www.efinancialcareers.com/students | Careers in Financial Markets 2014


21 career insight


James Thomlinson


Vice president, UK M&A, J.P.Morgan


James graduated with a degree in economics from Edinburgh University and joined J.P.Morgan in 2008.


Students need to go into the job with their eyes open - there are a lot of late nights, and as a deal comes to fruition, work can eat into your weekends.


Because the competition for places in M&A is so intense, the technical skills expected of graduates - numeracy and excellent communication skills - are a given. Desire and motivation is what will get you ahead, and this is hard to fake on an ongoing basis. People need to be in it for the buzz of the job.


At VP level, my role involves speaking to lawyers, accountants and other financial advisers, and bringing all the


information they provide together to offer the best advice to clients. This can be structuring and valuation advice for a large, high-profile M&A deal, or linking a number of interested parties together to make a bid for a particular asset.


We typically start work at 8.30am, and I tend to leave the office around 9pm. Even then, I’m still available checking emails, reviewing documents and often participating in conference calls, particularly if a client is on the West Coast of the US. Students need to go into the job with their eyes open - there are a lot of late nights, and as a deal comes to fruition, work can eat into your weekends.


This afternoon I will be drafting an offer letter for a deal with a company that the team has been working on for the last three months. We’ve


been working together to build a valuation model and talking to industry consultants, clients and accountants to give us the input to decide on a price. This two to three-page letter is a culmination of that effort, assimilating the information and presenting it to the client.


What often gets overlooked about working in M&A is that it’s predominantly a people business. For all the analysis, churning through Excel and Powerpoint, the key is being able to convey this message to the client, whether that’s a FTSE 100 CEO or a partner in a private equity firm.


Pay and bonuses


First-year analysts in M&A earn an average of £45k ($68k) base salary and a bonus of between £16-28k ($25-42k), according to figures from UK recruiters Dartmouth Partners. On Wall Street total compensation for first-year analysts is $110k, according to headhunters Glocap.


Skills sought


Given that much of an analyst’s time is spent producing complex financial models used for company valuations, investment banks will expect you to come armed with mathematical skills and a keen aptitude for spreadsheets.


“You spend a substantial amount of time preparing, gathering information and synthesising it in such a way that helps clients make decisions that meet their objectives,” says Frawley. “Therefore, an effective M&A banker has to be strong on the quantitative aspects of the job, and effective at understanding deal dynamics, at identifying critical issues and at being creative and thoughtful in how to address them.”


Numerical skills are important, but they’re by no means the only things an M&A banker must possess. Banks expect you to be autonomous, a quick learner and, considering the long hours, able to maintain focus and accuracy under pressure.


“You should be willing to take responsibility and demonstrate the strong communication and interpersonal skills that are needed in order to work successfully with clients and in teams,” says Brian O’Keeffe, vice president, investment banking division, EMEA at Goldman Sachs.


The analyst role is a launch pad for your M&A career, so banks will also expect to see evidence of the skills required further down the line. Frawley says that senior bankers spend their time “developing and nurturing client relationships, originating new business and managing the execution of projects”. Suffice to say, wallflowers need not apply, but any good investment banker also needs business acumen and an ability to think longer-term beyond the current deal.


M&A deals are also all about team work, so you should feel comfortable working with a range of colleagues across various departments and geographies: “You need to be able to learn quickly, have an innovative mindset, be a true team player and have the ability to interact with colleagues and clients across the globe,” says Mark Barbour-Smith, COO for M&A, EMEA at Credit Suisse.


pay and bonuses


Average global M&A pay 2012 ($k) role


1st/2nd year associate 3rd year associate Vice president Director


Managing director Source: Options Group Intelligence Unit


base salary Total compensation 100-125 125-140 200 300


300-500


250-350 300-400 400-650


600-1,300 1,100-1,700


geTTIng In


InvesTmenT bAnKIng


FInAnCIAl servICes


EMPLOYERS


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