Investment Banker Responsibilities

The individuals who find themselves comfortable in the work which needs crunching complex numerical data and have good analyzing skills with the flexibility to work for long hours can easily make a career in investment banking. The investment banker responsibilities are varied in nature and primarily focus on raising capital for the business organization and advising the clients on how to generate more business. This can be achieved only through proper research work and requires adequate educational background to support it. For more details, you can go through the following details that will provide a detailed explanation on the duties, skills, and academic grounding necessary to make it a huge success.

Key Responsibilities of an Investment Banker

The investment banker plays a crucial role in advising the clients to achieve their short term and long term financial objectives. He/she performs valuation analyses using various techniques that include discounted cash flow, trading and transaction comparables, etc., and building the financial models that will evaluate the performance in various operational scenarios. He/she also helps in analyzing the effects of different capital structures and the prospective merger and acquisition transaction. Some of the points mentioned below will help you in giving a clear cut idea as to what exactly are the basic duties and responsibilities that need to be carried out by an investment banker:

  1. To work in close association with the clients and advise them on how to meet or surpass the financial targets and create investment capital
  2. To generate finance from various resources and to use financial models to predict the future trends and the financial risks that would be involved in it
  3. To gather, analyze, and interpret the complex numerical data and information and provide advice and recommendations based on it by suggesting various tactics to reduce loss and earn more profit
  4. To prepare all the legal documentation that may be relevant to the job and to liaise with lawyers, accountants, and financial expertise and other related regulatory bodies
  5. To provide ideas that would help in generating more revenue for the organization
  6. To be involved in research work, help in processing of various deals and implement strategies that would help in business development

Thus, the investment banker represents the organization he/she is working for and helps in generating more business by raising sufficient capital. He/she assists in negotiating deals that may be either from the buyer's side or the seller's side and functions in corporate restructuring. He/she may also be involved in facilitation of the private placements. He/she earns profits by using money generated from different clients and is responsible for determining where the capital should be invested so as to balance the loss against the profits. He/she may also be involved in monitoring the expenses incurred and help in the management of budget by cutting the extra expenses. Thus, he/she needs to handle a wide array of duties.

Essential Skills

To ensure success as an investment banker, the individual must be skilled in computing complex numerical data and must have a solid understanding of the financial markets. Effective communication skills are a must while interacting with the existing as well as potential clients. He/she should be able to demonstrate strong technical investment knowledge and have strong leadership as well as relation management skills. He/she must be a good listener and should be skilled at gathering the objective information. Good negotiation skills as well as the ability to inspire others would be some of the other desirable skills.

Educational Background

An educational background in accounting, finance, economics or a bachelor's degree from an accredited college or university in business administration is the most basic academic requirement, though employers may prefer to hire those with a master's degree. Educational course in math, statistics, or calculus may be preferred. Advanced degrees with relevant work experience would definitely have an edge while competing to get the desired job.

Salary Details

Those who have just made an entry in this field can get a salary in the range close to $100,000, whereas those with relevant work experience can get up to $75,000. Apart from this salary, he/she may receive additional bonus.

Career Prospects

There are numerous developmental and growth opportunities for the individuals who have advanced degree and have a successful track record that demonstrates their skills and abilities that will assist them in creating a strong foundation in the financial sector.

Therefore, an individual must carry out the investment banker responsibilities effectively and efficiently in order to progress faster and take his/her career to new heights.

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