17461 Steven Thu, 25 Feb 2010 10:43:23 +0000 http://www.ibankingfaq.com/?p=80#comment-17461 Hello, Andrew! I have perhaps stupid question but nevertheless.. When a company goes public, it issues shares and investors buy these shares.. I wonder to whom belong shares that circulate in the stock market? to the company or investors or somebody else? Hello, Andrew!
I have perhaps stupid question but nevertheless.. When a company goes public, it issues shares and investors buy these shares.. I wonder to whom belong shares that circulate in the stock market? to the company or investors or somebody else?

]]> Comment on Comments / Suggestions / Questions… by Kyle http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-3/#comment-17453 Kyle Tue, 23 Feb 2010 23:46:42 +0000 http://www.ibankingfaq.com/?p=80#comment-17453 Andrew, I appreciate your feed back. God Bless. Andrew,

I appreciate your feed back. God Bless.

]]> Comment on Comments / Suggestions / Questions… by Andrew http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-3/#comment-17452 Andrew Tue, 23 Feb 2010 21:12:16 +0000 http://www.ibankingfaq.com/?p=80#comment-17452 Teddy, other than the handful of examples of these types of questions that I've got posted on this site, I don't know of any other places that have sample interview questions. Perhaps some of the interview guides that you can purchase have some more examples. The best way I know how to learn how the financial statements fit together is to either take some accounting classes (pretty tedious) or practice financial modeling. In order to balance a financial model, you need to understand how the 3 statements flow together so that's a good way to learn. Otherwise, just go through a financial statement line by line and ask yourself how that particular line item affects that other 2 statements. In other words, how does revenue affect the BS and CF? How does Depreciation or Capex affect the IS and BS? etc. I do have plans to release a self study accounting module which should help teach these concepts (similar to the financial modeling module that I've recently introduced) but this probably won't be available soon enough for you. Hope that helps a bit. Teddy, other than the handful of examples of these types of questions that I’ve got posted on this site, I don’t know of any other places that have sample interview questions. Perhaps some of the interview guides that you can purchase have some more examples. The best way I know how to learn how the financial statements fit together is to either take some accounting classes (pretty tedious) or practice financial modeling. In order to balance a financial model, you need to understand how the 3 statements flow together so that’s a good way to learn. Otherwise, just go through a financial statement line by line and ask yourself how that particular line item affects that other 2 statements. In other words, how does revenue affect the BS and CF? How does Depreciation or Capex affect the IS and BS? etc. I do have plans to release a self study accounting module which should help teach these concepts (similar to the financial modeling module that I’ve recently introduced) but this probably won’t be available soon enough for you. Hope that helps a bit.

]]> Comment on Comments / Suggestions / Questions… by Andrew http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-3/#comment-17451 Andrew Tue, 23 Feb 2010 21:06:04 +0000 http://www.ibankingfaq.com/?p=80#comment-17451 Kyle, Congrats on your banking offers. I don't think there is a right or wrong answer but here are my thoughts. If you are happy long term in Chicago (or in the midwest) then I would definitely lean towards the Chicago position. If your goal is ultimately to wind up in NY then I would lean towards NY. As long as you are getting a good experience in Chicago I wouldn't worry about being in a satellite office. This is especially true if you are covering industrials/transportation which are often covered out of Chicago. Bottom line (to me at least) if you like the bankers in the Chicago office, think you'll get good deal experience and are happy living in Chicago, then I would definitely take the Chicago position. Kyle,
Congrats on your banking offers. I don’t think there is a right or wrong answer but here are my thoughts. If you are happy long term in Chicago (or in the midwest) then I would definitely lean towards the Chicago position. If your goal is ultimately to wind up in NY then I would lean towards NY. As long as you are getting a good experience in Chicago I wouldn’t worry about being in a satellite office. This is especially true if you are covering industrials/transportation which are often covered out of Chicago. Bottom line (to me at least) if you like the bankers in the Chicago office, think you’ll get good deal experience and are happy living in Chicago, then I would definitely take the Chicago position.

]]> Comment on Comments / Suggestions / Questions… by Andrew http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-4/#comment-17450 Andrew Tue, 23 Feb 2010 20:59:20 +0000 http://www.ibankingfaq.com/?p=80#comment-17450 Myv, Generally the work between product and coverage groups is about the same, in that you do analysis, valuation, presentations, etc. However, product groups such as M&A or leveraged finance tend to do more modeling and coverage groups tend to do more pitching. However, there are exceptions as certain banks (and certain groups within banks) operate differently. I'm not familiar with the Client Management Analyst position so I can't comment specifically on it. Myv,
Generally the work between product and coverage groups is about the same, in that you do analysis, valuation, presentations, etc. However, product groups such as M&A or leveraged finance tend to do more modeling and coverage groups tend to do more pitching. However, there are exceptions as certain banks (and certain groups within banks) operate differently. I’m not familiar with the Client Management Analyst position so I can’t comment specifically on it.

]]> Comment on Comments / Suggestions / Questions… by Andrew http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-4/#comment-17449 Andrew Tue, 23 Feb 2010 20:55:12 +0000 http://www.ibankingfaq.com/?p=80#comment-17449 Matt, I am not very familiar with interviews for equity research positions so I really can't give advice with regards to the case study. I would have a basic understanding of valuation (specifically equity multiples like P/E) and financial ratio analysis, as you mentioned. I wouldn't expect it be as technical as investment banking interviews, but that is just a guess on my part. You may want to search or ask this question on www.wallstreetoasis.com or www.analystforum.com as you might find more folks that have gone through ER interviews on those sites. Sorry I can't be more helpful. Matt, I am not very familiar with interviews for equity research positions so I really can’t give advice with regards to the case study. I would have a basic understanding of valuation (specifically equity multiples like P/E) and financial ratio analysis, as you mentioned. I wouldn’t expect it be as technical as investment banking interviews, but that is just a guess on my part. You may want to search or ask this question on http://www.wallstreetoasis.com or http://www.analystforum.com as you might find more folks that have gone through ER interviews on those sites. Sorry I can’t be more helpful.

]]> Comment on Comments / Suggestions / Questions… by Andrew http://www.ibankingfaq.com/comments-suggestions-questions/80/comment-page-4/#comment-17448 Andrew Tue, 23 Feb 2010 20:51:22 +0000 http://www.ibankingfaq.com/?p=80#comment-17448 Edwin, Houlihan Lokey interviews tend to be pretty technical so I would definitely be prepared for them. As for recent news I don't know of any off hand. I would do a quick Google News search for them and see what comes up. Edwin,
Houlihan Lokey interviews tend to be pretty technical so I would definitely be prepared for them. As for recent news I don’t know of any off hand. I would do a quick Google News search for them and see what comes up.

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