Everything you need to understand the industry, the hierarchy, the recruiting process, and what it takes to break in — from your first interest to your final-round interview.
An investment bank is an institution that provides financial advice and raises money for three main sets of clients: companies, governments, and wealthy individuals.
The Investment Banking Division (IBD) specifically advises on:
Within a larger financial institution, IBD is sometimes called corporate finance or advisory.
| Division | What They Do |
|---|---|
| Investment Banking (IBD) | Advise on transactions, raise capital |
| Sales & Trading (S&T) | Buy/sell securities, market-making |
| Sell-Side Research | Publish analysis, earnings forecasts, buy/sell recommendations |
| Asset Management | Manage investments for institutions and individuals |
| Private Banking / PWM | Advise and manage money for high-net-worth individuals |
There are also middle-office roles (risk management, treasury) and back-office roles (operations, IT). A firm with both investment banking and commercial banking is called a universal bank.
Companies merge with, acquire, or sell to other firms. Sell-side M&A represents a company that wants to sell. Buy-side M&A advises a company that wants to acquire.
A company is acquired using substantial debt to finance the purchase. The acquirers are private equity firms (financial sponsors). Investment banks advise the PE firm and help raise the debt financing.
Helping companies raise money through debt or equity. The most high-profile type is an IPO (Initial Public Offering) where a private company issues shares to public investors for the first time. Also includes follow-on offerings and private placements.
Advising distressed companies that cannot meet debt obligations. Debtor-side represents the distressed company; creditor-side represents the lenders. Mostly done by smaller, specialised boutique banks.
Before executing transactions, bankers spend enormous time pitching. Three types:
The large, full-service investment banks that advise the biggest clients across most industries globally: Goldman Sachs, Morgan Stanley, J.P. Morgan, Bank of America, Citigroup, Barclays, Deutsche Bank, UBS.
Specialise in M&A or restructuring. Compete with bulge brackets but don’t offer full-service capabilities.
Examples: Evercore, Lazard, Moelis, Perella Weinberg
Specialise in specific industries with deep knowledge and relationships.
Examples: Allen & Company (media), Qatalyst Partners (tech)
Focus on smaller deals (<$500M) and smaller clients. Many offer full-service capabilities regionally.
Examples: Jefferies, Piper Sandler, Raymond James
Large institutions with limited IB capabilities. Often co-advisers, rarely lead.
Examples: HSBC, Macquarie, Nomura, Wells Fargo
M&A, LevFin, and Restructuring are most sought-after: more modelling, more live deals, better exits — but longer hours.
The engine room of every deal — analysts do the majority of the analytical work (Excel models, PowerPoint presentations, due diligence). It is the steepest learning curve in finance: within months you will understand how companies are valued, how transactions work, and how capital markets function. Top performers may stay for a 3rd year or get promoted directly to associate. What makes a great analyst: proactivity, attention to detail, and a positive attitude.
3.5-year track before VP promotion. Associates both contribute to analytical work and review the analyst’s output. The role develops strong management and communication skills alongside deepening technical expertise. Associates get significantly more client exposure and begin shaping deal strategy.
Project manager — the bridge between senior leadership and the deal team. Most day-to-day client contact on live deals. VPs develop strong leadership and negotiation skills and often become the trusted point person for clients. Hours improve meaningfully (60-80 per week) with more control over schedule.
The most senior level — focused on client development and relationships. MDs maintain relationships with CEOs, CFOs, and board members, and get involved in high-level deal negotiations. The role is highly entrepreneurial and relationship-driven. Compensation: base €200K+, bonus highly variable and can reach seven figures at top-performing banks.
