e xecutive b oard president-anna mayr exec vp- sam pulitzer vp of finance- jeff williamowsky vp of...
TRANSCRIPT
Finance 101
EXECUTIVE BOARD
President-Anna Mayr Exec VP- Sam Pulitzer VP of Finance- Jeff Williamowsky VP of Administration- Matt Captline VP of Marketing- Matt Bromiley Corporate Liaison- Josh Pupkin SUSA Rep- Paul Abel FMA Rep- Webster Hughes Webmaster- Eric Kuang
FINANCIAL CONSULTING
Advise corporations on financial issues Review business plans and decisions Suggest methods to improve valuation Assess business and capital structure Provide useful advice for
Risk management Government regulations Industry trends
Provide independent evaluation of potential options
FINANCIAL CONSULTING
Profitable industry Intense travel schedules Team-oriented environment Major firms
McKinsey Bain Boston Consulting Group Deloitte
FINANCIAL ADVISORY AKA financial planning; help clients select
appropriate assets Education: Pass the Series 7 broker/dealer exam;
possibly obtain CFP designation and/or MBA Responsibilities: Find clients and help them
understand investment opportunities; monitor markets and make quick decisions; have strong people skills and be able to sell your ideas; initially work long hours to find clients
Pay: According to BLS, as of May 2009, median compensation was $68,200; top 10% earned over $160,000; financial advisory is very strongly commission based
WEALTH MANAGEMENT Combines financial/investment advice, tax services, and
legal/estate planning; financial advisory for clients with higher net worth; often employed by banks and investment firms
Education: Pass Series 7 exam; possibly obtain CFP designation, law degree, or an MBA
Responsibilities: Find clients and provide them with personalized advice; sustain and increase clients’ wealth over time and help them plan for the future; after clients have been acquired, work as long as it takes to meet their needs
Pay: Typically between $65,000 and $85,000; once again, strongly based on commission
THE “BIG FOUR” All firms offer areas specializing in finance
PwC – Financial Consulting IPO readiness, risk & capital management, finance function
systems & applications Financial Instruments & Credit Group (FICG)
Deloitte – Financial Advisory Services Business valuation, forensic center, capital projects consulting
Ernst & Young – Advisory for Financial Services Performance improvement, risk management, capital &
transaction management
KPMG Private equity consulting, banking & finance restructuring
• Internship: 10 weeks, 40-50 hrs. per week. Limited responsibilities, but very informative
• Full Time: 50-60+ hrs. per week, specific responsibilities. Travel may be involved.
Work Load
• Internship: $23+ per hour• Full Time: Many factors influence, but median starting salary is $59,000
(2010)
Salaries
• Pre-defined track in each company. • Analyst – Consultant – Senior Consultant – Manager – Senior Manager -
Director/Partner/Principal
Career Paths
THE “BIG FOUR”
• Culture is important aspect in all companies• Intra-company clubs, community service activities• Important work/life balance through telecommuting, on-site options • Continuing education – Tuition/Certification options for all employees
Culture
THE “BIG FOUR”
Pros
• Company focus on culture and employee development
• Great starting salary
• Continuing education options
•Career path is laid out
Cons
•Long work week
• Not as much responsibility as smaller firms – client restriction
• High internal and external competition
• Geographic restrictions due to clients
SALES AND TRADING
SALES AND TRADING
Is Sales & Trading Right for You?Skills/Traits Needed:
Highly focusedExcellent quantitative skillsThrive in fast-paced, stressful
environmentAbility to multitask & prioritize.
SALES AND TRADING
Exit Opportunities Few Exit Ops outside
trading Can move up the ladder Trading at Hedge Funds
Professional Areas Sales
long term client relationships
Present investment ideas
Sell and cross sell firms products
Trading Develop and execute
trading ideas and analysis
Market Making trade execution process
INVESTMENT BANKING
Help companies raise debt or equity Advise companies
Mergers & Acquisitions Restructuring
Analyst, Associate, Director, Managing Director
Analyst Responsibilities: Presentations, Pitch books Valuation & Financial Modeling Industry/Company Research
*Investment Banking Interview Prep
http://investmentbankinginterviewprep.blogspot.com/2008/02/citigroup-profile.html
INVESTMENT BANKING CONT.
Pros Deep understanding of financial statements and
valuation Great exit opportunities (Private Equity, Hedge Fund,
etc) Experience Salary (entry level: $90K- $150K)
Cons 80-100 hrs/week Hours vary Stressful
*Investment Banking Interview Prep
http://investmentbankinginterviewprep.blogspot.com/2008/02/citigroup-profile.html
*http://www.careers-in-finance.com/ibsal.htm
INTRODUCTION TO CORPORATE FINANCE Responsibility - Corporate Finance addresses the following three
questions:o What short and long-term investments should the firm engage in?o How can the firm raise money for the required investments?o How much short-term cash flow does a company need to pay its
bills?
Early Career Path - Many firms hire undergraduates and MBAs for training programs in corporate finance; some programs are finance and accounting-specific, and others rotate trainees throughout the company.
Education - To advance through your career, you will eventually need an advanced degree or certification (MBA, CFA, CPA, etc.) in addition to an undergraduate degree.
Compensation - Corporate finance compensation will vary by seniority, region, size of company, and industry.o The median expected salary for a typical Entry Level Corporate
Finance Analyst in the US is $55,970, according to vault.com
CORPORATE FINANCE (CONT.) Life Style: Hours Per Week depends on seniority,
region, size of company, and industry.o Generally can be demanding for entry level
positions (anywhere from 60 to 65 hours per week)
o Jobs in corporate finance are relatively stable. o Benefits of working in the field include:
You generally work in teams which help you work with people
Responsibility is to tackle business problems that make a difference
Opportunities to travel and meet senior people in different industries
Pay is generally quite good relative to entry level positions in other industries
THE MBA
What: 2 year program Admissions based on resume, GPA, GMAT scores,
work experience & essay responses
When: 3-5+ years after Undergrad
Why: Exit Opportunities & alumni network “Reset Button”
Top schools: Harvard, University of Chicago, Wharton, Stanford,
Northwestern, Columbia, Michigan, NYU, etc.
THE BUY SIDE: PRIVATE EQUITY & HEDGE FUNDS
The Buy Side: No clients = less “fire drills” Mostly only experienced hires & MBAs• Better pay & hours (sometimes) than investment banking
Private Equity: Firm buys part or all of a company and later resells for a
profit Top firms: KKR, Blackstone, Apollo, TPG (more hours here)
Hedge Funds: Comparable to Mutual Funds but more advanced strategies
& exclusive Thousands of HFs in the US Positions: trading, risk management, quant analyst,
fundamental analyst
UPPER FINANCE COURSES
BMGT443 Equity Analysis & Portfolio Management
BMGT 444 Futures & Options Contracts BMGT 445 Banking and Financial Institutions BMGT 446 International Finance Lemma Senbet Fund
WHAT SHOULD I BE DOING NOW?
Get some sort of experience (business preferred) the summers following your freshman and sophomore year
Start reading + become familiar with the terms!
Learn about the industries…the vault guides are a good place to start
Fellows Programs
RESOURCES
Available on HireSmith (for free) Vault Guides WetFeet
Mergers & Inquisitions (also have courses) Wall St. Journal Economist Investor’s Business Daily