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IB Breakout Agenda

Career Search Process

Asking Effective Questions

IB Organization Design and Terminology

Coverage Group vs. Product Group

Roles and relationships

Resources

Open Q&A

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Career Search Process Update

Recent feedback suggest many 1st years are intimidated being a “career switcher” and by the Investment Banking recruiting gauntlet

Facts: Out of MBA2s who interned at Investment Banks:

– Only 5/30 (16.7%) had undergraduate degree in Finance and/or accounting

– Only 5/30 (16.7%) worked in Investment Banking prior to school

– Only 1/30 (3.3%) had Finance/Accounting degree and worked in Investment Banking

Recruiters come to Michigan expecting career switchers and are all prepared to give multiple offers

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Career Search Process Update

Facts (cont): Despite lack of Finance reputation, Banks love

Michigan and quality of candidates

The industry has never been hotter and desperately needs Analysts and Associates– University of Michigan has more banks recruiting this year than

ever!!

There has never been a better time to break into this industry than right now. . .

You have a higher % chance landing a Wall Street job from Michigan than any other school – period

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Career Search Process Update

Facts (cont): You can all do this job and succeed in this

process!– Christine Lawrie – Biochemist– Marshall Lai – Engineer– Sunoor Kaul – Operations, International Student – Johnny Karkouros – Military, International Student– Vishaal Rana - Consultant– Jeremy Anton – Operations– Loren Black - Evening MBA– Karan Kalahasti – Evening MBA/Engineer, International Student– Harsh Singh – Consultant– Paul Mann – Operations

If you came back to school to do Investment Banking or have an interest in Financial Services, you owe it to yourself to attend the Wall Street Forum. . .

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Asking Effective Questions

Good Questions Bad Questions

•Are appropriate for audience (MD, VP, or associate)

•Are delivered confidently and succinctly

•Build off presented material •Suggest a knowledge of the industry and firm

•Are not repetitive or argumentative

•Are detailed or personalized •Are delivered meekly, poorly or in long-winded manner

•Are not appropriate for a group setting

•Reflect ignorance of industry or firm

•Should have been asked at Finance Club meetings!!

You should actively build a list of questions in your daily research

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Examples- Good Questions

•In what areas is your firm experiencing significant growth or opportunity?

•IPO market seems quite strong. Do you expect this to continue?

•What are your expectations for M&A activity in the near term?

•How does your bank balance competing and partnering with private equity

shops?

•What has been the impact of post-Enron and Spitzer on your bank?

•How do you derive value from equity research?

•What do you think is unique about your firm versus competitors?

•“Pure” investment bank vs “universal” bank

•Talk me through your career and progression at the bank

•Why do you enjoy banking?

•Industry vs product group decision making.

•Have you been able to develop informal mentors easily?

•What do you think makes a strong associate?

•Do you have any advice for me as I move through the recruiting process?

•Firm specific: Lehman- lots of mo’, emp ownership; JP- J.Dimon, etc.

Critical to tailor your questions to bank, audience and setting

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Examples- Bad Questions

•Have you been able to maintain work-life balance?

•Are bonuses up this year? What is typical comp range?

•How are the hours? How many vacation weeks do you get?

•Does the analyst carry much of the quantitative load?

•What are the opportunities after banking?

•What are turnover rates for your associates?

•“I used to work in xxx, and did yyy, what do you think about

my prospects”

•Read about the numerous legal suits that your bank just

settled- how do you avoid that in the future?

•What is leveraged finance? What is equity capital markets?

•How is the culture of your bank? (if asked in this manner)

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Social Etiquette

Give recruiters and fellow students space

Listen to the recruiters and do not interrupt them

Listen to other students questions and build off them

Be confident, but deferential

Look the part- dressy business casual

Do not dominate the conversation

Never hand out business cards (unless directly asked)

Thank the recruiter, shake their hand and move on

Utilize fellow students to peer critique

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IB Organization Design and Terminology

Investment Banking

Industry Coverage Group Product Group

•Financial Services

•Industrials

•Technology

•Telecommunications

•Energy

•Power

•Financial Sponsors

•Health Care

•Mergers and Acquisitions

•Buy side vs. sell side

•Leveraged Finance

•LBOs

•Equity Capital Markets

•IPO/Follow-on

•Debt Capital Markets

•Staple Financing

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IB Organization Design and Terminology

Case Study: Sell-side M&A for Private Health Care Company

Case Study: Follow-on equity offering of perfume retailer

Health Care Team M&A Team

•Industry Analysis

•Offering Memorandum

•Valuation

•Purchase Agreement

•Financial Projections

•Contact potential buyers

•Process Management

Consumer Team Equity Markets

•Industry/Market Analysis

•Valuation

•Preparation of S-3

•Internal Memos

•Equity Valuation/Pricing

•Syndication

•Selling

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Other Resources

Form study groups to aid preparation- the BEST resource

Talk to second years and utilize other campus groups (i.e. MBW, ISBA, etc.)

Career websites of firms- know them cold

Utilize Finance Club Coursepack Should have read and be comfortable with sections 1 & 2 Focus on sections 3 & 4 for the upcoming week Flip through and become familiar with content

Read WetFeet and Vault guides to better understand industry, terminology and banks

Schedule OCD appointments early and often

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Open Q&A