Investment Banking Bootcamp: Week 1 – How to Break InFall 2018 Xiao, Michael, Bharath, Rebecca, Ryan

I. What Is Investment Banking?

II. Recruiting Timeline for Summer 2020 Analyst Positions

III. How to Land a Boutique Sophomore Internship

IV. Networking With Bankers

V. Next Steps: What You Need to Do

Agenda

Please take notes and ask questions throughout. Decks will be available on our website.

I. What Is Investment Banking?

•Two main functions: •1. To give advice on mergers and acquisitions (most common), restructurings, leveraged buyouts•2. To raise capital through debt and equity offerings

•Examples: •Keurig Green Mountain (advised by BAML, GS and JPM) $19B acquisition Dr. Pepper Snapple Group (advised by CS)•Michael Kors (advised by GS and JPM) $1.2B acquisition of Jimmy Choo (advised by BAML and Citi)•Dropbox IPO (underwritten by Allen & Co, BAML, RBC Capital Markets)

What Do Investment Bankers Do?

❖ Bulge Brackets ▪Goldman Sachs, Morgan Stanley, J.P. Morgan, Credit Suisse, BAML, Barclays Capital, Citigroup,

UBS, Deutsche Bank

❖ Elite Boutiques▪Centerview Partners, Evercore Partners, Greenhill, Lazard, Moelis, Perella Weinberg Partners,

Allen & Co, Ducera Partners, PJT Partners, Guggenheim Partners,

❖ Middle Markets▪Houlihan Lokey, Wells Fargo, Rothschild, BMO Capital Markets, Nomura, Cowen Group, Duff

& Phelps, Harris Williams, Peter J. Solomon, Piper Jaffray, RBC Capital Markets, Royal Bank of Scotland, William Blair

Bank Breakdown: BB, EB, MM

Organizational Structure

Managing Director

Director

Vice President

Analyst

Associate

Time Spent in Position

2-3 yrs

2-3 yrs

2-3 yrs

3-4 yrs

??

Summer Analyst 10 wks, junior summer This is what you’re

aiming for!!

II. Recruiting Timeline

Summer 2020 Analyst Recruiting Timeline

(Based off of Summer 2019 Analyst Recruiting Timeline – will vary by firm & location)

Late January – March

April May - JuneFall 2019

• Participate in TIS IB Bootcamp & other events

• Practice networking at info sessions

• Build relationships with upperclassmen

• Learn foundations of technical guides

• Achieve/maintain high GPA (3.7+)

• Optional: secure spring finance internship

• Recruiting officially begins!!

• Create spreadsheet of banks and contacts

• Cold emails and info calls

• Mock interviews• TIS Mentorship and

NY/SF treks • Apply to diversity

programs

• TIS bank info sessions at USC

• Attend diversity programs

• (All locations) – diversity superdays

• Some LA/SF superdays

• => first wave of offers

• LA/SF superdays continue and wrap up by end of June

• NY non-core, non-diversity interviews begin late May/early June. Wrap up by August.

❖ Select banks that you are interested in ▪ Key decisions include location, size of bank (EB/BB), and industry/product groups

❖ Prepare for interviews: technical and behavioral ▪ Know your technicals: Accounting, Enterprise / Equity Value, Valuation Methodologies, M&A,

LBOs ▪ Stand out in your behaviorals: “why IB/story” is crucial ▪Once you get closer to interviews, mock interviews will help for final preparation

❖ Form connections with bankers ▪ Reach out to any warm leads you already have at the bank▪ Cold email any USC alums▪ Cold email any one at the bank who seems to have something in common with you

Steps in the Recruiting Process

Pre-Interviews

During Interviews❖ First round interviews can happen in person, over a video service, or over the phone

▪ First rounds are usually conducted with 1–2 interviewers▪ They include behavioral and technical questions

❖ “Superdays” are done in person, multi-hour interviews offered only to candidates bank is seriously considering; multiple interviewers, including senior bankers

III. Sophomore Internships

• 99% of the time, you need some type of finance experience (IB, PE, VC, S&T, Real Estate, Accounting) or business experience (business / corporate development, corporate strategy) prior to or during recruiting season •Why?

