Joseph Stone Capital says that investment banking is a division of financial corporations that makes new debt and security instruments, underwrites IPO processes, provides advice on mergers or acquisitions, and helps high-net-worth individuals and banks ease high-value investments. It helps businesses build capital by raising funds from investors based on the years of status that they have built.

Investment banks are a mediator between businesses and investors, carrying all the risks and acting as a guard to both parties. 

Investment Banking Skills

Investment banking work needs a lot of financial modeling and valuation.  Whether for underwriting or M&A activities, Analysts and Associates at banks spend a lot of time in excel, building financial models and using various valuation methods to advise their clients and complete deals.

Investment banking needs the following skills:

• Business valuation – Using a wide range of valuation methods such as comparable company analysis, precedent transactions, and DCF analysis.
• Financial modeling – Performing a wide range of financial modeling activities such as discounted cash flow (DCF) models, building 3-statement models, LBO models, and other types of financial models.
• Transaction documents – Preparing documents such as a confidential information memorandum (CIM), investment teaser, term sheet, confidentiality agreement, building a data room, and much more.
• Sales and business development – Constantly meeting with potential clients to pitch them ideas, offer them support in their work, and provide value-added advice that will ultimately win new business.

Investment banks offer asset management services through which it helps clients manage their investment funds. The assets are managed using individual accounts for fixed-income stocks, stocks, derivatives, etc. One of the most essential services of these banking institutions is their advisory functions. They help clients with valuable advice related to major business dealings, especially M&A. In addition, the ones into investment banking jobs help buyers and sellers of entities intending to merge with or acquire/being acquired by businesses.

Joseph Stone Capital says that  though the field is a bit complicated and crucial, at the same time, one can build a career and be successful. The only thing required is a passion for finance and the ability to work hard and learn with experience to improve with time. Moreover, the investment bank jobs and salaries are at par with the industry. Due to this, the one joining would be emotionally and financially satisfied.