Investment banking is a fast-paced and demanding industry, but also a highly lucrative and prestigious career path. For those aspiring to break into investment banking, reading the right books can give you a huge leg up by helping you understand the industry, prepare for interviews, and hit the ground running as an analyst or associate. In this article, we look at some of the absolute best books to read for anyone interested in investment banking. From broad overviews of the industry to technical manuals on financial modeling, these books offer invaluable insights into the world of investment banking.
The Investment Banking Handbook provides a comprehensive industry overview
Considered by many to be the investment banking bible, The Investment Banking Handbook by Jonathan A. Knee provides an extensive overview of the industry. It examines the origins of prominent investment banks like Goldman Sachs and Morgan Stanley, the major departments like M&A and equity capital markets, and the overall workflow in an investment bank. Knee also dives into the demanding lifestyle of bankers with brutally honest descriptions. For anyone seeking to truly understand the landscape of investment banking, this book is essential reading.
How to Get a Job in Investment Banking offers practical career advice
Once you’ve decided that investment banking is your goal, How to Get a Job in Investment Banking by W. Sean Cleary offers practical, step-by-step advice on breaking in. Cleary provides specific tips on networking, resumes, cover letters, technical interviews, fit interviews, offers, and more. The book also contains over 400 practice interview questions with sample answers. It serves as an invaluable resource for anyone looking to secure that coveted full-time offer or summer internship at an investment bank.
The Business of Investment Banking explains deal processes and valuation
For a detailed look at the day-to-day activities of investment bankers, The Business of Investment Banking by K. Thomas Liaw is a great choice. The book breaks down the entire process of common deals like IPOs, follow-on offerings, and M&A, while also examining pitch books, valuation, and leveraged buyouts. The technical knowledge provided in The Business of Investment Banking ensures you’ll feel well-prepared when starting as an analyst.
Investment Banking Valuation Models provides technical valuation training
Mastering valuation and financial modeling is critical for aspiring investment bankers. Investment Banking Valuation Models by Joshua Rosenbaum and Joshua Pearl is widely considered one of the best resources for developing these technical skills. The book teaches step-by-step modeling best practices through the construction of full models for industries like technology, industrials, and commodities. For anyone looking to ace their technical interviews, Investment Banking Valuation Models is hugely valuable.
This selection represents some of the most informative books on investment banking fundamentals, career advice, deal processes, and financial modeling. Reading them will ensure you have a solid foundation of industry knowledge and technical skills before starting your investment banking career.