Becoming an investment banker is seen as a lucrative career path, but also intensely competitive. This article provides an overview for aspiring investment bankers on the must-read books that offer industry insights, interview preparation tips, and foundational knowledge. Key topics covered include technical skills like financial modeling, valuation, mergers & acquisitions, as well as soft skills like communication, leadership and relationship building. Books recommended include Monkey Business, Investment Banking Explained, and The Investment Banking Handbook. By reading the right books, those interested in breaking into investment banking can gain a significant edge.
Monkey Business book teaches aspiring bankers key technical skills in valuation and financial modeling
The book ‘Monkey Business’ is considered an essential guide for gaining the technical skills needed to succeed as an investment banker. It focuses on the key topics of valuation, leveraged buyouts, and financial modeling. The book uses real-world case studies and step-by-step examples to teach critical Excel modeling techniques used for M&A analysis, LBO models, comparable companies analysis, precedent transactions analysis, and discounted cash flow analysis. By working through the detailed examples and models in the book, aspiring bankers can master the technical skills necessary to valuate companies, structure deals, and assess investment opportunities. The hands-on modeling practice equips readers with capabilities expected from junior investment bankers.
Investment Banking Explained book offers comprehensive overview of industry landscape and key players
‘Investment Banking Explained’ provides an expansive look at the investment banking sector, major firms, roles, deal types, and industry trends. It explains the different product groups like M&A, equity capital markets, debt capital markets, leveraged finance and more. The book profiles top investment banks including Goldman Sachs, Morgan Stanley, JP Morgan and offers insights into their strengths. It also covers key players aside from investment banks such as private equity funds, hedge funds, corporates, sovereign wealth funds and more. The breadth of coverage in this book enables aspiring bankers to deeply understand the landscape they aim to enter, the client and partner ecosystem, as well as potential career paths.
The Investment Banking Handbook teaches soft skills like communication, leadership and relationship-building
While technical skills are critical for investment bankers, soft skills also play a pivotal role in influencing success. ‘The Investment Banking Handbook’ by Alexandra Leopold explores often overlooked topics like leadership, communication, relationship-building and more in the context of investment banking. It explains why these competencies matter greatly for client dealings, managing analyst teams, interfacing with colleagues and advancing one’s career. The book offers communication best practices for presentations and memos, as well as networking and job interview advice. By improving soft abilities along with financial modeling skills, aspiring bankers can better navigate every facet of life on the job from supporting senior bankers to contributing meaningfully to deals.
The books Monkey Business, Investment Banking Explained, and The Investment Banking Handbook collectively provide a complete foundation across technical abilities, industry landscape knowledge and soft skills for those set on breaking into investment banking careers. These are must-read guidebooks for positioning oneself for success in this competitive sector.