Investment banking (UK definition) is the traditional aspect of investment banks which involves helping customers raise funds in the Capital Markets and advising on mergers and acquisitions. When speaking of jobs in “the City” or on “Wall St.” people are often referring to Investment Banking jobs. Investment banking may involve subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target.

Other terms for the Investment Banking Division include Mergers & Acquisitions (M&A) and Corporate Finance.

In this definition of Investment Banking we include Merchant banking as most of the Merchant Banks have been acquired by Investment Banks. Merchant Banking involves the private equity activity of investment banks. Sometimes, merchant banking is a part of the Alternative Investment Division.

Investment Banking includes the advisory, execution and deal making activities likely to take place in a corporate finance environment.

Activities include:

• Raising capital for seed, start-up, development or expansion capital
• Mergers, de-mergers, acquisitions or the sale of private companies
• Mergers, de-mergers and takeovers of public companies, including public-to-private deals
• Management buy-out, buy-in or similar of companies, divisions or subsidiaries – typically backed by private equity
• Equity issues by companies, including the flotation of companies on a recognised stock exchange in order to raise capital for development and/or to restructure ownership
• Raising capital via the issue of other forms of equity, debt and related securities for the refinancing and restructuring of businesses
• Financing joint ventures, project finance, infrastructure finance, public-private partnerships and privatisations
• Secondary equity issues (ie. selling additional shares in the company), whether by means of private placing or further issues on a stock exchange, especially where linked to one of the transactions listed above.
• Raising debt and restructuring debt, especially when linked to the types of transactions listed above.

Roles in Investment Banking

Corporate Finance Advisors

In the UK, the term generally refers to those who act as advisers on the types of transactions listed above. This may also include sponsors or nominated advisers for IPOs.
Such lead advisers may be from investment banks, accountancy/professional services firms or independent advisory firms (sometimes known as “boutiques”). In some cases, they may also include individual consultants who specialise in such work.

Reporting Accounts

Accountants employed by the buyer of or investor in a business to ensure that the financial workings of the target company are fully disclosed and are in order. The scope of such work can be driven by the requirements of the investor/buyer, or by regulation, and the reports issued can be private or public, depending on the circumstances.

Lawyers

Solicitors who are primarily involved in advising on the types of transaction listed above, including legal due diligence.

Debt Providers/Bankers

Bankers, other debt providers and debt-advisory specialists who are principally involved in the types of transactions listed above.

Brokers

Brokers who advise on, and support raising capital for transactions (IPOs, acquisitions, disposals etc.)

Other Due Diligence

Other specialist advisers employed to support the types of transaction listed above, if they are primarily engaged in supporting such transactions. Examples include commercial due diligence, environmental due diligence, insurance and other types of consultancy work.
Some of the benefits of working in corporate finance are:

1. You generally work in teams which help you work with people
2. It’s a lot of fun to tackle business problems that really matter
3. You’ll have many opportunities to travel and meet people.
4. The pay in corporate finance is generally very good.

If I work in Corporate Finance what will I be doing?

A career in corporate finance means you would work for a company to help it find money to run the business, grow the business, make acquisitions, plan for it’s financial future and manage any cash on hand. You might work for a large multinational company or a smaller player with high growth prospects. Responsibility can come fast and your problem-solving skills will get put to work quickly in corporate finance.
On a day-to-day basis, typical activities in Corporate Finance will include:

• Thoroughly researching market conditions and developments;
• Identifying new business opportunities;
• Carrying out financial modelling, then developing and presenting appropriate financial solutions to clients;
• Liaising with the chief executive and chief finance officer of large and small organisations;
• Structuring marketing campaigns for transactions;
• Co-ordinating teams of professionals, including accountants, lawyers and PR consultants;
• Provide advice on capital structure;
• Constructing new issue and takeover timetables;
• Constructing IPO prospectus (Offering price, number of shares, subscription procedure, management details, operations of business, industry, financial statements);
• Liaise with UK Listing Authority (UKLA) to produce ‘Listing Particulars’;
• Due Diligence on prospectors & financial statements;
• Breakfast, Lunch, Dinner Road Shows (Drinking);
• Publish financial announcement (notify exchange, send circular, send to information provider).

How do I get a graduate scheme / internship / entry level job or career in Corporate Finance?

Obtaining a graduate scheme, internship or entry level role in corporate finance can be very challenging and competitive – though very achievable by getting your application, CV, interview and general approach right. You can guarantee that ninety percent of applicants for corporate finance roles will not know how to apply, so getting your application in the top ten percent makes things a lot more achievable.

Approaching the company in the right way will make all the difference. Combining the right approach with a strong interview (and in some cases assessment centre) writ a strong focused tailored CV will go a long way. Make sure you have gone through the free videos on this sight by entering your name and email address in the top right of this screen underneath the video. Once you have filled this in you will have instant access to everything you need to secure your career in corporate finance.

If you would like to add comments to this description, give any feedback or ask any questions about careers in banking & finance in this area please comment below

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