Boston University Finance Club Investment Banking Boston University Finance Club

Introductions Ricardo Alex Analyst, Technology M&A at Jefferies Graduated SMG in 2011 with a dual concentration in Entrepreneurship & Finance Previous Internships DFJ Esprit Jefferies Alex Analyst at Bowen Advisors Graduated SMG in 2011 with a dual concentration in Finance & Marketing Merrill Lynch Laven Partners

What is investment banking? A financial intermediary between investors and companies Sports agents represent their clients in all major financial matters Investment bankers represent their clients in all major financial/strategic matters Investment Banks Generally have 3 Major Divisions Sales and trading Broker for institutional clients Proprietary trading Research Corporate finance & M&A Corporate Finance IPO Private placement Restructuring M&A Sellside Buyside 2010 Total Global Banking Revenue ($USD Billion) The Economist. http://www.economist.com/node/18654578 Financial Times. http://markets.ft.com/investmentBanking/tablesAndTrends.asp

Type of Investment Banks Bulge bracket Full service, thousands of employees, billions in annual revenue Goldman Sachs, Morgan Stanley, BofA/Merrill Lynch, JP Morgan & Co., Credit Suisse, Citigroup, Deutsche Bank, UBS Full service mid-market Jefferies, CIBC, Cowen, Morgan Keegan, Needham, Raymond James, RBC, Bulge boutique High end, large deals, M&A only Evercore, Greenhill, Blackstone, Lazard Boutique Bowen Advisors, America’s Growth Capital, Capstone, GCA Savvian, McNamee Lawrence, Pagemill, Mooreland, Revolution Partners (acquired by Morgan Keegan), Updata, many others

Introductions Ricardo Alex Analyst, Technology M&A at Jefferies Graduated SMG in 2011 with a dual concentration in Entrepreneurship & Finance Previous Internships DFJ Esprit Jefferies Alex Analyst at Bowen Advisors Graduated SMG in 2011 with a dual concentration in Finance & Marketing Merrill Lynch Laven Partners

What do Investment Bankers Do? Understand the industry, market sentiment and economy Determine the most stable cap structure Consider the best growth alternatives Pitch the positioning of the business, the timing for the transaction and your bank’s capabilities Where does business come from? Bake-offs Relationships Coverage Banker Idea generation by the bank

The Role of an Analyst Market Research, Buyer/Seller Profiles, Comparable/Premium Analyses, Due Diligence / Data Rooms, Drafting Materials Finalize Marketing Materials, (CIMs) Financial Modeling Management Presentations, Pitches, Negotiation Analyst Information Associate Senior Level

Pros and Cons Keeping an appropriate life / work balance is key Personal growth Technical Analytical Presentation People skills Working on Deals Advise Senior Management Compensation Career development Cons 80-130 hour weeks ~19 hours a day 7 days a week Iterative Process “Culture” www.mergersandinquisitions.com

How to get in the field? Networking Internships Interview VC Hedge Fund PE Interview Research: Corporate hierarchy, division, past performance, current news and events Show that you are eager to learn and work hard Mention that you are always on time and are able to meet deadlines Work on your people skills

Exit Opportunities & Alternatives Venture Capital Private Equity Hedge Funds Market leading industry firms Alternatives Asset Management Corporate Development

BU Finance Club Boston University Advantage Strong general management program “The Harvard Business School takes an approach to learning that says that all business problems are interconnected”1 Apply for summer internships in finance related jobs now! Semester abroad  internship LinkedIn cold call Jeremy Shinewald, Founder & President of mbaMission. http://www.youtube.com/watch?v=9Y6022aNtnQ

Questions?

Back up slides

Links Mergers and Inquisitions www.mergersandinquisitions.com Investment Banking overview http://www.youtube.com/watch?v=gRSJG6QB03I Financial Times – League Tables

How is IB affected by the market & economy? ECM Market sentiment Trends in the market Appetite What sectors are in Monetary policy

Equity Research Sales and Trading Valuing company Speaking to management, understanding the business strategy Evaluating situations Sales and Trading

Advisory Capital structure Growth Acquisition Organic Divest a business Understanding the market sentiment and economy Strong market Higher M&A volume, easier to raise capital Weak market Lower transaction volume

Departments of a Full-Service Investment Bank Middle & Back Office Front Office Client Equity Research Sales and Trading Investment Banking Manage the relationship with firms wanting to raise money Equity capital markets Manage the relationship with investors (public offerings) Bridge between IB and Equities

Investment Banking Landscape YTD Deals by Region ($USD Million) (1) YTD Top 10 Banks (1) Financial Times. http://markets.ft.com/investmentBanking/tablesAndTrends.asp