What is Investment Banking?

Investment banking is advisory work for major financial transactions, mainly M&A and raising capital. You help clients make high-stakes decisions and execute deals.

I love arbuses!

What you do day-to-day (on a junior level): You build and update Excel models, create PowerPoint pitch materials, run valuation analysis, perform research and due diligence, and turn work with messy inputs — often on tight deadlines.

Is it for you? If you're very ambitious and willing to work 70+ hours a week, enjoy structured problem-solving, and perform well under time pressure, investment banking can be a great fit. If you need a predictable schedule or dislike repetitive iteration on details, it is a poor match.

What does an Investment Banker do?

Despite the name, investment banking isn’t about managing investments. It is actually a client-service business that helps companies and investors execute major financial transactions. Most commonly, those are mergers and acquisitions, raising capital, and restructuring when things go wrong. If you’re choosing an investment banking career path, the fastest way to understand the job is to focus on what junior bankers actually do day-to-day: build models, create pitch materials, analyze companies, and respond to time-sensitive client requests.

Many investment banks are household names. For example, Goldman Sachs, Morgan Stanley, J.P. Morgan, Bank of America, and Deutsche Bank are known as large "bulge bracket" investment banks. There are also elite boutique banks and mid-market banks focusing on specialized sectors or smaller deals. All these firms have teams of investment bankers who drive deals and earn fees for the bank by closing transactions. Investment banking involves handling financial challenges for clients, raising hundreds of millions in new funding, or advising on the purchase of one company by another. Because of the complexity and impact of these deals, bankers need a mix of financial expertise and strategic acumen, as well as strong client skills.

One of the biggest draws of investment banking is the generous compensation packages. Banks pay high salaries to attract top talent and to make the brutal hours a bit more bearable. For all those benefits — money, prestige, experience — there are serious challenges. Work-life balance is notoriously poor, with 80 to 100 hour weeks common for analysts. The work can be extremely demanding and stressful, with frequent all-nighters and tight deadlines imposed by clients or senior bankers. The environment can feel high-pressure and even cutthroat at times: both the stakes and the competition are very high. Burnout is a real risk, and not everyone finds the rewards worth the sacrifices. Personal time, hobbies, and even sleep will take a backseat during peak periods. It’s important to go in with your eyes open. The job can be fantastic and fulfilling, but it will test your endurance and resilience.

To get career clarity before committing to investment banking, one effective approach is to experience the work directly. Finsimco’s M&A simulation lets students work through a simplified deal, while a longer investment banking simulation — available through university programs — covers end-to-end transactions from analysis and modeling to pitching and negotiation, helping students test their fit and build evidence of skills rather than just theoretical knowledge.

Investment Banking Career Ladder and Common Exit Routes

The most common exits for analysts cluster into buy-side investing roles (private equity, growth equity, hedge funds), corporate development and strategy inside companies, and MBA or further study. In a typical analyst class, it’s common to see a meaningful minority leave after the second year, with exits accelerating around the point when analysts decide between pushing for promotion or switching into a role with a more predictable lifestyle.

What is the Investment Banking Career Progression?

Throughout a career, an investment banker changes a few titles — from an analyst or intern to a managing director. For simplicity’s sake, the career path can be outlined in three broad stages: analyst, associate, and senior positions. The latter include vice president, senior vice president, and managing director. Most people choose to pivot to adjacent fields (such as private equity, hedge funds, or corporate development) before reaching a senior position, as working hours outside investment banking tend to be more predictable and some jobs hold even higher prestige.

You typically start as an analyst (doing research and lots of analytics in Excel), become an associate (managing projects and analysts), then a vice president (running deals and handling clients day-to-day), next a director or executive director (originating and executing larger deals, almost a managing director), and finally a managing director (bringing in business and leading the franchise). Title structures may vary by bank. For example, at Morgan Stanley the typical progression is analyst to associate to vice president, then executive director to managing director, whereas at Goldman Sachs it is analyst to associate to vice president, finishing with managing director and skipping the executive director entirely. Despite the differences in titles, the responsibilities at each level are broadly comparable across banks.

Each step up means more responsibility, more client interaction, and yes, more money — but slightly less direct involvement. The timeline from entry-level to managing director can be a decade or more of hard work. Those who reach the top are well-compensated and have a great deal of influence in their spheres.

Understanding this career path can help you set expectations and goals. For instance, if you’re an analyst now and thinking, "Do I want to be a managing director someday?", consider whether the managing director’s role appeals to you — it is much more sales and relationship-driven. Some people realize they love the analytical side more and might stop earlier or move to a hedge fund where analysis remains key. Others relish the idea of advising and will push on.

To assess if this specific career is right for you, you can try out internships, search for first-hand stories, or research specific tasks you would handle on the job — M&A, restructuring, and so on — and try to play them out by the book. Finsimco provides such simulations for different types of financial tasks. They serve as an interactive and very real experience, but ultimately in a safe and non-committal way, of trying out careers.

What do Investment Banking Analysts do?

