Investment Banking

Advise companies on M&A and capital raising — the classic launchpad into finance.

Hours / week: 70–90
Entry pay: $95K–$110K
Difficulty: 5/5

Typical estimates

Your readiness

A typical analyst day

9:00 AMCheck overnight markets and deal news, flag anything relevant to active deals
10:00 AMInternal status call on an active M&A process
11:00 AMBuild or update a valuation model (DCF, trading comps) for an upcoming pitch
1:00 PMLunch at the desk while reviewing a draft pitch book
2:30 PMRevise slides based on associate/VP comments
4:00 PMDue diligence call with a client's finance team
7:00 PMDinner break (expensed on late nights)
9:00 PMContinue modeling and formatting, incorporate new rounds of comments
11:00 PM – 1:00 AMFinal proofread and send to senior bankers ahead of a morning deadline

The job, honestly

Investment banking analysts support senior bankers who advise corporate clients on mergers, acquisitions, and raising debt or equity capital. The job centers on building financial models and valuation analyses, then turning that work into pitch books and deal materials for live transactions.

Pros

Unmatched technical foundation in valuation, modeling, and deal mechanics
Strong brand name that opens doors to private equity, corporate development, and other finance roles
Direct exposure to real transactions and senior executives early in your career
Among the highest entry-level total comp in finance

Cons

Long, unpredictable hours — 70-90+ hours/week is common, more when live on a deal
Little control over your schedule; weekend and late-night work is routine
A meaningful share of the work is repetitive formatting and model-tweaking, not strategy
High-pressure, detail-obsessed culture with little room for error

Recruiting roadmap

First year
- Build your foundationComing upJAN–DECKeep your GPA strong, join a finance-related club, and start learning accounting and valuation basics.
Sophomore
- Spring Week / sophomore programsJAN–APRApply to sophomore "insight" or diversity programs at banks — a common pipeline into the following summer's internship.
- Start networking for the internshipJUN–DECBegin reaching out to alumni and bankers for informational calls. The fall of sophomore year is the key networking window before applications open.
- Summer internship recruitingNOV–MARRecruiting for the junior-summer analyst internship happens during sophomore year: a few banks open applications in November or December, and most applications and interviews run January through March.
Junior
- Summer internship

Career ladder

Analyst0-3 years · $150K–$250K
Associate3-6 years · $250K–$400K
Vice President6-9 years · $400K–$700K
Director / Senior VP9-12 years · $600K–$900K
Managing Director12+ years · $800K–$2M

Typical estimates of total pay.

Where people go next

Private EquityThe most common and sought-after exit — IB training maps directly onto LBO analysis.
Corporate DevelopmentIn-house M&A team at an operating company, often with better hours.

Skills and topics

Financial modeling (DCF
LBO
merger models)
Valuation (comps
precedents
DCF)
Pitch book / PowerPoint creation
Excel proficiency
Attention to detail under time pressure

1
Accounting Fundamentals
Lesson Practice
2
The 3 Statements
Lesson

Interview questions

Walk me through a discounted cash flow (DCF) valuation.
Project unlevered free cash flows for 5-10 years, discount them to present value using the weighted average cost of capital (WACC), add a discounted terminal value (via perpetuity growth or an exit multiple), and sum both to get enterprise value. Bridge to equity value by subtracting net debt.
Why investment banking?
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Walk me through how the three financial statements link together.
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If you had $1,000 to invest right now, what would you do with it and why?

From the Circle

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Resources

Books

Investment Banking: Valuation, LBOs, M&A, and IPOs — Rosenbaum & Pearl
Monkey Business — John Rolfe & Peter Troob

Podcasts

M&A Science
Wall Street Prep's modeling walkthroughs

Daily reading

Wall Street Journal — Markets section
A sell-side equity research note on a company you follow