What Does an Investment Banking Analyst Do? A Complete Guide to the Role
Learn about the day-to-day tasks, responsibilities, and role of an investment banking analyst.
For many aspiring investment bankers, becoming an investment banking analyst is the first major step toward a career on Wall Street. However, while candidates often understand that investment banking involves mergers and acquisitions, financial modeling, and high-profile transactions, many struggle to explain what an investment banking analyst actually does on a day-to-day basis.
Understanding the investment banking analyst role in detail can help you make more informed career decisions, have stronger networking conversations, and demonstrate a deeper understanding of the industry during investment banking interviews.
So, what does an investment banking analyst do?
At a high level, an investment banking analyst supports senior bankers and the broader deal team in winning new business and executing transactions and other client projects. Analysts provide the research, financial analysis, presentation materials, and execution support that help investment banks deliver for their clients.
The specific responsibilities of an analyst will vary depending on the type of project and transaction. However, the role generally involves a combination of:
Financial modeling and valuation
Creating and editing PitchBooks
Conducting industry and company research
Supporting mergers and acquisitions (M&A) transactions
Performing due diligence
Managing and tracking deal processes
Preparing client and marketing materials
Taking detailed meeting notes
Reviewing work for accuracy and consistency
Supporting the day-to-day execution of client engagements
This guide provides a practical overview of where an analyst fits into an investment banking team and what the role can look like across business development, sell-side M&A, buy-side M&A, and public equity transactions.
Where Does an Investment Banking Analyst Fit Within the Deal Team?
To understand what an investment banking analyst does, it is helpful to first understand how an investment banking team is structured.
Investment banking is fundamentally a client services business. Investment banks are hired to help companies with major financial transactions and strategic initiatives. If a bank is not winning engagements and serving clients, there is no business.
As a result, nearly every project an investment banking team works on falls into one of two broad categories:
Winning an engagement through business development and pitching
Executing work for a client after the bank has been hired
Investment banks are paid significant fees because they provide clients with a combination of two important things:
Transaction expertise
Execution support and horsepower
Senior bankers bring years of industry knowledge, transaction experience, and relationships to the client. Analysts and associates help provide the execution support necessary to turn that expertise into completed work.
For example, a company preparing to sell its business still needs to continue operating the business. Management teams have day-to-day responsibilities and often do not have the time or capacity to manage every detail of a transaction process themselves.
The investment banking team helps manage that work.
The analyst plays an important role in making that happen.
The Investment Banking Hierarchy
A typical investment banking deal team may include professionals at several levels:
Managing Directors (MDs)
Directors
Vice Presidents (VPs)
Associates
Analysts
The size and structure of the team can vary. Larger transactions may involve multiple people at each level, while leaner deal teams may have fewer professionals.
Managing Directors and Directors
Managing Directors are typically senior relationship managers with significant experience in their industry or product area.
They often have extensive networks and long-standing relationships with executives, investors, private equity firms, and other industry participants. Senior bankers may spend years developing a relationship before a company eventually becomes a client.
MDs are generally responsible for developing client relationships and helping win business. They also provide senior-level guidance and oversight during the execution of transactions.
Directors often occupy a position between Vice Presidents and Managing Directors. They may have increasing business development responsibilities while still playing an active role in supervising and managing deal execution.
Vice Presidents
Vice Presidents are often heavily involved in managing the execution of transactions and the broader deal process.
They help manage client expectations, provide direction to associates and analysts, and review work products before they move further up the deal team.
A typical process may involve significant back-and-forth between the analyst, associate, VP, and Director. Analysts create the initial work product, receive feedback, make revisions, and continue refining the materials.
The goal is often to resolve as many issues as possible before the work reaches the Managing Director.
Associates
Associates play an important role in both execution and supervision.
They often work closely with analysts, reviewing work products and helping manage the detailed execution of transactions. Associates may also be responsible for guiding analysts and ensuring that projects continue moving forward.
