Corporate Finance

There are two primary functions of corporate finance which include M&A advisory and underwriting.  Under M&A, investment bankers negotiate the structuring of mergers and acquisitions between companies.  For example, if a company wants to buy another firm, the company will work with an investment bank to help determine how to structure the deal and establish a purchase price.  The underwriting process of investment banking involves raising capital for corporations.  Capital can be raised by selling a variety of different securities such as equity and debt. 

Corporate finance analysts and associates tend to have type-A personalities with a diligent work ethic.  They are top performers from their universities who are very ambitious, creative, and intelligent.  Corporate finance can be a challenging place to work.  A 100 hour work week is very common and once you think it's over, it's just getting started.  Weekends turn into weekdays and lack of sleep becomes the norm.  However, six-figure salaries certainly help mask the excruciating hours. 

Investment Bankers in corporate finance work in deal teams which generally consist of analysts, associates, vice presidents, and managing directors.  Analysts are at the bottom of the hierarchy and tend to work horrendous hours while spending their week on financial modeling and valuations.  Associates are hired after become newly minted MBA's.  Like analysts, they work long hours and strain over endless pitchbooks and models while becoming perfectionists in excel.  At the associate level, you begin to deal directly with clients.  However, the vice president and managing directors are considered the authentic bankers.  Vice presidents manage the analysts and associates and make sure they are spending their long evenings in their cubicles performing valuations.  VP's spend considerable portions of their time on the road building client relationships and participating in roadshows.  The managing directors are at the top of the banking ladder.  They typically specialize in certain sectors of the economy and develop relationships among executive boards with these sectors.  They frequently travel and meet with executives from their target corporations.