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As we move further into summer internship season, many have asked me why they can get interviews but can never seem to get actual offers.

Usually, they lack a hook. To get an investment banking job, it’s not enough to show you can do the job well and have a serious interest in it.

You have to show them that they need you more than you need them.

Of course, this is never really true. You’re just a resource. They’re a $100 billion firm. But a hook makes them think differently, at least temporarily.

What’s A Hook?

A hook makes you stand out from everyone else. It can be your extreme enthusiasm over the job that caused you to email them 59 days in a row. It can be the experience you had working at a Chinese Private Equity firm last summer. It might even be how you were a Varsity Athlete in that sport they’ve never heard of.

But it can’t be, “I really want to do banking so I can learn!” or, “I like the fast-paced environment!”

Those are just standard reasons to say you want to do the job.

When bankers interview you, they try to check off 3 boxes – 1) smart 2) can do the job 3) like him. A hook makes sure #3 is a “check.”

But I’m Just A Normal Person, How Can I Get A Hook?

One good tactic is to make a connection with your interviewer by having similar interests, asking questions about some topic he or she likes, or having friends/alumni in common.

This requires upfront research and isn’t always possible. But when you can do it, it works well.

Was your interviewer in the Marines? Maybe your brother/cousin/uncle was too. Was he in the industry where your dad/cousin/uncle works? Same undergraduate schools?

No One Wants You Until Someone Wants You (Then Everyone Wants You)

Everything is just high school all over again.

Another “hook”: Convince the firm that you have offers with other investment banks. When they find out others want you, they’ll be afraid they’re missing something and want you more.

The correct answer to, “Are you interviewing with other firms?” is NEVER, “No.” Even if you’re not, never say, “no.” Just be vague and say you are interviewing and considering several options.

If you are indeed interviewing successfully with other firms, mention the names – this works especially well if they are competitors. Naming any of the bulge brackets when interviewing with a bulge bracket, for example, would give you a boost.

Worst Case Scenario

Sometimes none of these tactics above actually works. This is why you spread your net wide and interview at many different banks – because eventually your hook will work and you will land that investment banking job.

The field of investment banking has changed faces drastically over the years. Initially the functions of banks and banking institutions with regard to this type of banking was clear cut but today, there is a blurry line between investment banking and other forms of banking. However investment banking has taken a dominant role in the financial, business and banking industry due to the fact that more and more businesses are seeking to undergo mergers and acquisitions to increase the their net worth. Today banks are not the only institutions that are engaged in these functions, private equity and venture capital firms are largely concerned with these tasks as well.

Under the corporate finance functions of an investment banking firm, clients are advised on how to raise funds if they want to engage in a merger or an acquisitions. For private equity investors and venture capitalists the advice they get from those who are concerned with this type of banking enables them to make the right decisions. Corporate finance is a function that has notably flourished over the years and has caused investment banking to become one of the most fundamental drivers of the money-market. The large multinational companies as well as the medium scale companies that are seeking funding for acquisitions can do so through making their company stocks public, that is making an initial public offering or they can seek the help of an investment banking institution in the trading of their shares in the stock market.

An important function of investment firm when it comes to mergers and acquisitions is the market analysis that these firms undertake for their clients. The procedures that are involved in mergers and acquisitions are largely dependent on market factors and complex dynamics in the money market; companies thus get invaluable advice on the suitable time to make their move in either merging with another company or acquiring another entity that they are interest in.

Just like most other corporate companies, banks too receive loads of resumes and letters like investment banking cover letters on a daily basis. The truth is, with the bulk of things they receive, they don’t really have time to go through each and every letter from cover to cover. So how do you make them read yours? Here are some tips.

Keep it short

Investment banking cover letters are not entries to an essay writing competition, so don’t put any unnecessary things there that will only make your letter too lengthy to read. Include only the important things in such a way that the meat of the letter can be read within the first 30 seconds. Chances are, if the people reading your cover letter lose interest from the beginning, they won’t even finish reading the whole thing. Get to the point – who you are, what you’ve done, and why we should pay attention to you.

Follow a structure

Plan how your letter is supposed to look and sound like. Just like any sound composition, the elements in your investment banking letter should be coherent. Regardless if the points you want to convey are present, they won’t make a good argument if they are not presented logically. Readers of your finance cover letter have little time. Don’t expect them to have lots of patience.

Include only Relevant Information

Select the items relevant to the point you’re making. What the investment is about? How profitable do you expect it to be? There’s no need to layout the history behind the concept or even the brainstorming that led to the idea of the investment. These things you can discuss in person. They have no space in an investment banking cover letter.

Investment banking may be the most competitive position to apply for after graduation from University. It is not unusual to have 500 to 1,000 resumes for only 25 to 40 vacancies. How well you do on your investment banking interview determines whether or not you make the short list for those few vacancies. Here is some advice on how to stand out from the crowd so you will be selected for an investment banking position.
 
Show interest and dedication
Investment banking is a job that averages 80+ hours of work each week. Candidates who show the motivation and desire to put in the necessary hours will easily make the short list. No company wants to spend the time and money to hire and train an applicant that will get burned out on the hours and quit in less than a year. If you are able to stress that you are willing to do whatever it takes to get the job your resume will end up in the short list.
 