Your career starts as a financial workhorse for deals: pitch books, marketing materials, valuation models, urgent requests, and emails. As a junior banker, you will know Excel shortcuts better than most people know their neighbors’ names, and you will come to understand the phrase "quick turnaround" as meaning anything between ten minutes and going home at 4:00 a.m. Analysts also do a lot of the administrative grunt work like managing due diligence trackers or coordinating internal processes. This role demands technical proficiency and huge attention to detail. Typically this position is filled by undergraduates on an internship or those with one to two years of experience in a related field. Many banks hire analysts straight from undergrad or equivalent. Some analysts join after a master’s in finance, but generally analysts are the youngest in the firm.

The long hours and competitive environment are a lot to deal with, but the compensation is remarkable. Pay varies depending on the bank, the strength of the deal year, and the group or sector. Based on Finsimco self-reported survey responses from simulation participants who later joined investment banking analyst roles, analysts in London typically report base salaries around £60,000 to £90,000, with total compensation commonly in the £100,000 to £140,000 range depending on bonuses and market conditions. These figures are pulled down slightly because the dataset includes analysts who started at smaller corporate finance boutiques, which pay materially less than bulge-bracket banks. In New York, investment banking analysts generally earn roughly $100,000 to $200,000 in total compensation, with bonuses often ranging from about 0.5 to 1.0 times base salary in stronger years.

Many banks have a program where after two to three years, an analyst can be promoted to associate (sometimes requiring an MBA, sometimes not if the analyst is a top performer, known as an "A-to-A" promotion), or the analyst leaves for other opportunities such as private equity. Some banks now offer a third-year analyst position to those who want to stay an extra year before associate promotion or departing.

Analysts need to master the fundamentals of finance: accounting, valuation, and Excel. They also need to develop great work habits — organization, responsiveness, and not overlooking details. Soft skills like communication start to develop too: even as an analyst you may occasionally speak on calls or contribute ideas, and you will certainly interact with peers and associates, so professionalism and teamwork count. Top analysts also learn to manage upwards — keeping your associate or vice president informed of your progress and flagging issues early. A strong analyst is like a reliable machine: if you produce quality work consistently and show a good attitude, you will get staffed on the best deals and earn strong recommendations.

So, what should you focus on as an aspiring analyst? First, research: an analyst spends a considerable amount of time preparing documents and models, so an ability to analyze enterprises, industries, and opportunities is indispensable. Second, financial modeling: baseline financial and technical knowledge to create assessment models is a must. Third, presentation: skills to prepare and showcase information effectively and reliably will come in handy during presentations. Fourth, soft skills: while most administrative tasks (scheduling a meeting, preparing reports, and so on) do not require specific knowledge, to complete them effectively you must hone your soft skills.

What do Investment Banking Associates do?

The next step in your career is an associate. Your workload is similar in function but considerably less in quantity, as most of the busywork will be done by analysts. You act as a bridge between the analysts and the senior bankers. Associates still do plenty of analytical work, but they delegate more basic tasks to analysts when possible. A huge part of the role is checking the analysts’ work, training and guiding them, and ensuring nothing goes out with errors. Associates also take on more client communication: you might start running parts of client calls, for instance walking through a valuation model or certain slides. You often lead internal team meetings and keep everyone on task. In meetings, associates often take notes on client feedback and then translate that into action items for analysts. Essentially, you start developing management skills — both in terms of people (your team) and process (deadlines and timelines). An associate should start thinking a bit more strategically: not just crunching numbers but asking what these numbers mean for the client’s decision, and adjusting analyses accordingly.

The hours are still long, yet they are much closer to a normal work week. An expected compensation for this position in base salary is up to $200,000 a year, and the lion’s share of the payment comes from bonuses, taking total compensation as high as $500,000 a year. You can get to this position from an MBA program in the United States, but you are far more likely to simply be promoted from analyst. This is the stage where you will have to decide if you will stay in investment banking or choose to exit. Usually around three to four years is enough to move from associate to vice president. Some might do it in three if they are exceptional; others take four or five. If you came in post-MBA, you might expect promotion around year three. Some career associates exist, but generally the up-or-out structure still applies — you need to demonstrate you can step up to vice president.

You should refine your ability to present and pitch ideas clearly. Mentoring analysts and giving them guidance is also part of your job — a good associate raises the whole team’s performance. Additionally, you still need solid technical skills, as you should be able to catch an analyst’s mistake in a model or quickly tweak an analysis on the fly. But you are also developing a banker’s judgment: what does the client really care about? What is the key driver in this deal?

In preparation for this role, you should focus on brushing up several areas. Administrative work: while mundane, the ability to administer and track team progress is a big part of an associate’s work, requiring patience and attentiveness. Documentation: just as important is organizing documents — pitchbooks, confidential information, and so on. Communication: you will attend meetings with clients at this stage, and brushing up your presenting and communication skills will do wonders. In-depth understanding of the field: banks tend to cover specific spheres, from bulge bracket to healthcare and tech. Understanding specifics — legal, cultural, economic, or otherwise — will benefit you in securing a promotion.

What do Investment Banking VPs do?

