Investment banking careers in the industrials sector can be highly rewarding for those interested in advising industrial companies on strategic transactions like mergers, acquisitions, divestitures, IPOs, debt and equity financings. To build a successful career in industrials investment banking, it is crucial to gain relevant experience through internships, develop deep industry expertise, excel in financial modeling and valuation skills, and leverage networking to land top roles. The industrials sector covers diverse subsectors like aerospace, automotive, chemicals, engineering and construction, manufacturing and more, so industrials investment bankers need to be versatile while developing specialist knowledge. Gaining transaction execution experience early on and continuing education through research reports, conferences and management meetings sets one up for success in this fast-paced and dynamic sector.
Land internships in industrials groups at top banks
The best way to prepare for full-time industrials investment banking roles is to complete 1-2 summer internships in relevant industrials groups at prestigious banks like Goldman Sachs, Morgan Stanley, JPMorgan, Citi, Credit Suisse, Evercore etc. Banks recruit sophomores for diversity programs and juniors for summer analyst internships, so start applying early. Cold outreach to bankers can help land off-cycle internships. An internship allows hands-on deal experience, building relationships and learning from senior bankers. Impressing during an internship converts to full-time offers, so exceed expectations by crushing work and developing industry knowledge.
Develop deep sector expertise across diverse industrials subsectors
Industrials is a broad sector encompassing diverse subsectors like aerospace & defense, airlines, automotive, chemicals, conglomerates, construction & engineering, industrial distribution, infrastructure, machinery, packaging, waste management etc. Investment bankers need to develop deep expertise across subsectors through research reports, management meetings and conferences. Focus on understanding sector trends, competitive dynamics, business drivers, valuation methodologies and transaction case studies. While rotations allow exposure to various subsectors, it helps to develop a niche within 2-3 subsectors.
Master financial modeling, valuation and deal execution
Core investment banking skills like financial modeling, valuation (DCF, precedent transactions, trading comps) and executing transactions end-to-end are critical for success in industrials. Develop advanced Excel skills and master the use of data to build integrated 3-statement models across different subsectors. Understand various valuation methodologies and sector-specific nuances. Participate in live deals across the transaction process – pitch, due diligence, structuring and documentation, and develop these execution skills.
Leverage alumni networks into full-time roles
Networking is crucial for breaking into investment banking, as many open roles are filled through referrals. Connect with senior bankers at target firms through alumni networks from undergrad, MBA or lateral hiring channels. Ask for informational interviews to learn about firms and roles. Impress senior bankers with preparation and domain knowledge so they refer you when openings arise. Cold outreach on LinkedIn can also uncover networking opportunities. Convert connections through referrals into full-time industrials investment banking roles.
Industrials investment banking offers diverse career opportunities across subsectors. Gain relevant experience through internships, build financial and sector expertise, develop execution skills and leverage networking to land top industrials banking roles.