Strong associates generally understand the analyst role and are able to perform and supervise the detailed work required to execute transactions effectively.
Investment Banking Analysts
Analysts are typically the most junior members of the traditional investment banking deal team.
As an analyst, you support the senior bankers and the broader team in winning and executing client engagements. You are often responsible for much of the detailed analysis and preparation that supports the transaction process.
This does not necessarily mean analysts are leading client relationships or providing senior strategic advice. Instead, analysts are responsible for helping ensure that the work required to support the client and execute the process is completed accurately and efficiently.
In many ways, the analyst is responsible for much of the detailed blocking and tackling that keeps a deal process moving.
What Are the Main Responsibilities of an Investment Banking Analyst?
The specific responsibilities of an investment banking analyst depend heavily on the type of engagement. An analyst working on a sell-side M&A transaction may have a different day-to-day experience from an analyst supporting a buy-side acquisition or public equity offering. However, several core responsibilities appear across many investment banking projects.
Financial Modeling
Financial modeling is one of the most recognizable investment banking analyst responsibilities.
Analysts may build financial models to:
Forecast a company's future financial performance
Analyze potential acquisitions
Evaluate mergers between companies
Estimate the value of a business
Support valuation discussions
Analyze transaction outcomes
Depending on the engagement, an analyst may work with operating models, valuation models, merger models, discounted cash flow (DCF) analyses, comparable company analyses, or precedent transaction analyses.
However, there is an important misconception to avoid: investment banking analysts do not necessarily spend every day building financial models. Financial modeling is an important part of the role, but analysts also spend substantial amounts of time conducting research, preparing presentations, managing processes, and supporting deal execution.
Preparing for Investment Banking?
Financial modeling is one of the core technical skills used across investment banking. Learn more about Adventis' Financial Modeling Certification® Program and develop practical financial modeling skills.
Research
Research is another major part of the investment banking analyst role.
Analysts may be expected to research:
Companies
Industries
Competitors
Potential buyers
Potential acquisition targets
Private equity firms
Market trends
Transaction activity
This research may involve publicly available information as well as paid financial databases and proprietary resources.
Strong analysts need to be able to find relevant information efficiently and determine what matters to the specific project they are working on. In practice, analysts are often expected to go deeper and farther in their research than others to uncover information that can add value to the deal team.
Creating PitchBooks and Presentation Materials
Investment bankers rely heavily on PowerPoint to communicate information to clients and potential clients.
Analysts may spend significant time creating, editing, and reviewing:
PitchBooks
Client presentations
Marketing materials
Management presentations
Buyer materials
Client update materials
Transaction presentations
The process often involves multiple rounds of revisions. An analyst may create an initial version of a presentation, receive comments from an associate or VP, revise the materials, and repeat the process several times. Technical accuracy is critical.
Analysts are expected to ensure that:
Numbers are correct
Data is consistent across materials
Calculations are accurate
Slides are properly formatted
Logos and other visual elements are correct
There are no typographical errors
Information is presented cohesively
Every number should be carefully checked. For example, if two slides are intended to communicate the same financial metric, the numbers should match. Small inconsistencies can undermine confidence in the materials.
Meeting Preparation and Note Taking
Investment banking analysts may also support meetings between senior bankers and clients or potential clients.
Responsibilities can include:
Preparing meeting materials
Coordinating logistics
Sending calendar invitations
Preparing participant information
Taking detailed notes
Documenting next steps
Analysts are often responsible for capturing the important points from conversations and translating those discussions into clear action items and deliverables. Effective note taking is more valuable than simply writing down everything that was said. The goal is to capture the key information, decisions, and next steps in a way that allows the deal team to act on the conversation.
Process Management and Deal Execution
Investment banking involves a significant amount of process management.
Analysts may be responsible for maintaining trackers related to:
Potential buyers
Acquisition targets
Due diligence questions
Bidding processes
Non-disclosure agreements (NDAs)
Client requests
Transaction timelines
These responsibilities may seem less glamorous than financial modeling, but they are critical to the execution of a transaction. A large deal process can involve numerous participants, deadlines, documents, and requests. Analysts help ensure that information is organized and that the broader deal team can continue moving efficiently.