If you decide to stay in banking and climb the ladder, your next position is vice president. This is an even more managerial role, but one where you will start making deals on your own, helping senior vice presidents and managing directors. Your workload is divided between managing analysts and associates, developing relationships with clients, and supporting and overseeing the execution of ongoing deals.

While the managing director might be the one who wins the business and maintains the top client relationship, the vice president makes sure the deal actually happens. You coordinate the entire process: organizing meetings, keeping the client updated, negotiating with the counterparty’s bankers on some details, ensuring the analysts and associates are producing what is needed, and that the directors are informed. Vice presidents often handle a lot of the pitching — they go to pitch meetings with the managing director and might present substantial portions of the analysis. They also handle client questions more directly.

Vice presidents also start to develop specialization. For instance, a vice president might be the healthcare services M&A expert in the group, knowing all the industry nuances. They can speak the language of the sector, which gains credibility with clients. Vice presidents are responsible for more complex tasks like valuation negotiations — figuring out what price to advise a client to accept in a merger and subtly negotiating towards that. They also often draft important documents (with help from associates) like committee memos or fairness opinion materials. It typically takes three to four years to go from vice president to managing director. Some may never get beyond vice president if they cannot demonstrate client origination ability, as being promoted beyond vice president means the firm sees you as potential managing director material.

From here on out, the skillset of a position may vary slightly and reflect the business niche you specialize in, but soft skills reign supreme. Management: effective and humane management is crucial for a vice president, who is essentially a layer between the analysts and associates and the managing director. Communication: at this stage you are not only a presenter but someone who will lead deals and secure clients; you will require an in-depth understanding of human psychology and emotion and the ability to maneuver not only the clients but also the higher-ups. Negotiation: starting as a vice president, you will be judged on your ability to win deals more with each step of the ladder, so an ability to secure a favorable outcome becomes exponentially important. Deal structuring: the mix of skills required to make a deal go through, manage the clients, and secure a favorable fee with as few emergencies as possible is the trademark know-how of a managing director in the making, so keep up with it.

What do Investment Banking MDs do?

The pinnacle of the standard investment banking career ladder is the managing director. Managing directors are typically in their late thirties to forties when they first get the title, though some superstars may get there earlier, and some older folks may lateral in. Managing directors are the senior bankers most responsible for generating revenue. They often lead a coverage sector or a product area. There are also different levels of managing director — some very senior ones might be group heads or vice chairs. There are even higher positions above managing director, such as senior managing director or CEO, but their roles are specific to each firm with little info available.

As a managing director, your role is bringing in deals, taking care of client relationships, and high-level strategizing. A managing director’s primary job is to source business for the bank. That means maintaining relationships with CEOs, CFOs, and other top executives, understanding their strategic needs, and convincing them to hire your bank for their transactions. Managing directors spend a lot of time in meetings with clients pitching new ideas and nurturing ongoing relationships. When a deal comes up, the client hopefully calls them first. They are often the rainmakers — measured by the fees their deals generate.

When a deal is being executed, the managing director plays more of a supervisory and negotiating role. They might step in at key moments: for example, they will be the one to call the CEO of a client company to negotiate the final price of an acquisition, or to resolve a stalemate in negotiations. They also often have to coordinate with other divisions — perhaps the lending division for financing, or the sales and trading desk for placing an equity offering. Internally, managing directors fight for resources, champion deals at commitment committees, and ensure the firm’s full support behind their clients.

In some ways, managing directors have more freedom — they do not have to be in the office late churning out slides, and their weekends are better protected from grunt work. But in other ways, managing directors are always working. They have to be available to clients virtually 24/7. They travel frequently, since in-person meetings cement relationships: a managing director might have breakfast with one client, dinner with another, and fly cross-country for a board meeting in the evening. Their hours are irregular: maybe they are not pulling all-nighters, but they might be on the road half the week or taking calls at odd hours due to global clients. The stress is high because if deals do not happen, a managing director’s career can stall or they can be asked to leave — banks cut managing directors if they do not produce revenue. It can be a bit of an "eat what you kill" pressure. However, successful managing directors often have more job security and can coast a bit once they have a pipeline of steady clients.

Managing directors also have management duties within the bank: they may be responsible for mentoring directors and vice presidents, recruiting new talent, and contributing to the strategy of the investment banking division. Senior managing directors might set budgets, decide which sectors to focus on, and so on. Essentially, managing directors are the owners of the client relationships and the deals — their name is on the line if something goes wrong, and they get credit when things go right.

For a managing director, it is all about relationship management, reputation, and leadership. You need to be seen as a trusted advisor by clients — which means industry knowledge, integrity, and the ability to bring valuable ideas. The best managing directors are creative in finding deal opportunities and relentless in pursuing them. They also need to be good leaders internally, inspiring their teams to deliver excellent work, since a happy team will go the extra mile and that reflects in client outcomes. At this level, technical skills are assumed — though you might be rusty on Excel, you have teams for that. The make-or-break skills are people skills: negotiation, persuasion, networking, and even a bit of showmanship.

Not everyone makes managing director, and that is okay. Many people choose to exit before then, use their investment banking experience in other fields, or find they prefer being an investor rather than an advisor. The path is up-or-out at many points: after analyst (do you get associate promotion or leave?), after associate (can you become vice president?), and so on. Those who reach managing director are usually the ones who genuinely love the game of high finance and are very adept at it.