Be prepared
The majority of the questions you will be asked in your interview will be technical in nature. This will range from calculation of formulas to solving case studies. Since this is the meat of your interview questions, you should focus most of your preparation on how to answer these questions. Spend time reviewing how to calculate formulas and practice several different case studies. Companies want to see how well you can solve problems. Your ability to answer these questions correctly will be a determining factor on whether or not you will be considered for the position.
 
Are you a good fit?
You will be asked several questions about why you want to be an investment bank. Your answers will allow the company to measure whether or not your expectations for the job meet the requirements of the job. If they are not a good fit then you will never be selected for the job. Another question is what are you long term goals as an investment banker. The company is trying to gauge how serious you are about the position and working for the company long term. Companies want to hire people that will be with them for a long time instead of somebody who is there for a short period to get experience and then move on to other opportunities.
 
Do you have the right character?
Make sure you answer every question in your investment banking interview factually and truly. If you stretch your answers because you think that is what the interviewer is expecting in your answers, you lose credibility. If you are willing to lie during an interview, you will probably do much worse in dealing with the bank’s clients. No company wants to hire someone who is of questionable character. Do not risk your chance of being hired because you embellish your answers.
 
Investment banking is a one of the highest paid positions in the financial industry. For this reason many people attempt to enter this position after university. Follow this advice and you will succeed in your quest to be hired as an investment banker.

Interviewing for a job as an investment banker is a form of negotiation. The most successful negotiators are the usually the ones with the most information on the other side that helps them to prepare and to succeed at the negotiating table. If you want to stand out from the crowd of other potential applicants you have to be prepared for your interview. There is plenty of information written about the two types of questions you will be asked – fit and technical knowledge. Other information tells you how to dress. But there is some information that nobody will ever tell you, that, if you know, it would make all the difference in getting the job. I am going to share with you those secrets that will help you ace your investment banking interview. Here are 3 secrets that you will never be told.

Secret 1: Don’t claim you want to go into management

It is okay to have drive and ambition but do not set the expectation that you deserve to be in management shortly after graduating from university. Recent university graduates fail in job interviews when they flaunt their desire to join a firm and start making decisions right away. It is very difficult, if not impossible, to be a manager if you do not understand how the business operates. You must first understand the company’s policies, future directions and corporate goals before you can start making decisions. If you express a desire to be in management during your interview, you are showing your lack of knowledge of how a business operates. This is the best way to NOT get a job.

Secret 2: Don’t overstate your goals

A common question you might be asked is to state where you expect to be in five years with the company. A frequent response is to state that you expect to be a Vice President or running the company in five years. This would be a mistake. How can you know where you will be in five years if you have never worked a day for that company? A better answer to this question is to stress that you expect to be in a position that rewards you for your dedication and allows you to apply the skills that you have learned. This is a much more realistic answer to this type of question.

Secret 3: It is not the question; it is the answer that is the problem

It is not unusual for potential applicants to be asked quite a few trick questions during the interview. These are known as impossible questions. They are asked to gauge the resourcefulness or out-of-the-box thinking of the potential applicant. People are hired or not hired based on their answers to these types of questions. Employers are looking to see how well you can solve the question under stress because this determines how well you can survive it today’s hypercompetitive work environment. You are not expected to know the answer to the question. You are judged by how well you might arrive at the answer to the question.

Be aware of these three secrets as you prepare for your investment banking interview. How you handle these may determine if you are hired or not.

For finance and business majors, one of the most coveted offers to have at graduation is an analyst position at an investment bank. Business students are attracted by the pay, the prestige and the fast-pace lifestyle that these twenty-something analysts live. But before collecting that (rather large) signing bonus, prospective analysts should make sure they understand what they’re getting themselves into.

Though many will seek investment banking careers, few will succeed. There are only so many IPOs, mergers and leveraged buyouts that take place each year, therefore the industry can only support so many jobs. Furthermore, there are many peaks and troughs in this market, so even if you have a job one year, you may not have it the next.

Despite the high degree of competition and the job insecurity, the resume drop box for analyst positions is always full at the business school’s career office. So what kind of person are these firms looking for?

Getting in the Door

Yes, corporate finance looks for bright minds who can clearly articulate business insights. But investment banks are also looking for students who are driven and disciplined. Athletes often have the ideal personality type for investment banking. They work with a team and practice every day to win. That’s the type of mentality that succeeds in the corporate finance world.

In terms of education and experience, bankers are generally looking for candidates with business and finance backgrounds. Good majors include finance, accounting, business administration and economics, but even math and engineering majors can make their way into an interview if they can demonstrate that they are bright and understand the industry that they’re getting themselves into.

Internships and other work experience that relate to finance are also very important. If a candidate can demonstrate that they’re comfortable with financial modeling and analysis, they are likely to get an interview. But the interview process is where the fun begins.

Once selected for an interview, it is time for analyst candidates to start sweating. These interviews are often the toughest in the business world, and potential candidates should think twice before entering an interview without several hours of practice interviews as well as a few interview study books under their belts.