Investment Banking Analyst Responsibilities in Business Development
Before an investment bank can execute a transaction, it first needs to win the engagement.This is where business development, often referred to as pitching, becomes important.
Investment banks may engage in informal business development through long-term relationship building or participate in formal processes where potential clients invite multiple banks to pitch for an engagement.
As an analyst, you may support business development by helping create a PitchBook.
What Does an Analyst Do on a Pitch?
A typical analyst may be responsible for:
Building financial analyses
Conducting company and industry research
Taking detailed notes from client conversations
Supporting PitchBook creation
Incorporating comments and revisions
Performing technical reviews
Checking numbers for accuracy and consistency
Preparing and organizing materials
Supporting meeting logistics
Financial analysis may involve examining a potential transaction, evaluating the potential value of a business, or analyzing what a combination between two companies could look like. Research may involve reviewing public information, industry reports, company filings, financial databases, and other relevant sources. The analyst may also be responsible for ensuring that the final PitchBook is technically accurate and professionally presented.
What Does an Investment Banking Analyst Do on a Sell-Side M&A Transaction?
A sell-side transaction occurs when an investment bank represents the owner of a business that is looking to sell. The investment bank helps take the company to market and manage the process of finding and negotiating with potential buyers. Sell-side M&A is a major part of investment banking, and analysts can play an important role throughout the process.
Preparing for the Engagement
A sell-side transaction often begins with a kickoff meeting. During this stage, the investment banking team works to understand the company, its management team, financial performance, strategy, and objectives.
An analyst may be responsible for:
Preparing materials for the kickoff meeting
Taking detailed notes
Reviewing company financial information
Beginning financial analysis
Developing initial buyer lists
Conducting industry and competitor research
The client may provide the investment bank with an existing financial model. In some cases, the model may be in strong condition. In others, the investment banking team may need to significantly revise or rebuild it.
Building the Financial Analysis
Analysts may build or update an operating model to better understand the company's financial performance. They may also create valuation analyses or other transaction-related analyses.
While valuation is important to the overall transaction, the goal of a sell-side process is generally to allow potential buyers to determine how they value the business. The investment bank's earlier valuation work may be particularly important during the pitch process, when the bank is explaining its perspective on the potential value of the company.
Creating Sell-Side Marketing Materials
Investment banking analysts may help create several different types of marketing materials during a sell-side process.
Teaser
A teaser is a short overview of a business designed to generate interest among potential buyers. The company may be presented anonymously, particularly during the early stages of a process. The teaser typically provides high-level information about the company and its financial performance.
Confidential Information Memorandum (CIM)
A Confidential Information Memorandum, commonly referred to as a CIM, provides a much more detailed overview of the business.
A CIM may cover:
The company's products and services
Industry dynamics
Financial performance
Growth opportunities
Competitive positioning
Reasons the business may be attractive to a potential buyer
These materials can be extensive and may take significant time to develop.
Management Presentation
A management presentation helps facilitate more detailed conversations between the company's management team and potential buyers. Analysts may support the preparation and revision of these materials and help incorporate feedback from the broader deal team.
Supporting Due Diligence
Due diligence can become a major part of an analyst's responsibilities during a sell-side transaction.
Potential buyers may submit extensive lists of questions and requests for information. The analyst may help:
Track buyer questions
Determine whether requested information is already available
Prepare requests for additional client information
Organize documents
Help maintain the virtual data room
Track responses and outstanding items
A virtual data room is a secure online system used to organize documents and information related to the transaction. Over the course of a process, the data room may grow significantly as additional questions are asked and new information is provided.
Managing the Broader Process
Sell-side analysts may also support the day-to-day administration of the transaction.