What Investment Banking Recruiters Care About

Investment banking interviews and assessment centres are designed to test how you think and perform under pressure, not just what you know. The table below shows the core competencies recruiters look for, how they test them, and how students can train them deliberately.

Recruiter Competency Framework (Investment Banking)

In short, recruiters are looking for signals: clear evidence that you can think, decide, and communicate like a junior banker when stakes and time pressure are real. Finsimco simulations are designed around these exact competencies. Students are observed building models, making decisions, and collaborating under realistic constraints, producing analysis similar to what recruiters look for. This provides a possibility for self-analysis and improvement before you even step into the recruiter’s office.

How to get into Investment Banking?

If you’re considering this path, honestly assess yourself on these dimensions. You don’t need to be a 10/10 on all (few are), but you should be strong in several and willing to improve in others. For example, you might be smart and very hard-working, but your communication skills are not great — you will need to work on that to successfully get through the interviews.

The tried and true method to break into investment banking is to attend a top university (Russell Group, Ivy League, etc.), win summer internships very early, and then apply for a job after graduating. Graduates of top MBA programs have a decent possibility of winning an offer, too.

Breaking into investment banking is highly competitive, but it’s certainly achievable with the right approach. In this section, we’ll cover the typical pathways into IB and specific advice for different scenarios — whether you’re at a target school or a non-target, an undergrad or a career changer. Key areas we’ll touch on: education, internships, networking, and strengthening your profile.

The tried-and-true method

Investment banks historically recruit heavily from “target schools,” which are universities they consider top-tier for talent (in the U.S., examples include Stanford, MIT, University of Chicago, etc.; in the UK, Oxbridge and top LSE/Imperial; across Europe and Asia, certain prestigious universities). If you’re at one of these schools, banks often come on campus for presentations, networking events, and first-round interviews. The typical timeline is:

Second year: apply for summer internships (sometimes called Summer Analyst programs). These are usually 10-week programs between school years where you essentially try out the role. Performance in a summer internship is the single most important factor for getting a full-time offer. Banks often fill the majority of full-time analyst slots from their summer intern pool. So, aim to land an IB summer internship after your junior year (or penultimate year). Some banks even offer “sophomore internships” or shorter off-cycle internships earlier — if you can get one, it helps but is not mandatory.

Internship to full-time offer: If you do well in the internship, you will probably get a return offer for after graduation. If not, you can still recruit in your final year for any open positions (less common to find spots, but still possible).

Grades and coursework: Keep your GPA strong (generally 3.5+ on a 4.0 scale is advisable for the U.S., or a 2:1 or First in the UK system). While banks aren’t purely academic, a low GPA can raise red flags about your diligence or aptitude. They also like to see relevant coursework. However, you can be any major as long as you can demonstrate the skills and interest.

If you’re at a target school, use your on-campus recruiting resources: attend bank info sessions, network with alumni who work at banks, and practice interviewing early (your school’s career center may have guides or mock interviews). The competition among target school candidates is fierce — everyone has high grades and some finance experience — so you need to stand out by either stronger leadership roles, unique internships, or exceptional networking.

How do you get into investment banking from a non-target school?

If you’re not at a traditional feeder school, don’t be discouraged — many have broken into IB from non-targets, but it requires extra hustle. These days investment banks try to broaden their recruitment fields, searching even outside of top pick universities. Here’s what you can do:

Get relevant experience elsewhere: Try to get internships in finance or related fields even if not at a bulge-bracket bank. For example, intern at a boutique investment bank, a valuation firm, a Big 4 accounting firm (in deals advisory), a corporate finance department, or even a startup’s finance team. Showing you have practical experience is key. If you can’t get IB right away, corporate finance or Big 4 Transaction Advisory can be a stepping stone — you build valuation and modeling skills there that banks appreciate.

Off-cycle internships: Unlike target school students who follow the structured summer schedule, you can pursue off-cycle internships (during the school year, winter). Smaller banks or local firms often take interns year-round. Even an unpaid internship at a small advisory firm can give you deal exposure and something to talk about in interviews.

Network, network, network: This is your lifeline. Start by finding alumni from your university who work in banking (even if your school isn’t a target, you might have some alumni in the industry — use LinkedIn). Reach out politely, express your interest, and ask for advice (perhaps a 15-minute call). Many will be willing to help if you show genuine motivation. Networking can lead to referrals, or at least someone flagging your CV in the pile. Don’t forget to network with professionals through industry events or student finance conferences. Don’t underestimate the power of a personal connection: a single alumnus advocating for you can sometimes get you an interview shot that you otherwise wouldn’t have.

Consider an MBA or Master’s: If you’re already past undergrad and trying to switch into IB, an MBA from a top business school is a common route. Banks recruit heavily from top MBA programs for associate positions. However, this practice has become less prominent in recent years. For undergrads, if you feel like you missed the window, working a couple of years in a related field then doing an MBA might reset your chance. There are also specialized Master’s in Finance programs; in this case you’ll have to get into the top ones to even the score.

