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The moment you hear the term Investment Banking many perceptions and
questions may arise like
How much salary one can expect in this field of Investment Banking?
Is it true that Investment Bankers earn money in tonnes and their bonus is 3-4 times
that of their very handsome salary?
Help buyers find clients and interested sellers to buy the flat, negotiate the lowest
price, do the supporting paper work, ensure that the title is clear
2.
Help sellers find the clients and interested buyers to sell their flat, negotiate the
highest price, do the paper work, get the registration done etc
So how does property brokers earn commissions (maybe 1% to 10% of the
transaction value).
Now in this context think about Investment Bankers as Financial brokers.
Investment Bankers help companies raise capital for projects, expansion etc and
companies may look at various channels like Initial Public Offerings (IPO), Followon Public Offering (FPO), Private Placements etc. In addition, Investment Banking
job also includes Mergers and Acquisition Activities where they play the role of
Financial Brokers and help companies find suitable acquisition targets or suitable
buyers for their companies.
So how does Investment Bankers earn obviously commissions (maybe 1% to
10% of the transaction value). Are you thinking how much Investment Bankers
may have made in the recent Twitter IPO?
The above analogy is very simplified and in technical terms Investment Banking
involves the following
1.
2.
3.
4.
5.
2.
3.
Sales & Trading of Securities Investment banking people link with buyers and
sellers for the purpose of buying and selling of securities from their own account for trading
the securities.
4.
Fund or Debt Raising for companies Investment Banks also help companies to
determine the best strategy or the best place to raise the debt and also helps companies to
prepare corresponding documents .The banks also takes care of regulatory compliance .
Master Excel for Investment Banking In your career as an Investment Banker, you
would be using Excel day and night. So you should be very comfortable with using excel, not
only that you should know the advanced techniques and shortcuts, which would save a lot of
your time. The primary objective here should be that you are able to perform Financial
modeling using Excel efficiently.
2.
3.
Corporate Finance and Valuations Equity Valuation is the process of estimating the
potential market value of a financial asset or liability. Valuations are required in many
contexts including investment analysis, capital budgeting, merger and acquisition
transactions, financial reporting, taxable events to determine the proper tax liability, and in
litigation. You must learn two important methods of Investment Banking valuations (a)
Intrinsic Valuation Method (DCF) which means primarily determines the value by estimating
the expected future earnings from owning the asset discounted to their present value (b)
Relative value models determine the value based on the market prices of similar assets.
4.
5.
Mergers & Acquisitions Modeling & Pitch Book Mergers and acquisitions modeling
is one of the most important work of Investment Bankers. It include excel based accretion
dilution analysis, synergy analysis etc. In this you must learn how to merge two balance
sheets using Purchase method of Accounting, do synergy analysis, accretion dilution
analysis on practical case studies. Also, you must try to gain learn how to prepare Pitch
Book of merger modeling.
6.
Initial Public Offering (IPO) Modeling & Fund Raising Option All companies require
capital for investment in Projects, expansion, hiring etc. Investment Bankers help companies
raise capital through equity dilution like IPO, FPO or private placements. You should learn
about the basics of IPO modeling and how IPO valuations are done using Relative and DCF
valuations.
While working as a equity research analyst, we make various valuation related graphs. The
above data can be used to make the Price to Earnings Graph (PE graph). We can plot the
historical PE ratios. However, just the PE ratio graph may not give us the required
interpretation.
We may look at even a better version of the PE ratio graph known as Band Charts which is
essentially made on the same data.
The excel download explains you the basics of Band Chart. The following Steps are
employed for making the Band Chart
Step 1 Download from Bloomberg or other related databases, the Price and the forward
EPS for historical data
Step 2 Calculate the PE ratio for the historical data
Step 3 Calculate the average, maximum and the minimum of the PE ratios
Step 4 Find the implied price at average, maximum, minimum PE ratio using the following
formula
For better visual effects, you may like to add one PE line between maximum and
average (called as Upper) and likewise a line between minimum and average (called as
Lower)
In which company we should make investment for better returns i.e. comparative analysis
Has the company had a change in direction that is loss of customers, expansion etc.
Identifying of Strategic and Business Plans through finding strengths and weaknesses.
Be relatively simple
Evaluate Risks
Financial Modeling forms a core of various other Finance areas like Equity Research,Investment
Banking, Credit Research etc. If you are searching for a Financial Modeling Online Course/Training
then you may consider one of our Financial Modeling courses here.
One applications of Financial Modeling may be Business Valuation that is deciding the fair
value for a business . Financial Modeling will help participants to reach to a price they are willing to
pay or accept for the selling business.
To decide the Cost of Capital if a company is going to invest in a new project then Financial
Modeling for it will give analysis for debt/equity structure and expectation in return by investors ,thus
setting benchmarks for project to meet .
Capital Budgeting -Financial Modeling helps companies determine alloting resources for
major expenditure or investment etc.Purpose increasing the value for the firm.
Project Finance
Industrial comparatives
For most obvious results we need to follow the Firms standard format
Using modular spreadsheet blocks will make changing each sheet easier without affecting
others.
Proper protection should be given to the sheets and workbooks from unauthorized usage.
Labeling sheets, columns and rows with their applicable headings so that files will become
easy to follow.
Better Document your assumptions
Linking wherever required will be a good practice such that when the inputs change, the
outputs will be changed automatically
It will save lots of hassles at final stage or at working stage
Facilitate Data entry at one place only
Avoid retyping of data, entering it once as a source and referencing it will make good sense.
