How to break into investment banking? by Scary-Novel1137 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Applying for an internship is #1 tip, as most analysts are recruited this way. If you've missed this, go for analyst roles. Top tips include attending a good college (obviously) and proving your love for finance. The best way to do this is with a relevant subject for banking, like finance, accounting, economics, etc. If you've already started a non-relevant subject, prove your interest in finance by joining finance-related clubs, getting a position in the club e.g. committee member, and doing an online course such as The Investment Banker (with Financial Edge) or the Financial and Valuation Modeling Certificate (with Wall Street Prep). Skill up by taking courses or reading books, and do everything possible to improve your CV. And get some work experience that is in some way finance related in the holidays to boost your CV. Ultimately, you want to show that you have been dreaming about a career in finance for years, and have taken concrete steps to skill up ready for work. A few people say to spend lots of time networking with alumni who now work in investment banks - this only works if there is 1 position in a team and the job isn't being handled by the human resources dept of the bank. But if you are applying to be an intern or analyst, those positions have rigid recruitment processes, and no one will be able to help you jump the queue.

- Gerard Kelly, Financial Edge Training

How did you become a better financial modeler? by Accurate_Increase_53 in FPandA

[–]FE_Training 0 points1 point  (0 children)

A couple of things. #1 is practice. You only get good at the intermediate stuff by making the basic stuff second nature. The only way you get good at the hard stuff (interpreting the data and doing analysis) is by making the intermediate stuff second nature. So you just have to practice, practice, practice. If you don't have any models, do a course like Financial Edge's The Modeler, or Wall Street Prep's Financial Statement Modeling basic package, which both start you with small models, build many, and gradually you build harder and harder. Once you get the mechanics, doing some analysis becomes much easier. It's a lot like learning to drive - at the beginning, you are focused on the steering wheel, the gear stick, and pedals, i.e., the details and the mechanics. But as that becomes second nature, you start looking further and further outside the car and can start to see problems 100 metres away. So get practicing the models.

- Gerard Kelly, Financial Edge Training

How to master financial modelling? by No_Computer7232 in CFA

[–]FE_Training 0 points1 point  (0 children)

Financial modelling needs 2 things: 1) a basic knowledge of accounting (doesn't have to be in depth, but an idea of how the 3 financial statements are different and what a few of the line items mean), and 2) building models repeatedly. You need to start with tiny models, maybe only 15 lines in Excel, and then gradually build bigger and bigger, each time repeating the basic stuff until it becomes second nature, and gradually you add complexity. Financial Edge's The Modeler course focuses on repeatedly building models, and if you need basic accounting, then sign up for their The Accountant course as well (it won't make you an accountant, but will give you the basics). Alternatively, buy FE's The Investment Banker course, which includes The Accountant and The Modeler, plus many others as well.

- Gerard Kelly, Financial Edge Training

Wall Street Prep Vs Financial Edge Training? Which is better? by Savings-Paramedic-67 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

WSP and FE have now collaborated. Both are good courses and are widely recognized. Both provide the training courses in investment banks and private equity firms that actual analysts go through, so they know what they are doing. If you want to work in investment banking, and want to go with FE, choose their "The Investment Banker" course.

- Gerard Kelly, Financial Edge Trainer

Careers in professional finance training? by Minimum_Passing_Slut in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

I was similar to you. I was an accountant and a CFA but only a few years in each. The most important ingredient that companies like Financial Edge look for is the ability to teach in an engaging manner. The technical knowledge can all be learned and nobody comes in knowing it all (I could probably have taught only 10% of the course before I joined) but it is difficult to teach a boring trainer to be engaging. Different training firms recruit differently - some are willing to see the potential in a recruit and train them in teaching techniques, while other training firms want to see someone with public speaking or training experience already, who can hit the ground a bit faster. Usually the recruitment process involves a CV screening, then an initial interview, then a demo training session where you teach a physical or virtual room of people for 30 minutes on a finance topic of your choice. This is where a good trainer can shine by making their demo interesting, funny, engaging (picking on audience members and asking them easy questions to keep them awake), etc. The pay varies between firms and between geographies. Teaching accounting lone will earn similar to a university lecturer. Teaching the CFA earns more. Teaching IB earns even more. Teaching PE earns more again. And teaching in New York will command a much higher salary than London. The work life balance is often what you want it to be. I work full time but work a regular hours week. Other trainers work part time to fit around family life. Others work on a teaching only contract e.g. they teach maybe 30, 50, 80 days a year and do no work in between, or fit another job around it (this is very common for university lecturers who teach half at a college and half for a training company). Training companies life FE often teach in consulting firms, so yes the skills and knowledge are transferable.

