Career Beyond Investment Banking

Career Beyond Investment Banking & Equity Research

In order to make the career beyond the equity research career one can go for the career in the due diligence, career in the procurement and negotiation, career in the field of costing, career in the business development, a career in the Project financing, a career in the field of corporate planning, etc.

You may have often thought in your mind that “what if I could use my ability and skills to do something else other than getting trapped in only the two most popularized and hyped career choices!”

The purpose of writing this article is to answer this question that you probably asked.

Many people don’t want to go beyond their comfort zone. But few do. Because when they’re equipped with so many technical skills (financial modeling, financial analysis, valuing companies, etc.), why go for the same old-fashioned “investment bankingInvestment BankingInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read more” and “equity researchEquity ResearchEquity Research refers to the study of a business, i.e., analyzing a company's financials, performing Ratio Analysis, Financial forecasting in Excel (Financial Modeling), & exploring scenarios to make insightful BUY/HOLD/SELL stock investment recommendations. Moreover, the Equity Research Analysts discuss their findings & details in the Equity Research Reports. read more”? Why not something else?

We’re going through each career option you can take, and we will discuss the job profile, skills required, and compensation. Read on, and you may discover something you may have never considered before.

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#1 – Career in Costing

You have not thought about it yet. But have a look at the job-profile and skills required. You would see you already have the skills to tap into it and make your mark.

Cost Analysis career

Source: Salary.com

#2 – Procurement & Negotiation

Now not many of you may like negotiation. But many do. Most people think people who negotiate only act as debaters, but the fact is they’re the most brilliant and strategic minds of the world. Have a look at the profile and skills required.

  • Job profile: As mentioned above, negotiation is not a cup of tea for everyone. But if you’re interested in negotiation, the maximum opportunity is in procurement/sourcing. In professional life, we all need to negotiate sometimes. But this sort of negotiation is completely different because a small decrease in the amount of the raw materials can create havoc in competing with other competitors. So only the best and brightest sit for negotiation.
  • Skills required: You need to be very thorough in analyzing the situation quickly. Two things are required for success in this field. Firstly, you need to have an amazing presence of mind to point out any loopholes in your vendors’/buyers’ proposal. Secondly, you need to be very thorough (organized) with the cost computations, pricing quotes, financial modeling (not required always), etc.
  • Compensation: Depending on the position you have, the compensation varies. In procurement, negotiation is the major part. If your position is the procurement manager, the median salary is US $82,001 per annum.
Procurement Negotiation

source: payscale.com

#3 – Corporate Strategy & Planning

There’re people in business who need to plan for the growth of the business. They sit, think, strategize, analyze, and find out ways to implement their plans. If you’re interested in doing the same, read on.

  • Job profile: It may seem easy as people sit, think and strategize but to be able to get the approval of the board for the new growth strategy, you need to present a lot of evidence as support for whatever you’re prescribing. Let’s look at the main functions of this job profile. First, you need to do many analyses – SWOT, Competitors’ analyses, PESTEL analyses, the cost of going into a new market or creating a new product, etc. Then once you’re done with the analyses, you would be able to design a strategy via which the organization can take the leap into new territory. After designing the strategy, you need to present the strategy in front of the board of directors. You also need to show them evidence of why you’re going in this route and not any other route. If they approve, now it’s time to chunk down the whole strategy into do-able parts so that the execution becomes easier. Once chunking down is done, the responsibility of achieving these objectives are properly allocated to the departments (marketing, finance, human resource). The final step is constant monitoring or creating a feedback loop so that the implementation doesn’t get halted in between.
  • Skills required: From the job profile, you understood that it’s not for people who don’t have a passion for learning new things. Because you need to know a lot more to be able to design a useful strategy until you know how things work in business, how to find out which territory to pick, which product to drop, which cost controlCost ControlCost control is a tool used by an organization in regulating and controlling the functioning of a manufacturing concern by limiting the costs within a planned level. It begins with preparing a budget, evaluating the actual performance, and implementing the necessary actions required to rectify any discrepancies.read more measures to take, and what things to accelerate, you won’t be able to do much about planning and strategy. The future of the whole organization lies on the strategy you would make. So you can understand the responsibility. Here are the skills you need to have to design and implement corporate strategy – financial skills (without which you can’t do any analyses on your own, and you need to depend on others’ inputs), ability to understand human resources (you need to have an understanding about human capital so that the right work gets attributed to the right person while implementing the strategy), marketing and business development (business doesn’t grow in a vacuum, you need to know how to understand the preferences of customers and fulfilling them) and overall business knowledge. The good news is having knowledge in financial modeling will help you compute return on investment, IRR, and NPV of projects, how to make strategic investments, how to do a market analysis, and how to lend, borrow and think about mergers and acquisitions.
  • Compensation: It’s assumed that the compensation of corporate strategy manager would be more than six figures. The average salary of a corporate strategy manager is the US $108,199 per annum.
Corporate Strategy

source: payscale.com

#4 – Due Diligence

If you are one of those who like to investigate more about the pragmatism of anything, you’re the perfect fit for this sort of profile. Read on to know more about it.

  • Job profile: If we need to explain this profile in two words, it would be – feasibility analysis. The job profile of due diligence is primarily attached to the following functions –
  1. You need to go through the business plans and find out portions that seem unrealistic.
  2. You need to question the assumptions and expectations of business so that the organization can stand on a solid base.
  3. Lastly, but the most important is the feasibility analyses of commercial plans, strategic moves, business expansion, and business intelligence.
  • Skills required: You may ask that if this profile needs any requirement of financial modeling! The straight answer is not directly. But the truth of the matter is if you don’t know financial modeling, it would be impossible for you to make the diagnosis of whether the business plan, strategic moves, and business expansion are feasible or not.
  • Compensation: If you want to pursue a career in due diligence, you would be getting around the US $66,000 per annum on average. But you need to have thorough knowledge in due diligence to receive that range of salary.
Due Diligence career

source: payscale.com

#5 – Business Development (Bidding)

Your job as a business developer (being part of the bidding team) is to explore territories and venture into new geographies, products, tenders, etc. Read on to know how exciting this field is for professionals who know financial modeling.

bid manager career

source: salary.com

#6 – Corporate Finance & Project Finance

This is the traditional corporate finance and project financeProject FinanceProject Finance is long-term debt finance offered for large infrastructure projects depending upon their projected cash flows. Moreover, an investor has to form a Special Purpose Vehicle (SPV) to acquire the same. read more field. But these career options have a lot to do with financial modeling. Let’s have a look at the job profile.

financial manager Salary

source: payscale.com

#7 – Treasury & Proprietary Trading

This field needs active financial modeling. Let’s find out.

  1. You should know how to do technical analysis.
  2. You should have a fundamental knowledge of equity, debt, swap, commodities, options, etc.
  3. You should know how to do both simple and complex financial modeling as well as how to create shorter models.
  • Compensation: The compensation of a proprietary trader is around US $79,980
Proprietary Trading salary

source: Payscale.com

So with this, we have discussed various Career Beyond Investment Banking & Equity Research and be happily marching along with your existing skills and abilities.

This article has been a guide to Careers beyond Equity Research / Investment Banking. You may also have a look at these articles to enhance your learnings in financial analysis –

Reader Interactions

Comments

  1. Neeraj Kumar Tiwari says

    Very helpful info shared
    Thanks a ton Dheeraj

    • Dheeraj Vaidya says

      thanks Neeraj!