Investment Banking

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BBA Career Management Center Online Workshops
Investment Banking
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Function of Investment Banks

• Capital raising/ underwriting
• Financial advice and execution
• Sales and trading
• Principal activities

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Investment Banking Division
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Overview of Morgan Stanley
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What Does an Analyst Do?
Corporate Finance

• Most corporate finance analysts work with an
  industry or regional coverage group
• Focus on specific industry(ies) or region(s)
• Market and sell a companys products
• Analyze potential advisory and transactional
  assignments for clients

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Hiring Process for Analysts

• Review resumes
• Screening interviews on campus
• Call-backs on campus
• Full-day session in New York
• Offers extended
• Optional selling day

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What Makes a Good AnalystCandidate?

• Skills
• Intelligence
• Ability to learn quickly
• Analytical ability
• Precision and accuracy in work
• Strong interpersonal skills
• Creativity

• Personality
• Energetic, hardworking
• Outgoing, personable
• Self-motivated, tenacious
• Reliable
• Mature, committed

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Sales Trading

• Disseminate the Firms strategy and research
  products to institutional clients (investment
  managers, mutual funds, banks, insurance
  companies, state and local pension funds,
  corporate funds, endowment funds/foundation
  funds, hedge funds)
• Provide actionable investment ideas to analysts
  and portfolio managers at client firms
• Market IPOs and secondary offerings to providers
  of capital
• Provide feedback to capital markets and corporate
  finance divisions on market dynamics, investor
  concerns and deal pricing
• Develop and nurture relationships at all levels
  of client organizations
• Assist in penetration of major accounts to
  enhance relationships at all levels of the
  organization

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Merchant Banking Division

• Identify investment opportunities
• Work on the analysis and evaluation of equity
  investments
• Execute investment and financing transactions
• Monitor the performance of existing investments
• Evaluate alternatives for lower financing costs
  and sale of existing investments

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Equity Capital Markets

• Analyze equity market conditions for corporate
  issuers
• Determine feasibility of equity offerings
  through
• Liquidity analysis
• Balance sheet impact
• Cost of capital analysis
• Relative public market valuations
• Assist equity capital markets and corporate
  finance bankers to present corporate clients with
  strategic equity alternatives
• Assess the quality of institutional and retail
  demand of equity offerings in order to
  effectively price transactions

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Client Services Group

• Execute equity and debt transactions originated
  in all industry-specific corporate finance
  coverage groups
• Initial Public Offerings (IPO)
• Follow-on Stock Offerings
• Secondary Stock Offerings
• Convertible Debt and Trust Convertible Preferred
  Stock Offerings
• High-Yield Debt Offerings
• Block Trade and Overnight transactions
• -Financial Products (e.g., PEPS, PERCS)
• Work in close contact with Equity and Fixed
  Income Divisions
• Protect company through on-site operational and
  financial due diligence
• For IPOs and high yield offerings, create
  valuation and cash flow models and earnings
  projections
• Draft and file registration documents with SEC
• Draft marketing prospectus (Red Herring) and
  final prospectus
• Identify company-and industry-specific investment
  merits to develop marketing strategy to
  facilitate the sale of an issue
• Prepare road show presentation for institutional
  asset managers and travel with clients to market
  the issue

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Real Estate

• Provide a variety of investment banking services
  with real estate as the underlying asset
• Perform various financial analyses and valuations
  on real estate advisory, sellside, buyside, and
  financing for developers, institutions, and
  corporate clients
• Identify and evaluate potential investment
  opportunities for the company

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Mergers Acquisitions

• Perform quantitative and qualitative analyses in
  order to evaluate and recommend various financial
  alternatives
• Execute the following transactions
• Divestitures
• Acquisitions
• LBOs
• Recapitalizations
• Joint ventures
• Work in smaller MA groups
• Generalist Pool
• Corporate Restructuring Group
• Project Finance Group
• Media/Telecom
• Insurance/Non-bank Financials
• Banks