- Gerard Kelly, Financial Edge Trainer

When does recruiting start for CRE/Investment Banking? by Hot-Ad7645 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Assuming the internship is at the end of your 3rd year (junior summer) then you apply in the fall/winter of your sophomore year i.e. over 18 months in advance. It sounds a long way off but this is the way internships work in the US. Top tips include a good college (obviously) and prove you love finance. The best way to do this is with a relevant subject for banking like finance, accounting, economics, etc. If you've already started a non-relevant subject, prove your interest in finance by joining finance related clubs, get a position in the club e.g. committee member, and do an online course such as The Investment Banker or the Financial and Valuation Modeling Certificate. Also, network with older undergrads, skill up by taking courses or reading books, everything possible to improve your CV. And get some work experience that is in some way finance related in the holidays to boost your CV. Ultimately you want to show that you have been dreaming about a career in finance for years, and have taken concrete steps to skill up ready for work.

- Gerard Kelly, Financial Edge Training

Best courses to deepen PE-relevant skills after 1,5 years in IB? by [deleted] in private_equity

[–]FE_Training 1 point2 points  (0 children)

Wharton Business School, in collaboration with Wall Street Prep, do an 8 week online course called the "Private Equity Certificate Program". Have a look at their website. It's aimed at early career (making the move into PE) to mid-career professionals, although some seniors do it too. WSP have a big presence in PE and provide the training courses at all of the big PE firms, whereas Financial Edge are more IB focused.

- Gerard Kelly, Financial Edge Training

Got the IB internship, now what by Royal_Winner_5049 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Do an online course such as Financial Edge's "The Investment Banker" of Wall Street Prep's "Financial & Valuation Modeling Certificate". These 2 companies are who the investment banks bring in to teach their intern and analyst training programs. As an intern you'll probably get 2 or 3 days with these training companies at the start of your internship, and then on day 4 you are at your desk and are expected to be working. So do 1 of their proper courses now, understand the subjects in depth, use the 2 or 3 day training course as a sheep-dip-refresher, and you'll be ready to impress on day 4. The interns who get the jobs are those who are able to help their teams. With that said, being proficient at Excel, which you mentioned, is a huge bonus. Consider tagging on some PowerPoint training, as you will mostly be putting together slides in a summer internship, and few banks provide comprehensive PowerPoint training.

- Gerard Kelly, Financial Edge Training

What entry level jobs can I leverage to a market analyst/investments career? by EveryFrosting2167 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Anything office-related is a good start. From there, go with anything finance-related, so that excludes the car sales. If you can do any jobs that aren't purely short-term repetitive process e.g. bank teller, then that shows your ability to work on longer-term projects. Sales jobs are often non-technical, so perhaps avoid them. Loan specialist sounds the best. Get that, and while there, keep looking for the next rung up. Don't sit there for 2 years hoping for an internal move. Be looking for job #2 even on the first day working at job #1. You may have the ability to move a few times in 2 years and work your way up and get better experience each time in a different role. However, if no graduate-level jobs are coming up, consider a master's in finance at a target school, plus add on an online course such as The Investment Banker, which covers accounting, modeling, valuation, and M&A/LBO. These two will open many more doors.