In these interviews, bankers are looking to verify that the aptitude that they perceived on a resume is actually there. They may do so with brain teaser questions, rigorous financial analysis exercises or strange questions that are meant to throw the candidate off and test how they react to pressure.

Interviews may involve several rounds – on campus, off-site at a hotel or at the firm. The interview process usually culminates in a “super Saturday” round in which the top candidates meet with all the bankers at the firm and socialize – perhaps taking in a sporting event.

Super Saturday helps the firm to make a final decision on which candidates are the best cultural fit. Offers are extended, signing bonuses are accepted, and the newly-minted analysts enter the crazy world of investment banking.

What do Analysts Do?

So why does someone who is fresh out of college get paid such a large salary? In short, analysts have to constantly work their rear off. They may start their day at 8 am and not finish it until 1 or 2am – and sometimes they don’t go home at all. They usually plan to come in on the weekend to stay on top of projects. When all is said and done, analysts regularly put in 80 to 100 hours a week at New York firms and perhaps 60 to 80 hours at firms off of Wall Street.

To understand what it is that analysts do, it’s important to understand the deal cycle of the corporate finance department. Investment bankers – the vice presidents and managing directors – will either approach or be approached by companies with ideas for potential transactions. These deals may include IPOs, follow-on offerings, private placements, mergers and acquisitions.

Bankers will set up a meeting with the company called a pitch, in which they pitch the services of the firm to the company and present their analysis of the feasibility of the potential transaction. At the pitch, the bankers will present the potential client with a pitch book – usually a hard-copy PowerPoint presentation that describes the credentials of the bank along with a detailed analysis of the market in which the company operates and often a valuation of the company itself.

If the company is impressed with the firm and interested in pursuing a deal, then it will engage the firm to execute the transaction. Depending on the type of transaction and the conditions of the market, these transactions can take anywhere from a few months to a few years to complete. At any point in time, bankers can be working on several pitches and deals all at once.

Investment banking analysts rarely get to work on anything more than the pitch books for the bankers. Depending on the firm or the level of confidence that senior bankers have in an analyst, they may get to accompany the senior bankers on a pitch and might also assist in some of the deal execution.

As simple as it sounds, though, preparing pitch books is no easy task. The bread and butter of the analyst position is the comparable companies analysis – or “comps.” Comps are a valuation methodology in which public companies that are similar to the company in question are used to create multiples from which the value of the company can be extrapolated.

Comps are a great way to learn the intricate details of financial statements and develop a fundamental understanding of how value is created in a particular industry or market niche. But after a few months of doing one comp analysis after another, they get extremely tedious.

In addition to comps, analysts might be called upon to prepare a discounted cash flow analysis (DCF) for a pitch book. A DCF model is a bit more involved and requires putting together financial projections for a company, calculating its weighted average cost of capital (WACC) and using it to discount the cash flows to determine its value.

Other forms of analysis that investment banking analysts may be called upon to prepare include leveraged buyout models (LBOs) and precedent transactions analyses (similar to comps). Analysts are also under a lot of pressure to triple check their work to ensure that no errors make it into the pitch book – otherwise, they are likely to get an earful from embarrassed senior bankers returning from a failed pitch.

Many firms offer excellent training programs and have developed several model templates to help analysts up a very steep learning curve and to perform at a high level. The pressure, however, can still be quite intimidating and many of an analyst’s all-nighters occur during the first months as they spend extra time trying to learn their trade.

What are the Perks?

So with all the pressure and long hours, there’s got to be some incentives for analysts to stick around, right? Certainly. Depending on the firm, starting salaries for analysts can range from $60k to $90k, but when you add in bonuses that are often north of 50%, total compensation can range from $100k to $140k.

But wait, there’s more. Many firms have a policy that when analysts have to stay at work past 7pm (basically every night), they get their dinner paid for. Given the expense of the restaurants located in the financial districts, this perk can quickly add up to a lot of money, and many analysts quickly become dining connoisseurs.

Other perks often include reimbursement for cell phone or blackberry bills, free cab rides for late trips home and the occasional opportunity to celebrate with other bankers at a lavish closing dinner. With all these opportunities to save money and the long hours, analysts often have a hard time finding ways to spend their money.

Career Progression

After about three years of the investment banking grind, many analysts decide to go back to school for their MBA. If they haven’t been turned off by the late nights and long hours, they may decide to continue their career in the industry by taking an associate position in corporate finance. Associate positions are usually geared toward recent MBA grads, but depending on the firm, some analyst may be promoted to the associate level without an MBA.

Should an analyst choose to leave investment banking altogether – and many do – their experience can often be leveraged to move into positions that would normally require more experience. After all, many analysts wrack up double the hours of the average worker and have to perform their work at an intensity level that is among the highest in the business world.

Although many people are attracted to investment banking because of the high pay, the intense lifestyle causes many to leave after just a few years. The real windfall of investment banking for most people is the boost it gives to their career because of the experience they gain.

Before jumping headlong into the corporate finance world, a potential analyst should carefully weigh the realities of the position and ask whether this is really something he or she is looking for – or ready for.