Display self-initiated finance skills: Participate in financial case competitions, join a student investment club, get involved in the CFA Research Challenge or similar events. You can also take courses — there are many great options that are free. You could also start studying for the CFA. Even CFA Level 1, if you have time, signals interest and knowledge (though CFA is more for asset management). After completing a Finsimco Career Launch simulation, students can access discounts with selected CFA preparation providers as an optional next step for structured exam preparation.

Be persistent and don’t get discouraged by rejection. It’s common to send dozens of networking emails and get only a handful of responses. That’s okay — you’ll have to get used to it; keep refining your approach. Always be respectful of people’s time in networking and grateful if they help. When applying, cast a wide net: include middle-market banks, boutiques, regional offices, etc., not just Goldman and Morgan Stanley. Sometimes starting at a smaller bank and lateraling is easier than getting into a top bank straight away from a non-target.

A story to inspire: there are cases of non-target students who, unable to get junior year internships, kept networking and landed off-cycle internships after graduating, eventually converting into full-time IB offers a few months later. A notable example of an unconventional finance career is Dr. Alexander Dibelius, who originally studied medicine and worked as a heart surgeon before switching into consulting and finance. He left medicine to join McKinsey consulting and later moved into investment banking with Goldman Sachs' M&A, where he spent over 20 years. At Goldman Sachs he became CEO of the bank’s DACH operations and served in senior global investment banking roles.

What should an investment banking resume look like?

Your CV should be polished, clear, and focused on relevant skills. Use a clean, ATS-friendly format (banks prefer one-page CVs that are easy to scan). Highlight any finance experience prominently. Use action verbs and quantify achievements (“Analyzed 3 potential acquisition targets, built DCF models leading to recommendation adopted by firm”). If you did a school project valuing a company, you can include that under an “Academic Projects” section to show you know valuation. List strong GPA and test scores if good (some include SAT/GMAT if impressive). Also list relevant skills (Excel, PowerPoint, perhaps programming if applicable, any language fluencies). No typos, no formatting errors — attention to detail starts with your CV. For cover letters, keep them short and personalized: state why IB, why you, and why that bank. Honestly, many recruiters only glance at cover letters, but occasionally they do matter — especially if you have an unusual background, the cover letter can preempt questions by explaining your story and motivation.

After completing a Finsimco Career Launch simulation, students can access optional next-step resources to further refine their application materials.

How do you prepare for investment banking interviews?

IB interviews typically have two components:

Technical questions: These test your finance knowledge. You’ll be asked about valuation methods, perhaps to walk through a DCF, explain how the three financial statements connect, what happens on the financial statements if X changes, basic accounting (like what is working capital?), and maybe some brainteasers or simple math (mental math or probability). They might also ask about recent deals in the news or have you do a quick case (“How would you value a coffee shop?”). Know key formulas (enterprise value vs. equity value, WACC, CAPM, etc.) and practice clear explanations. If you claim something on your CV (like you did a valuation), be ready to discuss it in depth.

Behavioral questions: These are equally important. Banks want to see that you’re motivated, have teamwork skills, handle pressure, and have a genuine interest in finance. Common questions: “Why investment banking?”, “Why our bank?”, “Tell me about a time you worked on a team under a tight deadline,” “Give an example of a leadership experience,” “What’s your biggest weakness?”, etc. You should prepare a set of personal stories that highlight your skills: a story of you solving a problem, a story of overcoming a challenge, a story of a success you’re proud of. Use the STAR method (Situation, Task, Action, Result) to structure these.

Also, be ready for the “story of your CV” question — a 2-minute walkthrough of your background and why it led you to banking. Show passion for finance — perhaps mention how you started investing in college or enjoyed your finance classes or how an internship sealed your interest. Fit is crucial; many candidates are technically competent, so banks often decide based on whom they personally like and trust to put in front of clients at 2 a.m. So come across as enthusiastic, humble, and someone who would be pleasant to work with on a long project.

One way to prepare more effectively is to work through a realistic deal scenario rather than relying only on question banks. In the Finsimco Career Launch simulation, students work on an M&A transaction under intense time pressure, which helps them develop concrete examples they can later reference in interviews. This kind of experience often makes answers to technical and behavioral questions more grounded and also helps clarify whether the role itself is a good fit.

What are the most common investment banking interview questions?

Make sure that you can address them.

a) The first 60 seconds (almost always asked)

• “Tell me about yourself.”
• “Walk me through your resume.”

Use a simple arc: Past → Pivot → Present → Purpose. Past: 1–2 lines on what you did. Pivot: what changed your direction. Present: what you’re doing now to build skills. Purpose: why that leads to investment banking. Aim for roughly 90 seconds and end with a clear “so.”

b) Motivation and fit

• “Why investment banking?”
• “Why us?”
• “Why are you a good fit for this position?”