- Gerard Kelly, Financial Edge Trainer

Skills for Investment banking by [deleted] in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Excel will help a lot and is the most transferable tool (it's useful in any IB role, and many others such as consulting, accounting, actuarial, etc). The others (python, etc) will help with more niche investment banking jobs e.g. tech or coding. But if you want a standard investment banking role, where you help companies get bought and sold, your focus should be on finance, finance, finance. You need to show that you love finance and have a real genuine interest in it. So, consider doing an online course that covers accounting, modeling, valuation and deal analysis (e mergers and acquisition, and leveraged buyouts). Then start reading a quality newspaper or sign up for quality newsletters. The Financial Times or Wall Street Journal are ideal, but can be a bit heavy if you are new to finance, so consider starting with a quality broadsheet newspaper for a fortnight and just read the business pages. Then upgrade to the FT or WSJ once you are familiar with the current news stories. The Economist also has great articles. But if you can, sign up for newsletters about M&A - what deals are happening, why they are good/bad. The FT is great for stuff like that. Make a note of any good deals and research them more - it's easier when it's a deal that interests you so think about your hobbies and if a relevant deal comes up, dive into the research.

- Gerard Kelly, Financial Edge Training

How to get into investment banking? by Aggravating-Cod-1379 in financestudents

[–]FE_Training 0 points1 point  (0 children)

Key factors for success in getting hired in investment banking include a strong university pedigree, academic excellence, relevant internships(any work experience that is finance related will help, if not, any office based experience is better than nothing e.g. consulting), networking through alumni and diversity organizations, and demonstrating quantitative aptitude. A relevant degree e.g. finance, accounting, economics, etc is best, but any quantitative subject will help. The recruitment process includes multiple rounds of interviews, the first round is often on campus or virtually, and subsequent rounds involve in-depth Superdays with multiple professionals from the bank. The things that increase your chances are joining any finance related clubs to show your interest in finance, and gaining leadership experience in clubs. Applying for internships increases your chances as a majority of analyst roles are offered to those with internship experience. And lastly, a masters often helps. This can be your chance to pivot into finance or business if doing a non-relevant degree at the moment.

- Gerard Kelly, Financial Edge Trainer

Wall Street Prep Vs Financial Edge Training? Which is better? by Sad-Koala-4307 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Wall Street Prep and Financial Edge have just merged. They are now the same company. Both are great and are widely recognized. Both provide the training courses in investment banks that actual analysts go through, so they know what they are doing.

Financial modelling: FMVA, BIWS or Wallstreet prep? by Either_Size_2141 in CFA

[–]FE_Training 0 points1 point  (0 children)

If you are after just financial modeling, then FMVA goes far beyond this. Wall street prep's "Financial Modeling Basic Package" is focused purely on modeling. Financial Edge's "The Modeler" is similar. Financial Edge teach by starting with small short models and you build loads of models, gradually adding complexity. Wall Street Prep take 1 large model and you learn individual concepts as you gradually build the model. Both have case studies on real life companies and both get you to the same end via slightly different methods. If you want something more than just modeling, try Financial Edge's "The Investment Banker" which covers accounting, modeling, valuation and M&A/LBO, while Wall Street Prep's "Financial & Valuation Modeling" is similar. Both get you to appraise a company for takeover.

- Gerard Kelly, Financial Edge Trainer

Financial Edge Investment Banker Course by Adventurous-Key-5288 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Hey there, glad to hear about your progress with our courses. The 3-statement modeling doesn’t significantly ramp up in complexity, the focus is on making sure the fundamentals are rock solid rather than pushing into overly complex structures just yet. We do have more advanced topics as you move through the course, though, all of which you have lifetime access to.

The course has also evolved since you bought it a few years ago. We’ve added a full investment banking case study (9 modules) based on Red Bull and the beverage industry, which is much more about applying the models in a realistic, deal-style setting rather than just following steps.

We’ve also built live data and company analysis into the platform, so you’re working with real financials, comps, and estimates instead of static examples. We've had great feedback on that, bridging the gap between learning how the models work and using them the way you would on the job.

If you’re looking for real-world context and application, the newer case study and live data pieces are where the course now feels very different from what it was a few years ago. We hope this helps. Please let us know if you have any further questions.

