The core work: building financial models and pitch books
Investment banking analysts spend most of their time building financial models in Excel and assembling pitch books — the documents that banks show to potential clients. A pitch book is a presentation that walks a company through a proposed deal: what it might cost, what the bank would charge, what the financial outcome could look like. The analyst builds the numbers that go into those pages.
On a typical day, an analyst might receive a request from a senior banker: "We're pitching a merger to Company X. Build me three scenarios showing what their earnings per share would look like if they bought Company Y at $50 million, $75 million, and $100 million." The analyst then constructs a model — a spreadsheet that pulls in the target company's financial statements, applies assumptions about cost savings or revenue growth, and calculates the result. That model becomes the foundation for the pitch.
This work is technical and detail-oriented. A single error in a formula can change the recommendation the bank makes to a client. Analysts are expected to catch their own mistakes and to understand not just how to build a model, but why each assumption matters.
Key Takeaways
- Investment banking analysts spend 60 to 80 percent of their time building financial models and creating pitch books that show clients what a deal might look like.
- The role involves gathering company financial data, researching market conditions, and stress-testing assumptions to make sure the numbers hold up under different scenarios.
- Analysts also handle administrative work: scheduling meetings, organizing documents, and preparing materials for client presentations.
- The job typically requires working 60 to 80 hours per week, with intensity spiking when deals are active and slower periods when the deal pipeline is thin.
- Most analysts stay in the role for two to three years before moving into private equity, corporate finance, or another banking division.
Research and data gathering for deal analysis
Before a model can be built, an analyst has to gather the raw material. This means pulling financial statements from the target company's SEC filings, researching comparable companies in the same industry, and understanding the market conditions that affect the deal. If the pitch is about a software company acquisition, the analyst needs to know what other software acquisitions have sold for, what multiples the market is paying, and what growth rates are typical in that sector.
Analysts use Bloomberg terminals (expensive financial data platforms that banks subscribe to), company websites, SEC databases, and industry reports to build this picture. They create comparison tables showing what similar companies are worth, what their profit margins look like, and how fast they are growing. This research informs the assumptions the analyst will use in the model.
A significant part of this work is stress-testing — running the model under different assumptions to see how sensitive the outcome is to changes. If the deal only makes sense if the target company grows revenue by 15 percent per year, but historical growth has been 5 percent, the analyst flags that risk. Senior bankers use this analysis to decide whether to pitch the deal at all, or to pitch it differently.
Supporting senior bankers and client meetings
Analysts work directly under senior bankers — typically a Vice President or Managing Director — who own the client relationship. When a client meeting is scheduled, the analyst prepares the materials: organizing the pitch book, making sure all the numbers are current, printing and binding copies, and sometimes traveling to the meeting to handle technical questions.
During the meeting itself, the analyst often sits in the back of the room. If a client asks a detailed question about an assumption in the model — "What happens if we only achieve 8 percent revenue growth instead of 10 percent?" — the analyst may answer directly or hand a note to the senior banker with the updated number. After the meeting, the analyst incorporates feedback and revises the model for the next round.
This support work is constant. Clients ask for changes, new scenarios, updated market data. An analyst might revise a pitch book five or six times before a deal closes, each time pulling new numbers and rebuilding the financial model to reflect the latest information.
Administrative and operational tasks
A portion of an analyst's week goes to work that does not directly touch a deal. This includes scheduling conference calls, organizing deal documents in shared folders, preparing expense reports, and maintaining databases of past deals and client information. Some of this work is handled by administrative staff, but analysts often end up doing it themselves because they know exactly what is needed and it is faster than explaining it to someone else.
Analysts also attend internal meetings where the banking team discusses the deal pipeline, reviews recent pitches, and plans upcoming client calls. These meetings are where analysts learn how senior bankers think about deals and how they position the bank's services to clients.
Hours, intensity, and deal cycles
Investment banking is known for long hours. Analysts typically work 60 to 80 hours per week, with significant variation depending on the deal cycle. When a major deal is in active negotiation, an analyst might work 90 to 100 hours per week for several weeks. During slower periods, the hours may drop to 50 or 60 per week, but the work is still demanding and unpredictable.
The intensity comes from the fact that deals move quickly and client expectations are high. A banker might ask for a revised model at 5 p.m. on a Friday with the expectation that it will be ready Monday morning. Analysts learn to work efficiently, to anticipate what the banker will need next, and to catch errors before they reach a client.
Most analysts work in one of several groups: mergers and acquisitions (M&A), where the focus is on buying and selling companies; capital markets, where the focus is on raising money through stock or bond offerings; or industry-specific groups like technology, healthcare, or energy. The work is similar across groups, but the types of deals and the clients differ.
Progression and exit opportunities
The analyst role is typically an entry point into banking, not a permanent position. Most analysts stay for two to three years, then move into one of several directions. Some move up to Associate within the same bank, taking on more client responsibility and larger deals. Others move to private equity firms, where they use their modeling skills to evaluate companies for investment. Still others move into corporate finance roles at large companies, where they handle mergers, financing, and strategic planning from the company side rather than the bank side.
The skills an analyst develops — financial modeling, deal analysis, client communication — are portable. Banks know that analysts will leave, and they structure the role as a training ground. An analyst who spends two years building models and supporting deals has a clear path to the next step in finance.
Day-to-day variation and what makes the role different
No two days are identical in investment banking. An analyst might spend Monday morning building a model, Monday afternoon in a client meeting, Tuesday morning revising the model based on feedback, and Tuesday afternoon researching comparable companies for a new pitch. The work changes based on what deals are active, what stage they are in, and what the client is asking for.
What sets the role apart from other finance jobs is the combination of technical skill and client-facing work. An analyst has to be comfortable with complex spreadsheets and financial analysis, but also comfortable presenting to senior executives and explaining why the numbers matter. The role is also more deadline-driven than many finance positions — deals have closing dates, client meetings have set times, and delays can cost the bank money.
Frequently Asked Questions
Do investment banking analysts work on real deals or just practice examples?
Analysts work on real deals from day one. The models they build are shown to actual clients and used to make real business decisions. However, junior analysts typically work on smaller deals or support roles on larger deals, and they work under close supervision from senior bankers who review their work before it reaches a client.
What skills do you need to get hired as an investment banking analyst?
Banks look for strong math and analytical skills, comfort with Excel, and the ability to work long hours under pressure. Most analysts have a bachelor's degree in finance, economics, accounting, or engineering. Some banks hire analysts directly from college; others hire from MBA programs. Communication skills matter because analysts have to explain their work to senior bankers and sometimes to clients.
Is investment banking a good first job out of college?
It depends on your goals. The role teaches you how deals work, how to build financial models, and how to work in a fast-paced environment. The pay is high relative to other entry-level finance jobs. The downside is the hours and intensity — many analysts find the lifestyle unsustainable long-term. It is a good stepping stone to private equity, corporate finance, or other finance roles, but not a good fit for everyone.
How much do investment banking analysts make?
Base salary varies by bank and location, but typically ranges from $80,000 to $150,000 per year for analysts at large banks. Most analysts also receive a bonus, which can equal or exceed the base salary in years when the bank has a strong deal pipeline. Analysts at smaller banks or in smaller cities typically earn less.
What happens if you make a mistake in a model that a client sees?
Mistakes happen, and banks have processes to catch them. Senior bankers review analyst work before it goes to a client, and multiple people typically check the numbers. If an error does reach a client, the bank corrects it and explains what happened. A single mistake does not end an analyst's career, but repeated carelessness does affect performance reviews and advancement.