Analyst
Roles an Analyst may undertake in Investment
Banking:
Valuation Analysis: Valuation
is the ultimate skill that every Analyst works to master during
their career because it underpins the substance of Citi's advice to
clients and captures the essence of being a banker. An Analyst is
responsible for performing valuation analysis, which typically
looks at several methodologies to develop a valuation range. An
Analyst frequently relies on a universe of peer companies that he
or she selects, and analyses them. How their peer groups are valued
in the public markets, and how comparable companies were sold in
the past, is frequently the basis for establishing the value of
your client. After all that number crunching judgment must be
applied.
Modeling: Modeling and
valuation are inextricably linked technical tasks performed by an
Analyst. The primary purpose for building a model is to aid in
valuation analysis. The benefit of a model is the ability to modify
assumptions and key inputs easily so as to determine the effect on
valuation. Modeling is central to sensitivity analysis, to
understand how the business performs as assumptions change. The
process of building a model also deepens an Analyst's understanding
of a company and its industry. Often the Analyst will develop such
a detailed understanding of a company that even very senior bankers
will ask Analysts questions directly. Many models will be built to
accommodate full functionality, including forecasting certain
operating metrics in addition to the standard income statement,
balance sheet and cash flow statement. It is not unusual for the
company to adopt the Analysts' model for its own internal use.
Company Research and Industry
Analysis: Understanding a client and its peer companies
within an industry setting is absolutely essential for providing
the best advice to clients. Such an understanding is also crucial
to performing a proper valuation or building a model. One of the
most helpful tasks an Analyst can perform for a client or internal
working team is to review and select the best and most relevant
research and news, which often requires a lot of personal study and
dedication of time. Information can be sourced from the internet,
news services, broker research and Citivision -Citi's in-house
information and market data provisioning portal. Citi has dedicated
researchers that work under the guidance and direction of the
Analyst that greatly help in the gathering of information.
Presentation Preparation: In
addition to performing research, modeling and valuation analysis,
an Analyst must synthesize this information in an
easy-to-understand manner for the client. While an Associate may
design the pages and flow of a presentation, the Analyst is
responsible for the magic that transforms the doodles and scribbles
on pages drafted by the Associate into a professional document
presentable to a CEO or head of state. To help the Analyst
accomplish this mammoth task, there are design teams that work
under the guidance and direction of the Analyst.
Co-ordination: Each project
has multiple work streams, deadlines and deliverables that must be
managed. An Analyst helps coordinate such tasks with internal
working teams, external working teams (such as lawyers and
accountants) and the client. Additionally, Analysts work with
Associates to prepare required internal documentation, such as
preparing internal memorandums. One example is a "New Business
Memorandums" that internally notifies the senior management that a
client requires our services and requests approval to work for the
client at a given fee. Whilst this is not the most intellectually
rigorous of Analyst tasks, it is an important part of Citi's
internal controls and compliance with market regulator
requirements.
