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What Do Investment Bankers Do?

what do investment bankers do ?

The term investment banker brings to mind Wall Street, million-dollar deals and intense boardroom meetings. But what, in truth, does the investment banker actually do? What makes them so relevant in finance and business?

Here in this post, we will discuss the role of investment bankers in laymen terms. Whether you’re a student, a career switcher, or simply interested in money, this guide will help you make sense of what investment bankers do — and why it matters.

1. What Is Investment Banking?

Investment banking is a sector of banking that aids large companies, governments and other groups in raising capital, help with making investments and offering other financial services. While retail banking is the part of banking that holds (and lends) savings accounts and makes personal loans, investment banking tracks large-scale money movement.

It’s all about advising clients on big financial questions — like mergers, initial public offerings and how to raise capital

2. Investment Bankers Help Companies Raise Money

One of the most critical roles of investment bankers is to help companies raise capital, either through equity (stocks) or debt (bonds or loans).

For example, a company wants to build a new factory, and it needs ₹1,000 crore. An investment banker would assist them:

  • To go public (an IPO)
  • Issue corporate bonds
  • Tapping big investors with private placements

Why it matters: Companies need financing to expand. Investment bankers hook them up with investors and put the deals together to allow it to occur.

What Do Investment Bankers Do?

3. They Advise on Mergers and Acquisitions (M&A)

A major function is also to help companies with mergers, acquisitions and takeovers. If Company A though, wants to buy Company B, investment bankers can assist:

  • Finding suitable targets or buyers
  • Determining the company’s value
  • Negotiating deal terms
  • Handling all the legal and finance part of the deal.

Why it matters: M&A deals help determine the future of industries. Bankers ensure the deals are financially solid and legally smooth.

4. They Work on Initial Public Offerings (IPOs)

The head of shareholders engagement and a lead for proxy voting at London-based asset manager Aviva Investors. They help with:

  • Valuing the company
  • Drafting documents (like the prospectus)
  • Selling the IPO to investors (known as roadshows)
  • Pricing and distributing shares

Why it matters: Companies access to the public money through IPOs. Investment banks make sure the listing is successful, which means it raises the money the company needs and sends the right signals to the markets.

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5. They Underwrite Securities

“One major benefit of the underwriting process is, it allows bankers to underwrite and agree to purchase a predetermined number of securities (either shares or bonds) and then resell them to the public or institutions. If no one buys, the bank is stuck with the risk.

There are two main types:

  • Firm Commitment: Guarantees all shares will be purchased.
  • Best Effort: Bank makes its best attempt to sell but can’t guarantee it.

Why it matters: Underwriting provides financial certainty for companies and expedites capital-raising activities.

6. They Perform Financial Modelling and Valuation

Before any deal goes down, it is investment bankers who scrutinize companies’ financial health. They develop intricate financial models that project future performance and value the company by:

  • Discounted Cash Flow (DCF)
  • Comparable Company Analysis
  • Precedent Transactions

Why it matters: A transaction is only as good as its price. Bankers make sure no one overpays or undersells.

7. They Offer Strategic Advice

Beyond numbers, investment bankers counsel clients on strategy:

  • When to go public
  • Whether to expand or divest
  • How to manage investor relations
  • What type of financing works best for them?

Why it matters: Chief executives and corporate boards often turn to investment bankers for impartial, data-driven guidance on big decisions.

8. They Connect Clients with Investors

Being part of an investment bank’s network, they keep contacts with institutional investors, HNIs, PE/VC funds. They use these connections to:

  • Pitch investment opportunities
  • Facilitate company/potential investors meet up.
  • Facilitate negotiations and build trust

Why it matters: Having access to the right investor at the right time can change a company’s future.

9. They Help with Restructuring

If a company is in financial difficulties, investment bankers could assist with the restructuring of debts or the sale of assets. This includes:

  • Renegotiating terms with creditors
  • Selling divisions to reduce losses
  • Locating buyers or partners who can come in and invest

Why it matters: Saving jobs, not to mention repaying lenders and reviving companies rather than letting them die, would be an excellent use of any bailout.

What Do Investment Bankers Do?

10. They Work Long Hours (and Under High Pressure)

The truth about investment banking is that it isn’t easy. Bankers frequently put in 12–16-hour days, particularly when they are working on deals. Their day may involve:

  • Financial analysis in the morning
  • Calls with clients at noon
  • Road shows or presentations in the afternoon
  • Inside meetings and model revisions late into the night

Why it matters: The stakes are high — but so too are the expectations. Investment banking is done with long hours, many all-nighters, and an ample amount of concentration.

11. What Skills Do Investment Bankers Need?

Here are those hard and soft skills you will need to succeed in investment banking:

  • Financial modelling and Excel mastery
  • Accounting, corporate finance and valuation knowledge
  • Communication and presentation skills
  • Negotiation and client management
  • Time management and teamwork
  • Finance, economics, business, or accounting degrees are typical. And if you have an M.B.A. or a C.F.A., can increase your odds of getting in and ahead

12. Where Do Investment Bankers Work?

Investment bankers work for different types of companies:

  • Large Cap Banks: JPMorgan, Goldman Sachs, Morgan Stanley
  • Boutique Banks: Lazard, Evercore, Rothschild
  • Mid-Market Banks: Jefferies, Houlihan Lokey
  • Indian Banks: ICICI Securities, Kotak Investment Banking, Axis Capital

They might specialize in particular industries (tech, pharma, real estate) or regions (Asia-Pacific, North America, etc.).

13. What Is a Typical Career Path?

Here’s a typical progression for a career in investment banking:

  1. Analyst (0–2 years) –Data work, research and financial models
  2. Associate (2–4 years) – Interact with clients, present, work on small deals.
  3. Vice President (4–7 years) – Deal leader, team manager
  4. Director / Executive Director – Establishing client relationships, senior strategy
  5. Managing Director – Business Development, Closing Managing Director – BD & CLOSING.

It’s a tough road — but the career growth and payoffs can be huge.

14. How Much Do Investment Bankers Earn?

In India:

LevelAverage Salary (₹ per annum)
Analyst₹12–20 lakh
Associate₹20–40 lakh
Vice President₹50 lakh–1 crore
MD/Director₹1 crore+ (plus bonuses)

Bonuses can be huge- based on the success of deals closed.

Final Thoughts

Investment bankers are so much more than money-movers—they are deal-creators, advisors, strategists, and problem-solvers. They stand at the core of global finance, and help businesses to grow, to change, even to live.

If you enjoy crunching numbers, complex problems, and making significant decisions, the direction of investment banking may intrigue you. But it’s also hard work, pressure filled and long hours, so just make sure you are ready for the ride.

Take your place as a titan of the boardroom, one wise decision at a time.

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