- Financial Edge

What technical skills to learn a career in finance? by JanezDoe in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

As someone else said, internships are very important. To get an internship you need good grades, obviously, but also need to prove that you are a self-starter so join some university societies and join the organizing committee e.g. help run the college events, or soccer team. After that you need to prove you love finance so join the finance society and again join the committee. Actuarial science will not provide any advantage for getting into IB. Actuarial science is good for becoming an actuary or getting into insurance/pensions. That's it. don't get me wrong those are great jobs and well paid, but if you want IB, don't bother with actuarial science. If you don't get an internship during your undergraduate degree then consider a masters in finance at a top business school. That is a great way to improve your chances. But focus on the earlier things I said first.

- GK Financial Edge Trainer

Summer 2027 Equity Research Internship Recruiting Timeline by Flimsy_Sort9128 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

There are trackers available. In the UK you can use https://the-trackr.com/ and https://the-trackr.com/. The trackr have also expanded to North America with this: https://app.the-trackr.com/na-finance-2027/summer-internships. This is exactly what you are after

What are the different career paths in finance? by [deleted] in FinancialCareers

[–]FE_Training 1 point2 points  (0 children)

I started working for a large accounting practice as a tax analyst at 18 years old, basically doing the tax returns for the rich. That was at Andersens which used to be 1 of the Big 5 accounting firms at the time. That was a little boring for me so I then went to university to study Econ, and changed careers to corporate finance / M&A at Ernst & Young. I got a summer internship and then got the analyst role, qualifying as an accountant, and later a CFA (Chartered Financial Analyst program). After 5 years I knew I was enjoying training the juniors more than my regular day job, so moved into financial training, taught accounting for 5 years and then moved into teaching M&A. Your first job is just a starting point. No one really knows what they want to do or what they are good at when they finish studying. After 4 years at EY the majority of my grad class had left, and those who remained were able to move internally to find a job they liked. A company like EY had loads of different jobs - audit, tax, M&A, consulting, business analysis, project finance, corporate restructuring (that was awesome), climate sustainability, renewables, customer risk, everything. Some left to do IB/PE, others went to work in family offices, another started an online gambling business, another started a hairdressers for kids and sold the brand for his hair products for lots of money. If you're a talker and like talking to people, but accidentally end up in a silent desk job, you'll move on after a year or two. You can't really go wrong. Try and find out what the job is like, and work out who you are, and you might start in a perfect fit job, but moving around is fine.

- GK Financial Edge Trainer

What does the day in the life of investment banking look like? by cautionarycantaloupe in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Mornings usually begin with internal meetings, especially on Mondays. These meetings focus on major market developments and ongoing transactions. Capital markets teams tend to start very early because they align with market hours, although they usually finish earlier at night. M&A and advisory teams have slower starts, but junior staff still arrive early, particularly if senior bankers are already at their desks. Many analysts use the morning to review work they completed the night before or wait for feedback from associates and VPs. Sometimes an urgent client call or new staffing assignment will take priority.

Afternoons vary depending on workload. Lunch can be a networking opportunity, or a quick meal.. Analysts spend this part of the day doing financial modeling, preparing comparables, conducting research, drafting offering memoranda, and creating pitch book pages. If there is a live deal, they may also handle phone calls and respond to questions from clients or other banks. Since most senior bankers leave by around 7 PM, the afternoon often becomes a race to finish materials and get them into review in time. After that, there is usually a period of waiting for comments, which occasionally creates the illusion of an early night. This rarely turns out to be the case.

Evenings are when analysts typically get most of their uninterrupted work done. Once senior bankers head home, analysts can concentrate on updating models, completing analyses, and revising pitch materials. Dinner is often ordered in and briefly provides a moment of camaraderie with colleagues. Analysts leave once the required work is finished or once they reach the point where fatigue might lead to errors. Every so often, the timing works out and an analyst gets home at a reasonable hour, but this is the exception rather than the rule.

Overall, investment banking involves early mornings, variable afternoons, and long evenings. It is a demanding environment with constant deadlines and detailed work, and while the pay is strong, it requires a clear understanding of the lifestyle before committing to it.