This can include:
Maintaining buyer trackers
Coordinating NDAs
Tracking buyer responses
Monitoring the bidding process
Preparing meeting materials
Creating management profiles
Supporting client communications
The analyst's work can vary from highly analytical tasks to detailed administrative responsibilities. Ultimately, the analyst supports whatever work is necessary to keep the transaction moving forward.
What Does an Investment Banking Analyst Do on a Buy-Side Transaction?
On a buy-side transaction, the investment bank represents a client that is looking to acquire another company. Buy-side engagements can be highly dynamic. The client may already have a specific target in mind, or the investment bank may be asked to help identify potential acquisition targets. The client may also be participating in a formal sale process run by another investment bank.
Identifying Acquisition Targets
If the client has not identified a specific target, an analyst may help develop a list of potential acquisition candidates.
This may involve screening companies using financial databases and other resources based on criteria provided by the senior bankers and client.
The analyst may then help evaluate potential targets by examining:
Financial performance
Growth prospects
Profit margins
Valuation
Strategic fit
Financial Modeling and Valuation
Analysts may build financial models to better understand potential acquisition targets.
This work may include:
Operating models
Valuation analyses
Comparable company analyses
Precedent transaction analyses
DCF analyses
Merger models
The goal is to help the client develop an informed perspective on the potential transaction.
Reviewing Sell-Side Materials and Conducting Due Diligence
On a buy-side transaction, the analyst is often reviewing materials created by the sell-side adviser. The analyst may examine teasers, CIMs, and other information to better understand the target company and identify areas that require additional diligence.
The analyst may then help manage the due diligence process by:
Maintaining diligence question lists
Tracking responses
Coordinating with the client
Communicating with the sell-side adviser
Organizing information received during the process
Clients may generate many of their own diligence questions because they have specific knowledge of their industry and strategic objectives. The investment banking analyst helps organize and manage the flow of information.
Preparing Bid Materials
As a buy-side process progresses, the investment banking team may help prepare materials related to the client's potential bid.
These may include:
Indications of interest
Letters of interest
Other transaction materials
Analysts may also prepare client update materials to communicate progress and provide updates on potential acquisition targets.
What Does an Investment Banking Analyst Do on a Public Equity Transaction?
Investment banking analysts may also work on public equity transactions. These may involve companies that are:
Going public through an initial public offering (IPO)
Conducting a follow-on equity offering
Issuing additional shares
The analyst's responsibilities can vary significantly depending on the investment bank's role in the transaction. For example, the workload may be very different if the bank has a leading role in the transaction compared with a co-manager role. However, several responsibilities are common.
Conducting Due Diligence
The investment bank conducts diligence on the company issuing securities. Analysts may help investigate and better understand the company's business, operations, and financial performance. Responsibilities may include:
Developing question lists
Reviewing company information
Supporting discussions with management
Building financial analyses
Identifying areas that require additional review
Financial Modeling and Valuation
As with M&A transactions, analysts may build financial models to understand the company's operations and financial outlook. They may also help evaluate the company's potential value.
Preparing Marketing and Roadshow Materials
Analysts may support the development of materials used to help potential investors understand the company. These can include:
Marketing materials
Teasers
Roadshow presentations
The company is selling shares rather than the entire business, so the materials and process differ from a traditional M&A sale process.
Supporting Documentation and Review
Public equity transactions can also involve extensive documentation and review. Analysts may work alongside senior bankers and other professionals as materials are reviewed and refined. Depending on the transaction, this may involve detailed review of documents and supporting information.
What Is the Day-to-Day Life of an Investment Banking Analyst Like?
There is no single "typical day" for every investment banking analyst. Your responsibilities will depend on:
The type of transaction
The stage of the transaction
The size of the deal team
The role of your investment bank
The number of projects you are staffed on
The urgency of client requests
An analyst may be working on several projects at the same time. For example, an analyst could be supporting a sell-side transaction while also helping prepare a PitchBook for a potential client and conducting research for another engagement. When multiple projects become particularly active at the same time, the workload can increase significantly.