| Level | Hours/Week | Typical Schedule |
|---|---|---|
| Analyst | 80-100 | Long weekdays + some weekends. Varies significantly by deal flow and bank. |
| Associate | 70-90 | Slightly more predictable. Weekdays are long but weekends are less frequent. |
| VP | 60-80 | Much more control over schedule. |
| MD | More normal | 7-9am to 6-7pm when in office, but travel ~3/5 days. |
| Level | Base | Bonus | Total |
|---|---|---|---|
| 1st Year Analyst | €45–55K | €10–25K | €55–80K |
| 2nd Year Analyst | €50–60K | €15–30K | €65–90K |
| 3rd Year Analyst | €55–65K | €20–40K | €75–105K |
| 1st Year Associate | €70–90K | €20–40K | €90–130K |
| VP | €100–140K | Variable | €130–220K |
| Director / SVP | €130–180K | Variable | €180–350K+ |
| MD | €200K+ | Highly variable | €300K–1M+ |
| Exit | Who | Notes |
|---|---|---|
| Private Equity | Primarily analysts | The classic path: 2yr analyst → 2yr PE associate → MBA → back to PE |
| Hedge Funds | Analysts, some associates | Long/short equity, activist, distressed, merger arbitrage |
| Corporate Development | Analysts and associates | Strategy/M&A roles at operating companies |
| Business School (MBA) | Analysts | Some go then return, but most don’t come back to IB |
| Entrepreneurship | Analysts, some associates | Start a business or join family business |
| Stay in banking | Top analysts | Promoted to associate — increasingly common |
Bulge brackets recruit at ~10-15 universities. Highly formalised: receptions → networking → first-round interviews (on campus) → Super Days (at the bank). It is a game that follows set rules — play it well and you get offers.
Cast a wide net (consider boutiques). Networking is everything — online applications alone will get you nowhere. Find alumni at target banks, attend receptions at nearby target schools. Once at Super Days, you’re on equal footing.
Much less formalised, more difficult. Easier to break into boutiques. Networking with bankers (not HR) is essential. Consider whether an MBA is the more realistic path.
| Statement | What It Shows | Key Items |
|---|---|---|
| Income Statement | Profitability over a period | Revenue, COGS, EBITDA, EBIT, Net Income |
| Balance Sheet | Position at a point in time | Assets = Liabilities + Equity |
| Cash Flow Statement | Cash movements over a period | Cash from Ops, Investing, Financing |
Equity Value = value to shareholders = Share Price × Diluted Shares
Enterprise Value = value of the entire business = Equity Value + Net Debt + Preferred + Minority Interest
Rule: EV multiples (EV/EBITDA) pair with metrics before interest. Equity multiples (P/E) pair with metrics after interest.
Value a company by how similar public companies are currently valued. Select peers → calculate multiples → apply to target. Market-based but no two companies are identical.
Value a company by what acquirers paid for similar companies in past M&A deals. Includes control premium (20-40% typically), so usually produces higher values than comps.
Value based on present value of future free cash flows. Project UFCF (5-10 years) → calculate terminal value → discount at WACC → get Enterprise Value.
Terminal Value typically represents 60-80%+ of total EV. Two methods: Gordon Growth (perpetuity) or Exit Multiple.
After acquisition, is acquirer’s EPS higher (accretive) or lower (dilutive)?
Quick test: Compare weighted cost of acquisition to seller’s purchase yield. If cost > yield → dilutive.
Key rule for stock deals: High P/E acquirer buying low P/E target = accretive. Low P/E buying high P/E = dilutive.
Whether a deal is accretive or dilutive does NOT alone determine if it’s a good deal.
A Leveraged Buyout is the acquisition of a company using 60-80% debt. A PE firm puts in a small equity check and borrows the rest. The company’s own cash flows pay down the debt over time.
Three sources of PE returns: (1) EBITDA growth, (2) Multiple expansion, (3) Debt paydown.
