Destination Wall Street: Charting a Course
The journey to a career in investment banking, investing, or any professional finance field is never easy or guaranteed. My path began in high school. Like many individuals, I had an affinity towards investing in the stock market. This curiosity began by simply seeking to understand what all the letters and numbers running across the bottom of the financial news screens meant. One of my first positions was Juno Online Services (JWEB), an email service I was using in 1999. In a very much Peter Lynch-style approach, I simply invested in JWEB at the IPO because I used the service and the share price was $13 per share, so I could buy a few dozen shares. I had little knowledge of even rudimentary fundamental analysis. Well, roughly six months following the IPO, the company announced the introduction of a free email offering and the stock shot up sixfold to $80. The shares then fell by $20; I got spooked and sold. Still, my initial $500 investment was now worth $2,500. Needless to say, I was hooked but I also recognized that if I wanted to sustainably invest, I needed more know-how.
At the time, as a teenager growing up in Cleveland, Ohio, I was working in the dairy section of the local grocery store, Heinen’s. While my friends were bagging groceries and collecting tips, I was stocking shelves and pouring out spoiled milk. I recall thinking, I’m not too sure this is the right after-school job for me. Ultimately, I hopped over to the Merrill Lynch branch office a quarter mile up the road, pleaded for a an after-school gig, and began my introduction to professional finance at age 17. That branch office was particularly active given the high-net-worth client base, which included a professional sports team owner. There, I was exposed to initial public offerings, mergers and acquisitions, and other corporate events that drove the market and returns for clients. Nevertheless, I knew that the branch office was a step or two removed from those transactions. I understood that there were individuals behind those deals providing advice to CEOs and CFOs and my interest in investment banking was sparked.
Once I began college at Indiana University’s Kelley School of Business, a top 10 undergraduate business program, I focused my studies on learning about valuation and the markets. Underlying that focus, I understood that I needed outstanding grades to even be considered for an investment banking position. I also sought the mentorship of an investment banker who worked for Drexel Burnham Lambert, which was one of the innovators of many of the transaction structures that are widely employed today, including leveraged buyouts. He’s an individual I greatly admire, both the way he lives his life personally and professionally, and he’s still a mentor today.
Through the job exploration process, I quickly learned that there were no practical guides to help aspiring graduates break into Wall Street. As I began the interview process and faced challenging technical questions, I realized that my classroom experience did little to prepared me for the day-to-day realities of the job. I began compiling bits and pieces from various sources and conversations with friends and contacts already working in banking. I ended up cobbling together my own prep guide that helped me land a full-time position. That initial guide became the outline for our maiden book, Investment Banking: Valuation, LBOs, M&A, and IPOs.
As a result of my preparedness and eagerness, throughout college I had multiple summer internships. It was during my summer internship with UBS between my junior and senior year that I met Josh Rosenbaum, who became my coauthor. Upon our first meeting, I shared my thoughts regarding the lack of an accessible guide to prepare candidates for interviews. Josh R. had the same thoughts and we eventually decided to write the book together. Following a process that would take five years and involve hundreds on professionals from founders of private equity firms to junior bankers, Investment Banking became the first truly practical guide to understanding the valuation methodologies and transaction processes in an industry that was once an old boys' club.
Ultimately, I landed a full-time position at Deutsche Bank in Leveraged Finance. Once on the job, the true necessity for the book became clear given the specialized nature of certain investment banking departments, such as leveraged finance and restructuring. While I did have some initial training, a few weeks wasn’t enough for what was to follow. And those late nights spent modeling and drafting pitchbooks necessitated an off-the-shelf reference guide.
Further, after three-to-six months on the job, you have real client responsibilities. Early on, I recall my first LBO, where I was on the phone with the CFO of the company, walking him through the financing and covenant model. Straight out of college as a junior banker you’re working with people that are in some cases three times your age, both internally and on the client side. It’s a tremendous amount of responsibility early on. So, you need to get trained and become proficient fairly quickly.
Beyond preparing the past generation of bankers for their jobs, our book has become the go-to resource for those late-night pitchbook and modeling sessions. We’ve also continued to expand the book for new and existing bankers, given that a keen understanding of the core banking tools and techniques is key for continued success on Wall Street. A dozen years after the initial publication, the book has sold over 250,000 copies and is now in its third edition with updated and expanded content given the everchanging economic and deal-making landscape.
