Financial Modeling

CFA Certificate Course Online   CFA ®   designation is considered to be the gold standard in the Investment Management industry opens up a lot of career avenues for candidates. In this article, we will talk about investment banking as a career option for CFA ® candidates.  #1 What is Investment Banking? Investment banks act as an intermediary in the financial transaction for corporates. #2 Following services are provided by investment banks # Fund raising (debt & equity) # Valuation services # Pitch deck creation # Mergers and Acquisition advisory # Corporate restructuring # Capital market services #3 There are two types of Investment Banks Criteria Bulge bracket investment banks Boutique investment banks Number of areas served They serve various areas simultaneously such as valuation fundraising M&A They are usually focused on one or two areas of the investment banking sphere Organizational Size They are much bigger in their market cap and employee size They are...

  Planning is the first essential element of an organization’s vision; it comprises various steps. The first step is formulating the qualitative and quantitative expansion, sustenance, and fundraising plan. The qualitative part of it contains the scoping of products and services, market research, and validation. However, the quantitative aspect includes financial planning, projections, and budgeting. Financial Modeling usually helps model this quantitative aspect. A Financial Model is a quantitative exercise usually involving MS- Excel, used to map unit economics of each part of an organization, along with product lines that might be added into the future to project an expected revenue base, costs involved and valuations, if required. There are various approaches to this: - 1.  Top-Down Approach- Under this approach, the financial analyst would start with looking at market players, shortlisting the KPIs and industry scenarios. Post that he/she would be able to proceed further ...