What investment banks do
Investment banks help companies and governments raise money, buy and sell businesses, and manage large financial transactions. Three broad activities:
- Advisory — helping companies buy other companies (M&A) or divest divisions.
- Capital markets — helping companies raise capital by issuing equity (IPOs, follow-ons) or debt (bond issuance).
- Sales, trading and research — moving securities between investors and producing the analysis that supports the market.
The bank is a middle party. Companies and investors are the principals; the bank helps them find each other, price the transaction and execute it.
What analysts actually do
An entry-level analyst spends most of their time on:
- Building financial models — projections, valuations, sensitivity analysis
- Preparing pitchbooks — decks used in client meetings
- Doing industry research
- Coordinating diligence during live transactions
The work is detail-heavy and demanding. It rewards analytical clarity, attention to detail and stamina.
Valuation, in one paragraph
There are three main lenses used to value a business: comparable public companies, comparable transactions, and discounted cash flow. No single number is "the" answer; a range is. Skilled analysts triangulate.
Skills that matter
- Accounting and financial modelling
- Corporate finance concepts
- Industry reading and quick synthesis
- Slide-craft and written clarity
- Excel — still the workbench, still important
Where to go next
- Related program on the platform: Finance Program
- Broader: Management category