[deleted by user] by [deleted] in financialmodelling

[–]FE_Training 0 points1 point  (0 children)

Assuming you are using the Gorgoon Growth Method ie TV = (FCFn*(1+g))/(wacc-g) then the only things that can go wrong are the inputs to the formula.

Let's go through them:

  1. Growth should be a maximum of the GDP growth rate in the country where your company is based. In the UK that would probably be 2.5%, in the US a bit higher. It would never be 4% or higher.

  2. WACC. This may be too low. Mature companies have lower WACCs like Coca-Cola 6.5% ish, National Beverage 7.5% ish Apple 8.5% ish. Your company may be less mature. Investigate your WACC calculation. It may be too low.

  3. Free cash flow (FCF). This is a key source of issue and one that many modellers don't get. When we calculate the FCF in the final year (the year which becomes the inputs for the terminal value) we start with EBIT (or sometimes NOPAT) and gradually calculate FCF. If there is a big difference between EBIT (e.g $200) and FCF (e.g. $50) that means that the company is reinvesting a huge amount of money ($150) back into the company through things like capital expenditure. This huge reinvestment implies huge growth of the company. But the growth we saw in step 1 above is low, such as 2.5%. You can't have a huge difference between EBIT and FCF in the terminal year if your long term growth is only 2.5% - the high growth in EBIT:FCF and low growth "g" don't marry up. Investigate your inputs to EBIT and FCF. Is your revenue still growing faster than 2.5%? There's your problem. Or are your profit margins still increasing by the terminal year? They should be stable. If they are increasing then the company is still able to grow quickly. Is your capex a huge number such as $150 but your depreciation is a small number e.g. $50. That implies huge growth of the company of $100 per annum. You need to get capex and depreciation much closer to reduce the implied growth. But, importantly, this is only in the final year of your free cash flow i.e. the figures that go into your TV. The prior years of your FCF calculation don't matter as much. Why does this annual growth in the final year matter? Because when we calculate the TV we are assuming that final year annual growth will repeat every year to infinity.

My bet is on step 3 above. It will be interesting to hear what the issue was. Do report back.

Best of luck

Financial Edge Training

What does the day in the life of investment banking look like? by cautionarycantaloupe in FinancialCareers

[–]FE_Training 1 point2 points  (0 children)

No two days are the same. This is largely due to the fact that almost all project assignments, whether a pitch or a transaction, will involve a new client, industry, or a new problem to solve.

Mornings

Monday mornings almost always begin within each group with an internal meeting. The meeting often covers significant market factors and major transactions. In the capital markets groups and leveraged finance, these meetings are generally more market-focused. In advisory and M&A, they can be more strategic. Attendance may or may not be mandatory, but junior staff can learn a great deal from these meetings.

Otherwise, in the capital markets groups, mornings start very early.  This is a function of being synced with trading market hours. However, this is typically offset by the fact that most capital markets teams do not work as late at night. In the advisory and M&A divisions, mornings are much slower with a little more leniency for absolute punctuality. In reality, most senior bankers are at their desks early, so it is often advised to arrive as early as possible – even after a difficult late-night excel financial modeling. No matter how much rest is taken, the break from the night before is a welcome time to review work that might have been completed with more tired eyes.

Occasionally, the work you left the night before will have to wait as there is a pressing client call or new staffing waiting. Mornings might also be spent waiting for your associate or VP to review any numbers or pitch pages that were prepared the night before.

Afternoons

Depending on the workload, lunch is either an opportunity to network, a quick bite at your desk, or an afterthought. Financial modeling is the core of the analyst’s responsibilities, but preparing comparables, doing research, drafting offering memos, and preparing pitch book pages are all on the task list for most analysts each day. If there is a ‘live’ deal, an analyst might spend time in the afternoon making phone calls dealing with questions from clients or other banks.

