Ever wondered what an IB analyst really does all day?
eFinancialCareers talks to Aaron Griffin, a metals and mining analyst at J.P. Morgan in Sydney.
Why did you choose to work in investment banking?
Investment banking provides the opportunity to give advice to market-leading companies, both in Australia and overseas, on how they can improve their business. This brings with it a substantial amount of responsibility and a very steep learning curve, however that is what makes the job so rewarding.
I thoroughly enjoy learning about what drives the profitability of companies and the analysis required to give them both strategic and financial advice. Each client's business has its own individual intricacies and so every transaction you work on is unique. This means that you are constantly learning and the work is not repetitive.
J.P. Morgan has a global reputation that attracts corporate clients from around the world, ensuring steady deal-flow which is crucial for a successful career in investment banking. My team is very bright and hard-working. Given the length of time spent in the office and the high-intensity working environment, it's great to be in a close-knit team where everyone at all levels is approachable.
What type of work do you do?
I work in an industry coverage team which means that we advise corporate clients in the metals and mining sectors on a range of different transactions, including mergers and acquisitions, equity and debt capital financing.
As an analyst, my job is primarily to provide the figures that are used to support our advice. That can include valuations of whole companies, individual assets or businesses within a company, or calculating the capital a company can raise in order to expand its operations or make an acquisition.
There is also a great deal of supporting research that needs to be done in order to understand the client, the market they operate in and any proposed transaction. In addition, I assist in drafting presentations for clients and transaction-related documents.
What skills and attributes are required for your division?
You need to be very comfortable working with numbers. The skill is not merely being able to do the calculations, but understanding what the numbers mean and how they might change if the situation varies.
Investment banking often requires long working days so you need to be energetic and resilient. However, if you have a genuine interest in financial markets and corporate advisory then the hours should not be an issue.
It is important to be confident in your abilities and your opinions as you will be working with very intelligent people and for some of the most influential corporate clients both in Australia and overseas.
What other advice would you give someone wanting to become an investment banker?
I recommend that anyone considering investment banking should try to meet as many people in the industry as possible. This is important for two reasons. Firstly, because networking is a very useful tool in helping to get your foot in the door. But also because working in investment banking is a big commitment and so meeting people in the industry is the best way to find out about what the job entails and what life is really like as an investment banker.
I also suggest getting in the habit of reading the financial news regularly in order to become familiar with the market outlook, the activities of key companies and common terminology. Building your knowledge of financial markets is something that takes time, so the sooner you start, the better.
