2. Sponsors for Educational Opportunity Investment Banking Overview Part 2 Patrice Mitchell & Andrea M. O’Neal Co-Managers, Investment Banking Program

3. 2 Roles within Investment Banking  Managing Director  Manages the relationship between the client and the bank  Negotiates terms of the deal and fee structure  Vice President  Manages the deal/pitch process  Reviews all work before it goes to the MD  Associate  Checks the analyst(s)’ work  Analyst  Builds the financial model  Performs valuation analyses  Constructs the pitchbook  Summer Analyst  Assist the analyst

4. 3 Analyst Responsibilities  Performing financial valuation, discounted cash flow (DCF) and multiples-based analyses (comps)  Building and using financial models  Financial models are tools constructed in Microsoft Excel used to forecast a Company’s operating performance  Preparing presentation materials and drafting registered documents for the SEC  Pitchbooks are presentations made to clients highlighting idea(s) to address company-specific needs  Drafting sessions are meetings between the client, bankers and lawyers where the aim is to generate a “clean” document for the government and potential investors  Conducting industry and product research

5. 4 Attributes of a Good Analyst / Summer Analyst  Attention to detail  Strong work ethic  Quick learner  Ability to communicate effectively  Understanding of accounting principles  Solid quantitative, analytical and technical skills  Familiarity with Microsoft Office – tech savvy

6. 5 Benefits of a Position within Investment Banking  Exposure  Unrivaled access to senior management of multinational and multibillion-dollar corporations  Prestige  Advising corporate clients on financings and M&A opportunities  Participation on the “headline grabbing” deals  Transferable Skills  Modeling  Valuation – Comps, DCF  Financial Statement Analysis  Multitasking, proven work ethic

7. 6 Day in the Life 9:00 a.m. – Rush out of the apartment to the subway station for a 30-minute commute. 9:30 a.m. – Quickly check e-mail, calendar and status of current projects 10:00 a.m. – Quickly browse the Wall Street Journal, Yahoo! Finance and Bloomberg to get up to speed on market news 10:30 a.m. – Start working on the ever-growing list of things to do. Review financial model for project #1 before sending it to other members of the deal team. Prepare comps for project #2. 1:10 p.m. – Grab lunch; sometimes an hour, most of the time you need to eat at your desk. 1:30 p.m. – The associate on project #1 reviewed the analysis and provides constructive comments, which are “turned” (incorporated) into the model. 2:30 p.m. – Conference call to discuss model for Project #1, which produces more issues/questions that need to be addressed. 3:30 p.m. – Start the pitchbook presentation for project #2 by putting together a “shell” (outline). 4:00 p.m. – Grab coffee with co-workers 4:15 p.m.– Get back to the office and get cranking on the revised model; Complete revisions and send to the deal team before 6:00 p.m. deadline. Send shell of presentation (Project #2 to associate) 5:30 p.m – Send out the revised model (after the associate review it)

8. 7 Day in the Life (cont.) 6:00 p.m. – Start working on project #3; this one requires updating an old pitchbook for a different client with current market data 7:30 p.m. – Dinner time. Order with a bunch of colleagues from online delivery service 8:30 p.m. – Return to cubicle with a heavily, marked-up copy of the presentation for project #3 11:00 p.m. – After turning all the comments, send the revised version to associate who does a final review and sends it to Production. 11:15 p.m. – Reopen the model for project #1, continue working on analysis 12:30 a.m. – Finish up the comps for project #2, send them to the associate for review. 1:00 a.m. – Production calls to inform the analyst the books are done; “Flip the books” which means turn each pitch book to make sure all pages were printed correctly and are in the appropriate order 1:30 a.m. – The books are flipped and send them by car service to one of the attendees of the meeting the following day. 2:15 a.m. – Stop working on model and comps when all previous comments are incorporated and issues are resolved; catch a cab to get home; rest for another busy day

9. Next Steps  Zoologic  Intro. to Securities Markets  Intro. to Corporate Finance  Intro. to Analyzing Financial Statements  Time Value of Money  Intro. to Equity Valuation  Recommended reading list  Training the Street: Valuation  Liar’s Poker  Monkey Business 8  Vault Career Guides  Invest Banking  Finance Interviews (quick math and case study)  Top 50 Banking Employers  Webinars  SEO alums  Enroll in finance and accounting courses

10. Periodicals Wall Street Journal Financial Times BusinessWeek Internet http://dealbook.blogs.nytimes.com/ http://finance.yahoo.com http://money.cnn.com http://bloomberg.com http://investopedia.com SEO Partner Firm websites Television CNBC More Resources

11. 10 Questions? Patrice Mitchell pmitchell@seo-usa.org Andrea O’Neal aoneal@seo-usa.org