A strong answer links (1) what you enjoy (structured problem-solving, fast feedback, transaction work), (2) what you’ve done that reflects it (project, internship, deal analysis, simulation), and (3) why now. Keep it specific: mention one or two deal tasks you want to do, not “prestige” or “money.”

c) Behavioral questions

• “Tell me about a time you worked in a team to solve a problem.”
• “Tell me about a time you’ve acted as a leader.”
• “What has been your greatest challenge? How did you overcome it?”

Interviewers want evidence of ownership, reliability, and calm communication, especially when you’re challenged or interrupted. They look for low-risk teammates: structured thinking, accuracy, good prioritization, and coachability. Interviewers often push on details to see how you react: do you get defensive, or do you adjust calmly? The emotional signal matters.

d) Technical “core set”

• “Walk me through a DCF.”
• “How do the three financial statements connect?”
• “Enterprise value vs. equity value — what’s the difference?”
• “What is working capital, and why does it matter?”

For most IB analyst roles, you only need to know the basics. Many finance prep providers offer very detailed self-study packages, but what really matters is understanding the core concepts and the bigger picture behind them. The Finsimco IB Simulation prepares you for exactly these fundamentals.

e) Deal discussion

• “Walk me through a recent M&A deal you followed.”
• “What was the strategic rationale, and what were the key risks?”
• “What would change your view on whether it was a good deal?”

You need evidence of relevant behavior: working under deadlines, producing structured analysis, and defending decisions. That can come from finance projects, competitions, student funds, or realistic simulations. For example, the Finsimco Career Launch simulation gives you a concrete “deal-style” story you can reference in both technical and behavioral answers.

f) AI video interviews

These are getting more common. Prepare short, timed answers for the repeat questions (“Tell me about yourself,” “Why IB,” “Why this bank,” teamwork/leadership, challenge). Record yourself and tighten until you can deliver in 60–90 seconds. On video, clarity and pace matter as much as content — avoid long setups. Prioritize: (1) “walk me through your resume”, (2) the core technical set (DCF, statements, EV vs. equity, working capital), and (3) one deal you can explain. Then do timed practice with interruptions — most candidates fail on delivery, not knowledge. Use “headline first”: start with your conclusion, then 2–3 supporting points. For example: “My recommendation is X for three reasons…” This helps under time pressure and makes it easier for interviewers to follow. If you get stuck, summarize where you are and ask a clarifying question.

What do investment banking recruiters look for?

Recruiters are often less focused on whether an answer is “impressive” and more on how it feels to work with the candidate under pressure. Clear structure and accuracy reduce cognitive load for the interviewer and signal that the candidate would make senior bankers’ lives easier during busy periods. Judgment shows whether the candidate can prioritize when everything seems important. Communication and composure matter not just for clients but internally — people who stay calm, absorb feedback, and adjust without defensiveness are easier to trust. Ultimately, recruiters are asking themselves a simple question: Would I be comfortable putting this person forward, or will others think that person is not a fit? Investment banking recruiters often apply a simple scoring rubric:

How do you get your first job in investment banking?

• Secure internships: This is the easiest way to get in. Ideally you want to intern at bulge bracket firms or well-known corporate finance boutiques, but smaller firms are also fine.
• Go for the alternative route: If you don’t get an internship junior year, you can try for a full-time job directly (it is hard, but some smaller firms might hire off-cycle) or consider related fields first.
• Gain first IB experience: Recruiters value candidates who have engaged with realistic deal work — even in simulated settings — where they analyze information, make decisions, and explain their reasoning under time constraints. Finsimco simulations are designed to help students understand finance fundamentals and deal-making in practice. You can participate in the LBO simulation, IPO simulation, or Investment Banking simulation through your university.
• Practise with our Career Launch simulation: This immersive simulation places you in an M&A deal environment, helping you assess whether investment banking is the right fit while practicing interview-relevant tasks. Your performance under time pressure is evaluated, and top performers may be recommended to leading employers.
• Use cold emailing effectively: If there’s a smaller bank or group you want, a well-written cold email to a managing director or vice president outlining your interest and relevant skills can occasionally yield an opportunity. Focus on what you can offer (keen to work 100 hours a week to support the team, relevant experience, etc.), and keep it short. There is plenty of free advice on how to approach cold emailing.
• Consider geographic flexibility: It might be easier to land an IB role in a smaller financial hub (Houston for energy banking, Dublin, etc., or in Asia/Middle East if you have language skills) and then later transfer to NYC or London if desired. Once you have that IB on your CV, doors open wider.

The good news is, you don’t have to be perfect at everything. If you know you have a weakness (say, a less prestigious school), you can counter it by excelling in something else (a great internship and strong networking). Use the strategies above selectively based on what fits your situation.

By going the extra mile in preparation, networking, and skill-building, you demonstrate the kind of initiative and excellence banks want on their teams. It shows you’ll likely go the extra mile too when you’re an intern or analyst.

What does Investment Banking Work Actually Look Like?

To understand what investment banking work actually looks like, it helps to walk through a simple M&A deal. While every deal is different, most follow a similar deal process, especially in a traditional sell-side mandate.