Key metrics: IRR (target 20-25%+), MOIC (target 2-3x+), Debt/EBITDA (typically 4-6x at entry).
| Phase | Topic | Focus Areas |
|---|---|---|
| 1 | What is IB? | Divisions, firm types, tasks, career path, entry points |
| 2 | Fit & Motivation | Your story, STAR methodology, 5 stories, why IB/this firm/location |
| 3 | Accounting | 3 statements, how they link, classic walkthroughs |
| 4 | Valuation | EV vs Equity Value, multiples, 3 methodologies, WACC |
| 5 | Modelling | Build valuation models, project cash flows, DCF |
| 6 | M&A | Synergies, sell/buy-side process, accretion/dilution |
| 7 | LBOs | Mechanics, IRR, building LBO models, risks of leverage |
| 8 | Networking | Outreach, informational interviews, cover letters |
| Misconception | Reality |
|---|---|
| “IB is purely intellectual” | Much of the work is execution-focused. The intellectual challenge comes from understanding complex transactions and industries, but day-to-day tasks require discipline and precision more than creativity. |
| “You need to be a finance major” | Some of the best analysts come from liberal arts, engineering, or STEM backgrounds. Banks value diverse thinking — you can learn the technical skills. |
| “The smartest get hired” | Attitude, work ethic, and genuine interest matter more than raw intelligence. Banks look for people they want to work with at 1am on a deal. |
| “Work-life balance is easy” | It is genuinely demanding, especially in the first 2 years. However, banks are increasingly introducing protected weekends and lifestyle improvements. And it gets significantly better at senior levels. |
| “You’re on your own” | While formal mentoring varies by bank, the analyst class bond is strong — you’ll form lifelong professional relationships with your cohort. Many banks also now have structured mentoring programmes. |
Todo lo que necesitas saber sobre la industria, la jerarquía, el proceso de selección y cómo entrar — desde tu primer interés hasta la ronda final de entrevistas.
Un banco de inversión es una institución que proporciona asesoramiento financiero y recauda dinero para tres tipos principales de clientes: empresas, gobiernos y personas con alto patrimonio.
La División de Banca de Inversión (IBD) asesora específicamente sobre:
| División | Qué hacen |
|---|---|
| Banca de Inversión (IBD) | Asesorar en transacciones, captar capital |
| Sales & Trading (S&T) | Compraventa de valores, creación de mercado |
| Research | Análisis, previsiones de beneficios, recomendaciones |
| Gestión de Activos | Gestionar inversiones para instituciones e individuos |
| Banca Privada | Asesorar y gestionar patrimonio de grandes fortunas |
Las empresas se fusionan, adquieren o venden a otras. Sell-side M&A representa al vendedor. Buy-side M&A asesora al comprador.
Se adquiere una empresa usando deuda significativa. Los compradores son fondos de private equity. El banco asesora al fondo y ayuda a conseguir la financiación.
Ayudar a empresas a recaudar dinero mediante deuda o equity. La más conocida es la OPV (Oferta Pública de Venta / IPO).
Asesorar a empresas en dificultades financieras. Realizada principalmente por boutiques especializadas.
Los grandes bancos globales de servicio completo: Goldman Sachs, Morgan Stanley, J.P. Morgan, Bank of America, Citigroup, Barclays, Deutsche Bank, UBS.
Se especializan en M&A o reestructuración. Compiten con bulge brackets pero sin servicio completo.
Ejemplos: Evercore, Lazard, Moelis, Perella Weinberg
Se especializan en sectores específicos con conocimiento profundo y relaciones.
Ejemplos: Allen & Company (media), Qatalyst Partners (tech)
Operaciones más pequeñas (<€500M). Muchas ofrecen servicio completo a nivel regional.
Ejemplos: Jefferies, Piper Sandler, Raymond James
Grandes instituciones con capacidades IB limitadas. Suelen ser co-asesores, raramente lideran.
Ejemplos: HSBC, Macquarie, Nomura, Wells Fargo
M&A, LevFin y Reestructuración son los más demandados: más modelado, más deals, mejores salidas — pero más horas.
El motor de cada operación — los analistas realizan la mayor parte del trabajo analítico (modelos en Excel, presentaciones, due diligence). Es la curva de aprendizaje más pronunciada en finanzas: en pocos meses entenderás cómo se valoran empresas, cómo funcionan las transacciones y cómo operan los mercados de capitales. Lo que distingue a un gran analista: proactividad, atención al detalle y actitud positiva.