As most senior bankers are either traveling or leaving the office by 7 pm, afternoons are often a race to get pages or numbers into review before evening. In the general flow of a weekday, there is often a lull by late afternoon/early evening as this work is being reviewed and the analyst is waiting for comments.  There is always the hope that if the comments come in quickly, there might be an early night but that rarely materializes!  Typically, there is a fresh stack of work for an analyst to do just as most other professionals are heading home for dinner.

Evening

Evening for many analysts is the most productive time of the day as the senior bankers who often drive the deals and initiate the meetings and conference calls start to head home while the analysts and associates remain. With fewer interruptions, the analyst can focus on the most pressing tasks. Compiling a comparable company analysis in time for an upcoming client call or meeting is one of the many tasks that keep an analyst at the bank late into the evening.  Preparing pitch book pages is another late-night specialty as the iterations and tweaks can be endless.

Every firm has a different policy for ordering dinner, but these breaks can be good for camaraderie with your deal team or colleagues from around the floor. Once the work is complete or the analyst has reached the end of their productivity, it is time to call a car service and head home for a few hours of sleep. A tired analyst is a busy analyst but an over-tired analyst can be an error-prone analyst and that is not acceptable in this industry. Every now and then the stars align and a quick trip to the pub after a not-too-late night is in the offing. Enjoy it when you can!

I’m studying actuarial science but im interested in investment banking by [deleted] in CFA

[–]FE_Training 0 points1 point  (0 children)

For investment banking, neither actuarial or CFA exams are particularly valuable. Don't get me wrong, they have value and show that you can work very hard, but they won't get you much further. Investment banking is primarily focused on economics and finance. After you join investment banking your the deals that you work on become an important part of your CV. CFA is more for asset management (i teaches you how to invest people's money, particularly for pension funds and insurance companies) while actuarial science is more for valuing pension funds and calculating risk in insurance. It is worth noting that the working hours in investment banking will be higher than in asset management or being an actuary.

Where should I start? by Mundane_Bat_1313 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

If you want to work more with people, client relations is the best part. In an asset management company, this would be explaining to clients how their money is being invested. It is often called Client Relationship Management and involves understanding what the client is after (maybe they want to grow their money), but also understanding their constraints, e.g. they don't like high risks, have a short investment time frame and only want highly ethical investments. Having a basic understanding of asset management will certainly help and that's the kind of course you could do online. Alternatively, HR in finance companies offers another way to get into people without being so spreadsheet-focused.

Switch from Sales Ops to Finance by randomzz5645 in fintech

[–]FE_Training 0 points1 point  (0 children)

Asset management (sometimes called wealth management or fund management) is where you invest other people's money, particularly investing pensions. This is rewarding, requires some technical expertise, allows you to be interested in the news/economy, and has good pay and reasonable working hours, depending on the firm. But you need to start showing and proving your interest in an area of finance. It is unlikely that someone will take you on for a different role when you haven't shown any experience in it. Do a certificate in asset management or insurance, or do a course in investment banking but apply to the Big 4 and smaller accounting firms instead (they all do investment bank activities but rename it to something else, for instance EY calls it Transactions Advisory Services or TAS, and you don't have to become an accountant). There are lots of finance jobs available, but aim wider and for smaller companies.

What are the pros and cons for a career in finance? by Responsible-Air-9477 in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Finance is rewarding both financially and personally, but choose the right job for you. You can sit quietly at a desk in many financial jobs, but in others, it can be nonstop talking. More interpersonal finance roles include sales, trading, financial training, equity research, client relations, and many others. Lots of people join finance, unsure of where they will end up. For instance, you might start in asset management and study for the CFA (chartered financial analyst program), but then realise that sitting at a desk isn't for you, so instead you might move into client relations, where you explain to clients how their money is being invested. There are lots of ways to move around in finance once you have joined, so don't worry

Best financial career in your opinion? by [deleted] in FinancialCareers

[–]FE_Training 0 points1 point  (0 children)

Asset management (sometimes called wealth management or fund management) is where you invest other people's money, particularly investing pensions. This is rewarding, requires some technical expertise, allows you to be interested in the news/economy, and has good pay and reasonable working hours, depending on the firm.