For students, the challenge is that most recruiting advice explains what investment bankers talk about, but not how a deal actually unfolds. Understanding the full process — from pitching and valuation through due diligence and closing — makes interview answers more concrete and helps candidates judge whether the work itself is a good fit. The Finsimco M&A simulation is built around this plain-vanilla deal flow. Participants work through a simplified version of a sell-side or buy-side process, engaging with the same steps from analysis to closing. This allows students to connect interview concepts to an actual deal sequence, rather than treating them as isolated questions.

1. Origination and pitching

The process usually starts with origination, where bankers identify a potential transaction opportunity. This may be driven by a client’s strategic goals or by proactive ideas from the bank. Bankers prepare a pitch outlining the rationale for a potential sale or acquisition, including market context, valuation ranges, and possible buyers. If the client mandates the bank, the deal formally begins.

2. Valuation and preparation

Once engaged, the investment banking team conducts detailed valuation and analysis. This typically includes comparable company analysis, precedent transactions, and scenario-based valuation ranges. At the same time, bankers help the client prepare core materials and refine the transaction strategy.

Key early outputs often include:

• Initial valuation analysis
• Equity story and positioning
• Draft transaction timeline

3. Buyer list and marketing materials

In a sell-side process, bankers develop a buyer list of strategic and financial acquirers. They also prepare marketing materials, most notably the Information Memorandum (IM), which presents the business, its financials, growth drivers, and risks. Potential buyers are contacted, confidentiality agreements are signed, and the process moves into active marketing.

4. Due diligence and management presentation

Interested buyers receive access to information and conduct due diligence, reviewing financial, commercial, operational, and legal details. Bankers manage the flow of information, coordinate Q&A, and track progress. Shortlisted bidders are typically invited to a management presentation, where the company’s leadership presents the business and answers questions. This stage is critical for shaping buyer conviction.

5. Deal structuring and negotiation

As bids come in, bankers help evaluate offers not just on price, but also on deal structure, certainty, timing, and financing. This may involve negotiating purchase price mechanics, earn-outs, rollover equity, or conditionality. For buy-side processes, the focus shifts toward valuation discipline, bid strategy, and negotiation with the seller.

6. Financing and closing

If the transaction requires leverage, financing is arranged alongside the acquisition. Final legal documentation is negotiated, regulatory approvals are obtained if required, and the deal moves toward closing. At this stage, bankers coordinate across lawyers, accountants, lenders, and clients to ensure execution stays on track.

How will AI Impact Investment Banking Careers?

AI will change investment banking jobs over the next five years. Not in the way you expect, though. Dealmaking depends on trust, judgment, and personal networks. As AI frees up bankers’ time on the analytics side, the personal touch is going to become even more important, with even more client interaction and an even stronger focus on relationships.

Where AI is having the biggest impact:

• Automation of groundwork: Research, financial modelling, valuation updates, and data-heavy analysis are increasingly AI-assisted.
• Faster execution: Generative AI can produce first-draft models and pitchbooks in minutes rather than days, handling formatting, updates, and repetitive calculations.
• Smarter junior roles: Instead of spending nights tweaking Excel, junior bankers will prompt AI tools, verify outputs, and turn analysis into clear, client-ready insights.

Morgan Stanley seems to be at the forefront in embedding AI into daily workflows. Analysts use the firm’s proprietary AI, allowing staff to query and increasing document retrieval efficiency from 20 percent to 80 percent. This signals that junior-level groundwork is being compressed, while judgment, storytelling, and client trust remain firmly human.

Five years from now, an investment banking analyst’s desk may include an AI teammate handling much of the Excel work, while the analyst focuses on formulating insights and nurturing client relationships. For those entering the field, this is an exciting prospect: less mind-numbing toil and more time to learn the art of the deal. Embracing AI will be key to thriving, and the bankers who combine high-tech tools with high-touch client service are likely to close the biggest deals in the years ahead.

Frequently Asked Questions

How many hours do investment bankers work?

Long hours are the norm in investment banking. As an analyst or associate, you should expect anywhere from 70 to 100 hours per week on average. That often means late nights in the office and sometimes all-nighters when a big deal is heating up. Weekends aren’t always free either — you might be polishing a pitch on a Sunday for a Monday meeting. While technology and some cultural shifts have improved things (and some firms aim for protected weekends), the reality is that during busy deals, bankers are on call almost 24/7. It’s a demanding schedule, which is why time management, stamina, and a passion for the work are so important in this career.

What skills do you need for IB?

Investment banking requires a mix of analytical skills and soft skills. On the technical side, you need to be comfortable with finance and accounting basics, adept at financial modeling in Excel, and able to perform valuation analyses. Attention to detail is critical — senior bankers expect error-free work even at 3 a.m. Equally important are communication and teamwork skills: you’ll be working in teams and sometimes directly with clients, so you must convey ideas clearly and handle high-pressure requests professionally. Finally, work ethic and resilience are key — the job comes with steep learning curves and long hours, so grit and a positive attitude go a long way in succeeding and growing in IB.

What is a bulge bracket bank?

“Bulge bracket” refers to the world’s largest and most prestigious investment banks — typically global firms that are leaders in multiple financial services. Examples include Goldman Sachs, Morgan Stanley, J.P. Morgan, Bank of America, and Citi. These banks often appear at the top of big deals and have a worldwide presence. They offer a full range of services and usually work on the biggest, most high-profile transactions. The bulge bracket experience is associated with high deal volume, large teams, and, generally, the biggest paychecks.