A day may involve moving between:
Excel
PowerPoint
Financial databases
Research
Internal meetings
Client requests
Due diligence trackers
Document reviews
The work is often fast-moving and detail-oriented.
What Skills Does an Investment Banking Analyst Need?
While the specific work changes from project to project, several skills are consistently important.
Financial Modeling
Analysts need to understand how to build and work with financial models. The Financial Modeling Certification® (FMC®) Program is designed to help students develop practical financial modeling skills that are relevant to careers in finance, including investment banking. However, financial modeling is only one part of the job.
Excel
Investment banking analysts spend significant time working with financial information and models. Strong Excel skills can help analysts work more efficiently and accurately. Efficiency matters, particularly when analysts are working through multiple revisions and tight deadlines.
PowerPoint
PowerPoint is another important part of the investment banking analyst toolkit. Analysts are frequently responsible for creating and revising presentations. Developing efficiency with PowerPoint shortcuts and formatting can be just as valuable as developing efficiency with Excel shortcuts.
Research Skills
Analysts need to know how to find information quickly and determine what is relevant. This requires the ability to:
Search effectively
Review large amounts of information
Identify important details
Summarize findings clearly
Support conclusions with relevant information
Attention to Detail
Investment banking analysts are expected to review their work carefully. Small errors can create significant problems when client materials are being reviewed by senior bankers. Analysts need to consistently check:
Numbers
Formulas
Formatting
Labels
Dates
Sources
Consistency between documents
The ability to produce accurate work consistently is a fundamental part of the role.
Organization and Version Control
Investment banking involves large volumes of files, data, and revisions. Analysts need to stay organized and manage version control carefully. It is important to understand:
Which version of a document is current
Where important files are stored
How to maintain backups
How to avoid losing work or working from outdated information
Ability to Execute
Perhaps most importantly, investment banking analysts need to execute. The role requires analysts to take direction, work through detailed tasks, respond to feedback, and deliver accurate work products. Analysts are not typically hired to lead the client relationship on day one. They are hired to support the deal team and help ensure that the work required to serve the client gets done.
What Investment Banking Analysts Wish They Knew Before Day One
One of the biggest misconceptions about investment banking is that analysts spend all of their time building complex financial models. Financial modeling is an important skill, and analysts will likely build models across many different types of engagements. However, much of the role involves other forms of execution.
As an analyst, you may spend substantial time:
Researching companies and industries
Updating presentations
Responding to comments
Managing trackers
Supporting due diligence
Checking numbers
Organizing information
Preparing materials
Managing details of a transaction process
The work can range from highly analytical to highly detailed. An analyst may be asked to complete work that seems routine or administrative alongside more complex financial analysis. That is part of the role. The investment bank is being hired to provide both expertise and execution support. Analysts play an important role in providing that support.
The Bottom Line: What Does an Investment Banking Analyst Do?
An investment banking analyst supports the broader deal team in winning and executing client engagements.
The exact responsibilities depend on the type of transaction, but analysts commonly work on financial modeling, research, PitchBooks, due diligence, presentation materials, process management, and other aspects of deal execution.
On a typical engagement, the analyst is responsible for much of the detailed work that allows senior bankers to manage client relationships and provide strategic guidance. You may not build a financial model every day. You may spend just as much time researching a company, revising a presentation, tracking diligence questions, or checking a document for accuracy.
The common thread is execution. Investment banking analysts help transform senior-level strategy and client direction into detailed analysis, materials, and processes that move a transaction forward.
For aspiring investment bankers, understanding this reality is valuable long before your first day on the job. The more clearly you understand what analysts actually do, the better prepared you can be to:
Have meaningful networking conversations
Ask stronger questions
Prepare for investment banking interviews
Develop relevant technical skills
Understand what the investment banking career path may look like
A strong answer to the question, "What does an investment banking analyst do?" goes beyond simply saying that analysts "work on deals" or "help clients." Investment banking analysts provide the detailed analysis and execution support that helps their teams win business, serve clients, and move complex transactions toward completion.
