Did you recently pass the CPA exam? How about looking for a career change out of public accounting? Whether you are a fresh college graduate trying to secure your first job or an experienced accountant ready for a change, the investment banking industry offers a variety of opportunities for CPAs.
In this article, we’ll cover five strategies you can use to break into the investment banking industry.
Pick Your Sector
With a career in investment banking, you can take on many different roles and responsibilities. Solidifying your investment banking dream job will help define your path and break into the industry. Here are a few different roles within the investment banking industry:
- Underwriting – In an underwriting investment banking career, you will match individuals with corporations looking to raise capital, whether through debt or equity.
- Mergers and Acquisitions – Identifying target companies, advising on the details of an acquisition, negotiating deals, and completing due diligence are all roles a CPA in the investment banking industry can take on.
- Initial Public Offerings (IPOs) – An investment banking CPA helps prepare companies to go public, from developing compliant financial statements to marketing the offer.
- Trading – Investment banking also involves trading derivatives and equity securities.
- Asset Management – Managing other client’s money is a common path for an investment banking CPA.
Determining which route you want to go in the investment banking industry will help you develop the skills and connections to land a job.
Learn Financial Modeling and Valuation Skills
The investment banking industry relies on financial modeling and valuation methods (we've got a course bundle of 25.5 NASBA CPEs on this topic) to generate alpha, advise clients, and pinpoint investments. If you’ve completed your undergraduate degree in accounting, you might not have been exposed to these items, leaving you unprepared for your new role.
For one, investing in your skills sets you apart from other candidates, helping you land the job. Studies suggest that nearly half of job postings in the investment banking industry highlight financial modeling and valuation skills. In addition, taking the time to develop your skills allows you to excel in your new role from the start. With the proper skill set, you can break into the investment banking industry confident and qualified.
Moreover, you don’t have to learn about financial modeling and valuation methods the old-school way. Instead of buying a textbook and a pack of highlighters, you can leverage an online course through Wisdify. With an online course library, high quality video instructions, and tons of examples, you can master the skills you need to start your career in investment banking. Not to mention that each course is eligible for CPE credits.
Build Your Network
Did you know that 80% of positions are filled through referrals and networking? In the investment banking world, connections go a long way. The second you decide to enter the investment banking realm, you need to start forming connections. If you don’t already have a LinkedIn profile, take the time to create an account and start connecting with past colleagues, classmates, and individuals in the investment banking industry.
You might find that your network includes individuals who work for investment banking companies. This gives you a foot in the door to set up an interview and a potential referral. An evaluation of 4.5 million applications found that referred candidates are 7x more likely to be hired than other applicants on job boards.
Building a strong network could be the differentiating factor between landing your dream investment banking job and becoming just another applicant. Furthermore, you can also set your availability on LinkedIn, increasing your chances of having investment banking companies reach out to you directly.
Expand Your Credentials and Education
Being a CPA already gives you an advantage when entering the investment banking industry; however, certain career paths might require a Chartered Financial Analyst (CFA) designation. The CFA exam is similar to the CPA exam, requiring a bachelor’s degree, the passing of exams, and continuing education.
By studying and taking the CFA exam, you may be able to better position yourself for a career in investment banking. With topics like financial statement analysis and economics on the CFA exam, you may already have some of the knowledge necessary to pass the exam.
Remember, earning your CFA credentials doesn’t mean your CPA credentials are erased. Instead, you will be able to easily adapt to any career in investment banking, whether that relies on your financial statement understanding from your CPA education or financial modeling and wealth management from your CFA credentials.
Gain Job Experience
Recent studies show that 30% of job postings included a “years of experience” requirement. Additionally, 80% of employers in a survey agreed that they were “very likely” or “likely” to favor candidates with work experience rather than education. Depending on the sector of investment banking you are entering, you might already have the necessary work experience.
For example, if you are entering M&A as a financial statement analyst, your background as a CPA would have properly prepared you. However, for many CPAs crossing over to the investment banking realm, applicable work experience isn’t always available. This means you might have to start at the bottom, taking an internship or financial analyst position.
Holding a lower-level position in an investment banking company is a great way to break into the industry. For one, you will start to develop more connections in the industry. In addition, these jobs provide you with tangible work experience that you can include on your resume. Finally, an entry-level job is a great way to determine if the investment banking industry is the right fit for your career change.
Summary
Are you ready to break into the investment banking industry? Whether you are ready to expand your skillset related to the investment banking industry or refine your soft skills, Wisdify has you covered. We have an extensive library of CPE-eligible courses designed to help you successfully start your career in the investment banking industry. Reach out to a team member to learn more or visit our course catalog to browse your options.