With the turbulent market environment in 2023, major investment banks have tightened their recruitment of full time analysts. However, for graduates in 2024 who aspire to work as investment banking analysts, ample opportunities still exist given proper preparation. This article analyzes the core capabilities investment banks look for and suggests practical strategies to equip oneself for 2024 analyst roles.
Solid logical thinking and problem solving are necessities
Investment banks value analysts’ ability to logically break down business issues and provide data-driven solutions, which requires honing hard skills like financial modeling, valuation, accounting, and strong communication skills to present recommendations. Aside from technical abilities, analysts need intellectual curiosity, rigor and a can-do attitude to thrive in fast-paced deals and markets.
Financial modeling and valuation capabilities are must-haves
Analysts constantly build models to value companies and transactions like M&A, IPOs and bond issuances. Develop expertise in concepts like DCF, precedent transactions, LBO models and sensitivity analysis using resources like Wall Street Prep to stand out. Many banks administer technical tests so prepare thoroughly to clear this bar.
Domain expertise in industries augments client solutions
Bankers advise clients across sectors like TMT, healthcare, FIG and industrials. Develop an understanding of major players, trends and terminology for your sectors of interest through research reports, news and networking. This domain expertise, when coupled with strong financial analysis, can provide innovative solutions for clients.
Soft skills enable smooth execution and teamwork
Investment banking teams work collaboratively at a relentless pace,often with multiple workstreams and client demands. So analysts need communication skills to synthesize complex analysis into impactful presentations, manage upwards effectively and build relationships through networking. Resilience in high pressure situations also enables smooth deal execution.
Aspiring investment banking analysts in the 2024 graduation class need to build technical and soft skills as preparation. A rigorous approach in modeling, valuation and sector knowledge development along with people skills can equip students vying for these competitive roles.