What is Investment Banking Hours?
On average, an investment banker works for 80 hours a week. Yes, there may be some weeks where their working hours may go around to 100 hours a week. The working hours will also differ for different positions of employees.
With time, some banks have begun to realize the need for “no work on weekends”. But still, the investment bankers are expected to complete the given amount of work in the given timeframe only.
Investment Banking Hours by Position
Well, the working hours differ from one position to another.
#1 – Investment Banking Analysts
An investment banking analystInvestment Banking AnalystInvestment Banking Analyst works with investment banking team and expertise in the area of Accounting, Financial Modeling, Project financing, Project Valuation, and Financial statement Analysis. These analyst has deep knowledge in Excel and they are good at VBA to analyze the market data and financial modeling. The analytic work consists of building a financial model for different projects like Infrastructure projects (i.e. Power projects, real estate, etc.). works for as high as 80 hours a week. Thus, they suffer long working hours and little work-life balance.
#2 – Investment Banking Associates
The investment banking associates usually work less than the analysts since the associates are way ahead of analysts in terms of learning. On average, an investment banking associate spends approximately 65-75 hours a week. The work becomes manageable for an associate and also, he learns to manage the time.
#3 – Vice President
The role of the Vice President is to pitch new clients, manage the clients and support the senior-most management, says Managing Director. The workings hours of a Vice President usually vary from 60-80 hours and are dependent on how active is he in taking up the work.
#4 – Managing Director
Managing Directors do not stay in the office premises for long hours. This is due to the fact that they are mostly into client meetings. That is why there is a lot of traveling work and client interaction involved for a Managing Director.
Why are Long Hours of Work for Investment Bankers?
A question arises here, that why are there long working hours for investment banking executives? Well, the reason is that the investment bankers are entrusted with the responsibility of managing the investments and thus, a large amount of money of the clients remains at stake. Thus, there is a huge responsibility that they are required to meet. The analysts spend most of their time preparing the research reports and presentations so as to make an attractive pitch for the client. This takes a lot of their time since the objective is not just sales but to make a good client pitch. Moreover, since a lot of client interaction is involved, the work hours tend to expand.
What does an Analyst of Investment Banking Do?
The role of an investment banking analyst basically involves research, analysis, and report-based work.
- They involve themselves in carrying out intense research for various types of industries. In order to carry out the research, they visit the company website, search for relevant news and even connect with the company representatives. On the basis of their research, they make notes or a case study as to the pros and cons of investing in a particular company or industry.
- One of the important parts of their job is to prepare financial valuation models in excelFinancial Valuation Models In ExcelFinancial modeling in Excel refers to a tool used for preparing the expected financial statements predicting the company's financial performance in a future period using the assumptions and historical performance information. spreadsheets for relevant deals. In doing so, they keep track of the financial trends of the investments under review.
- The third key area of the job profile of an investment banking analyst is to prepare a presentation for pitching them to potential clients. They are expected to be good in communication and thereby prepare quality and attractive presentations. Moreover, they are expected to give presentations for IPOIPOInitial Public Offering (IPO) is when the shares of the private companies are listed for the first time in the stock exchange for public trading and investment. This allows a private company to raise the capital for different purposes. too.
Thus, as evident from above, the role of investment banking analyst is basically linked to research work and preparation of relevant case studies, notes and paper works and to assist their seniors with pitching to the client.
The job of an investment banker is surely attractive. However, if you want to pursue your career in investment banking, be ready to work hard and spend quality working hours at your office desk. Having good communications will provide you an edge over the others!
This has been a guide to What is Investment Banking Hours? Here we discuss the position of investment banking hours and why they have work for long hours. You can learn more about from the following articles –