• Legitimizes and qualifies you as a candidate • Your “story” needs to include tangible professional experience that shows why you want

to pursue investment banking • Helps you understand your strengths, weaknesses and most of all whether or not you

actually want to pursue a career in finance

• Should you do a fall/spring finance internship?•The answer: it depends

• So does my sophomore summer internship even matter? •The answer: Yes• “Incoming summer analyst at [regional boutique]” on resume also legitimizes you as a candidate •Gain Excel and PowerPoint skills that will help you stand out in your junior internship

Prior Finance Experience: Your Sophomore Internship Matters

❖ Investment Banking Positions ▪ LA: FocalPoint, CriticalPoint, Park Lane, Siemer & Associates, Salem Partners, Cappello Group,

CREO Capital Advisors, Telos Advisors, Ocean Park Advisors, Roth Capital, Reynolds Advisory Partners, Architect, B Riley, Solganick and Co, Hammond Hanlon Camp, Harbor Ridge Capital, Harvey and Company, 41 North Partners, Kinected Consulting, Objective Capital Partners, Armory Securities, Echelon Partners, Provident Healthcare Partners▪ SF / Bay Area: Vista Point Advisors, Woodside, MergerTech, Khosla Ventures, Martin Wolf,

Momentum Partners❖ Buy-Side▪USC Investment Office, OpenGate, JUMP Investors, Carrick Capital Partners (SF), Revolution

Capital Group, Arrowroot Advisors, TPG ❖ Corporate: ▪Disney, Salesforce, SpaceX, Snapchat, The Honest Company, Northrop Grumman

❖ Other▪Big 4

❖ Diversity based internships❖Bulge bracket banks

Sophomore Internship Opportunities

Finance in LA - Regional Boutique Networking Night

Date: Monday, Nov. 5Time: 8pm

Location: TBDAttire: Business professional

*please bring several copies of your resume*

No prior finance experience is necessary for local boutiques! **Most regional boutique firms will not release an official application, so you must get an interview through networking

1. LinkedIn search any firms you are interested in

2. Find USC alumni, if any at those firms, and reach out to them 3. USC alumni and current upperclassmen will be your best points of contacts

4. If there are no alumni, cold-email analyst at the firm

Interview process (late October-early January): 1. First round phone screen (behavioral & technical) 2. Informal “superday” (behavioral & technical)

How to Land a Spring Sophomore Internship

IV. Networking With Bankers

Subject: USC Student Interested in Investment Banking Subject(2): USC Student Interested in FinanceSubject (3): USC Student Reaching Out Hi Mr. Nikias,

I am currently a (rising) freshman (sophomore) at USC interested investment banking. (Traveler) recommended that I reach out to you after I spoke with him at the information session. I would appreciate the opportunity to talk with you sometime over the next two weeks to discuss your experience as an analyst in (Lazard’s) restructuring group.

I attached my resume to this email for your consideration.

Best,

Tommy Trojan

Cold Email Example – Don’t use this verbatimExample Email (Do Not Copy)

❖ Technical/Behavioral Preparation▪Technicals – M&I Guides, IB by Rosenbaum and Pearl▪Economy/Business – WSJ, NYTimes, The Economist▪ Industry Knowledge (if applicable) – IBISWorld, Hoover’s, Mintel▪ IB Knowledge / Behavioral Prep – Mergers and Inquisitions▪Modeling Prep – Macabacus, WallStreetPrep

❖ Mock Interviews

Interview Prep

❖ Dos▪Express genuine interest and knowledge about what they do▪Talk politely and make sure to ask questions of them▪Ask about their team, including how they are staffed on deals, what their favorite deal they’ve

worked on is, and how they chose the bank they are currently at

❖ Don’ts▪Talk only about yourself▪Try to impress them with your experience▪Ask for an internship (However, you can ask about upcoming deadlines)▪Ask generic questions that you aren’t interested in▪ Seem over-eager▪Barrage them with questions, make the phone call a conversation

Communicating with BankersDos and Don’ts

Common Networking Questions❖ What is your favorite deal you have worked on so far?❖ How do you get staffed on deals? How are deal teams structured?❖ What is on the job training like?❖ When do you begin modeling and how does your responsibility for the models increase with time?❖ Know a specific deal that this firm did and ask their opinion on it. You should also have an opinion

yourself.❖ Ask their opinion on how the geopolitical climate is impacting their specific industry group (This is more

relevant for groups like Energy, Industrials)❖ What in your eyes differentiated this firm and lead you to it over others?❖ What surprised you about your first year?❖ What has been the biggest learning experience for you so far?❖ What differentiates a good analyst or intern from a great one?❖ How does the firm foster mentorship?

Stupid Questions Examples - Not an Exhaustive List

❖ What industry groups does your firm have?❖ What is the culture like? (This can be asked, but ask this subtly)❖ Are you only staying for 2 years? Are you doing PE after? Have you gone through PE recruiting?❖ What are your hours?❖ Do you like your job?

V. Your Next Steps

1. Continue attending TIS Investment Banking BootcampFuture topics include: Technical Prep – Accounting, Valuation, M&A, LBOs, Modeling

2. Attend an info session and practice networking with professionals

3. Schedule a resume workshop appointment with Marshall Career Center

4. Begin looking over M&I guides (start with accounting and DCF) and do your own research (avoid Wall Street Oasis)

What NOT to do:1. Stress out – you have lots of time and we are here to help!! ☺

Next Steps: What YOU Need To Do

Thanks so much for coming, and see you next week!