Trabajan junto al analista y revisan su trabajo. El rol desarrolla fuertes habilidades de gestión y comunicación además de profundizar la competencia técnica. Mayor exposición al cliente y participación en la estrategia del deal.
Gestor de proyectos — puente entre el liderazgo senior y el equipo. Principal contacto diario con el cliente en operaciones vivas. Desarrolla fuertes habilidades de liderazgo y negociación. Las horas mejoran significativamente (60-80 por semana).
Nivel más senior — enfocado en desarrollo de clientes y relaciones. Mantiene relaciones con CEOs, CFOs y miembros del consejo. Rol altamente emprendedor. Compensación: base €200K+, bonus variable que puede alcanzar cifras de siete dígitos.
| Nivel | Horas/Semana | Horario Típico |
|---|---|---|
| Analista | 80-100 | Días largos entre semana + algunos fines de semana. Varía según el flujo de deals. |
| Asociado | 70-90 | Algo más predecible. Días largos pero fines de semana menos frecuentes. |
| VP | 60-80 | Más control sobre el horario |
| MD | Más normal | 7-9am a 6-7pm, pero viaja ~3/5 días |
| Nivel | Base | Bonus | Total |
|---|---|---|---|
| Analista 1º año | €45–55K | €10–25K | €55–80K |
| Analista 2º año | €50–60K | €15–30K | €65–90K |
| Analista 3er año | €55–65K | €20–40K | €75–105K |
| Asociado 1er año | €70–90K | €20–40K | €90–130K |
| VP | €100–140K | Variable | €130–220K |
| Director / SVP | €130–180K | Variable | €180–350K+ |
| MD | €200K+ | Muy variable | €300K–1M+ |
| Salida | Quién | Notas |
|---|---|---|
| Private Equity | Principalmente analistas | El camino clásico: 2 años analista → 2 años PE → MBA → volver a PE |
| Hedge Funds | Analistas, algunos asociados | Long/short equity, activista, distressed, merger arbitrage |
| Corporate Development | Analistas y asociados | Roles de estrategia/M&A en empresas operativas |
| MBA | Analistas | Algunos vuelven, pero la mayoría no regresa a IB |
| Emprendimiento | Analistas, algunos asociados | Crear un negocio o unirse a la empresa familiar |
| Permanecer en banca | Mejores analistas | Promoción a asociado — cada vez más común |
Proceso formalizado: recepciones → networking → entrevistas primera ronda → Super Days.
El networking lo es todo. Solicitudes online solas no funcionan. Busca alumni, asiste a recepciones.
Más difícil. Considera si un MBA es el camino más realista.
EV = Equity Value + Deuda Neta + Preferentes + Minorías
Múltiplos EV se emparejan con métricas antes de intereses. Múltiplos Equity con métricas después de intereses.
Tras una adquisición, ¿el BPA del comprador sube (acretivo) o baja (dilutivo)?
Empresa con P/E alto comprando P/E bajo = acretivo. Al revés = dilutivo.
| Fase | Tema | Áreas de Enfoque |
|---|---|---|
| 1 | ¿Qué es IB? | Divisiones, tipos de firma, tareas, carrera, puntos de entrada |
| 2 | Fit y Motivación | Tu historia, STAR, 5 historias, por qué IB/este banco |
| 3 | Contabilidad | 3 estados financieros, cómo se conectan |
| 4 | Valoración | EV vs Equity Value, múltiplos, 3 metodologías |
| 5 | Modelado | Modelos de valoración, flujos de caja, DCF |
| 6 | M&A | Sinergias, proceso sell/buy-side, acreción/dilución |
| 7 | LBOs | Mecánica, IRR, modelos LBO |
| 8 | Networking | Contactos, entrevistas informativas, cover letters |