Investment banking vs. corporate finance – what’s the difference?

Investment banking and corporate finance can sound similar but are quite different in practice. Investment banking typically means working for a bank that advises external clients on transactions like mergers and acquisitions or raising capital. It is client-service oriented and deal-driven: you work on projects for a few weeks or months until a transaction closes, then move to the next. Corporate finance, in the traditional sense, refers to an internal finance role within a company. In corporate finance, you focus on managing your own company’s finances — budgeting, forecasting, analyzing internal investments, and monitoring performance. The lifestyle and pace differ: investment bankers have intense, unpredictable hours tied to deals, whereas corporate finance professionals usually have more regular office hours tied to quarterly reporting cycles. The skill sets overlap, but investment bankers hone expertise in deals and advising, while corporate finance professionals develop deep knowledge of one organization’s operations and strategy.

What are exit opportunities from IB?

Investment banking is known for opening doors to many coveted careers. The most popular exit opportunities for analysts and associates are typically in the buy-side of finance — for example, private equity (investing in and acquiring companies), hedge funds (investment management with various strategies), or venture capital (investing in startups). These roles let you leverage the deal skills and financial modeling from IB, often with a focus on investing the firm’s own money. Other common exits include corporate development (doing M&A and strategy inside a company), strategy and management consulting, fintech or startups, or moving into roles like equity research or asset management. Some bankers also use their experience to get into top MBA programs, which can reset their career trajectory. Generally, after 2-3 years in IB, many take the opportunity to move to a role with better hours or a more specific investment focus — though a number also choose to stay in banking and continue up the ladder toward senior roles. It’s all about your personal career goals and what aspects of the work you enjoy most.

How do you prepare for an IB assessment center?

Assessment centers (used in Europe and some other regions for recruiting analysts) are half-day or full-day rounds where you go through various exercises — interviews, case studies, group discussions, even presentations — to test your suitability for the job. To prepare, you should practice finance fundamentals (valuation, accounting, markets) so you can handle technical interview questions or case analyses with confidence. It’s equally important to practice competency exercises: for example, work on business case studies under time limits to simulate the pressure, and rehearse delivering a short presentation or stock pitch clearly and concisely. If you expect a group exercise, team up with friends to simulate solving a problem as a group. Staying up to date on financial news can help in case you’re asked about recent deals or market trends. Consider doing a finance simulation or mock deal exercise beforehand — something like a condensed M&A project (Finsimco’s simulation, for instance) can give you talking points and calm your nerves, because you’ve been through a realistic deal scenario already. The more you familiarize yourself with the types of tasks and pressures you’ll face in the assessment, the more confident and composed you’ll be on the day.

What is the best way to practice investment banking work before recruiting?

Short of landing an internship, the best way to get a feel for IB work is to simulate it. This can be done through realistic financial simulations and virtual experience programs. For example, Finsimco’s 2-hour M&A simulation lets you run through a mock deal: you value a company, react to urgent client requests, and make decisions under time pressure, very much like a real analyst would. Completing such a simulation gives you tangible experience you can discuss in interviews and the confidence of having “done it before.” The key is to go beyond just reading guides: actually build a DCF, draft a pitch slide, or analyze a case yourself. By practicing the work in a hands-on way, you’ll improve your technical skills and be far better prepared when recruiting or when you start the job. Finsimco’s simulation in particular is designed to be an interview-grade experience, so it’s an excellent preparation tool (and top performers even get noticed by employers!). In summary, immerse yourself in any realistic finance work scenarios you can find — it will pay dividends in both your performance and your confidence.

Network, network, network: This is your lifeline. Start by finding alumni from your university who work in banking (even if your school isn’t a target, you might have some alumni in the industry — use LinkedIn). Reach out politely, express your interest, and ask for advice (perhaps a 15-minute call). Many will be willing to help if you show genuine motivation. Networking can lead to referrals, or at least someone flagging your CV in the pile. Don’t forget to network with professionals through industry events or student finance conferences. Don’t underestimate the power of a personal connection: a single alumnus advocating for you can sometimes get you an interview shot that you otherwise wouldn’t have.

Consider an MBA or Master’s: If you’re already past undergrad and trying to switch into IB, an MBA from a top business school is a common route. Banks recruit heavily from top MBA programs for associate positions. However, this practice has become less prominent in recent years. For undergrads, if you feel like you missed the window, working a couple of years in a related field then doing an MBA might reset your chance. There are also specialized Master’s in Finance programs; in this case you’ll have to get into the top ones to even the score.

Display self-initiated finance skills: Participate in financial case competitions, join a student investment club, get involved in the CFA Research Challenge or similar events. You can also take courses — there are many great options that are free. You could also start studying for the CFA. Even CFA Level 1, if you have time, signals interest and knowledge (though CFA is more for asset management). After completing a Finsimco Career Launch simulation, students can access discounts with selected CFA preparation providers as an optional next step for structured exam preparation.