Its always better to link cell value rather than writing numeric value for calculations.
Good Practice is using Consistent Formulas
Using formulas and functions will be accurate and will save time.
Do not copy formula from one sheet to another as it will create links in files.
Avoid unnecessary blank columns and rows as this can be tedious at the time of making
tables or other charts.
Creating Templates will be beneficial
Formatting Charts
Creating a VBA Style Guide containing rules and details about coding standards is good
Format and Label Clearly
Its very important to format cells appropriately i.e. we should follow standard practices eg. we
should use symbols for currency , percentages values etc. , which will make model easier for reading.
Try using different background colors for distinguishing input areas and calculation parts
Sales Growth: Sales growth assumption in each period defines the change from the previous
period. This is simple and commonly used method, but offers no insights into the components or
dynamics of growth.
2.
Inflationary and Volume/ Mix effects: Instead of a simple growth assumption, a price inflation
factor and a volume factor are used. This useful approach allows modeling of fixed and variable costs
in multi product companies and takes into account price vs volume movements.
3.
Unit Volume, Change in Volume, Average Price and Change in Price: This method is
appropriate for businesses which have simple product mix; it permits analysis of the impact of several
key variables.
4.
Dollar Market Size and Growth: Market Share and Change in Share Useful for cases where
information is available on market dynamics and where these assumptions are likely to be
fundamental to a decision. For Example: Telecom industry
5.
Unit Market Size and Growth: This is more detailed than the preceding case and is useful
when pricing in the market is a key variable. (For a company with a price-discounting strategy, for
example, or a best of breed premium priced niche player) e.g. Luxury car market
6.
Volume Capacity, Capacity Utilization and Average Price: These assumptions can be
important for businesses where production capacity is important to the decision. (In the purchase of
additional capacity, for example, or to determine whether expansion would require new investments.)
7.
8.
9.
Revenue based on installed base (continuing sales of parts, disposables, service and addons etc). Examples include classic razor-blade businesses and businesses like computers where
sales of service, software and upgrades are important. Modeling the installed base is key (new
additions to the base, attrition in the base, continuing revenues per customer etc).
10.
Employee based: For example, revenues of professional services firms or sales-based firms
such as brokers. Modeling should focus on net staffing, revenue per employee (often based on
billable hours). More detailed models will include seniority and other factors affecting pricing.
11.
Store, facility or Square footage based: Retail companies are often modeled based on the
basis of stores (old stores plus new stores in each year) and revenue per store.
12.
Occupancy-factor based: This approach is applicable to airlines, hotels, movie theatres and
other businesses with low marginal costs.
b) Financial Modeling Costs projections Drivers include:
1.
Percentage of Revenues: Simple but offers no insight into any leverage (economy of scale or
fixed cost burden
2.
Costs other than depreciation as a percent of revenues and depreciation from a separate
schedule: This approach is really the minimum acceptable in most cases, and permits only partial
analysis of operating leverage.
3.
Variable costs based on revenue or volume, fixed costs based on historical trends and
depreciation from a separate schedule: This approach is the minimum necessary for sensitivity
analysis of profitability based on multiple revenue scenarios
c) Financial Modeling Operating expenses
1.
2.
3.
1.
This is one of the few income statement items that is driven by balance sheet information. A
interest schedule is generally developed to i) calculate interest received on cash and short term
investments and ii) calculate interest expenses arising from all types of debt. Interest rate
assumptions are needed.
2.
Ending balance of previous year can be used to calculate interest expenses to avoid circular
reference in excel
3.
Average balance can be used as well (it will give circular reference though)
e) Financial Modeling Income taxes:
1.
Effective tax rate is generally used. Effective rate is calculated as Taxes paid / Pre-Tax
income.
2.
For future years, either the marginal tax rate equivalent to the country of incorporation is
taken or if the effective rate is much lesser than the marginal tax rate then during the initial years, tax
rate can be low but gradually would have to be moved to marginal tax rate. For example, In India,
marginal corporate tax rate is 33%.
Assume an Inventory turnover number for future years based on historical trend or
management guidance and then compute the Inventory using the formula given below
Modeled as % of sales
Fixed Assets (Property, Plant and Equipment)
Separate schedule is prepared taking into account various components
Assume Payables turnover days for future years based on historical trend or
management guidance and then compute the Accounts Payables using the formula given below
Long term Debt: Usually modeled as part of debt schedule (please refer debt
schedule on next page)
Key feature of the debt schedule is to use the Revolver facility and how it works so
that the minimum cash balance is maintained and ensures that the Cash account does not become
negative in case the operating cash flow is negative (Companies in investment phase who need lot of
debt in initial years of operation Telecom cos for example)
Overall range of Debt to equity ratio should be maintained if there is any guidance by
the management
Debt balance can also be assumed to be constant unless there is a need to increase
the debt
Notes to the accounts would give repayment terms and conditions which need to be
accounted for while building the debt schedule
For some industries, like Airlines, Retail etc Operating Leases might have to
capitalized and converted to debt. However, this is a complex topic and beyond the scope of
discussion at this point
The aspirants of Financial Modeling Course can be everybody who wants to explore the world
of finance and get involved in money related decision making. These people can be Executives,
Business planning and strategy deciders, Managers working with Banks, Equity Researchers, Project
Its an added advantage for those people who are pursuing CA, MBA, CFA, FRM and
Commerce graduates
Also the candidates having Degree, Diploma, in technical fields like B .TECH or Engineering
who wants to make a career in finance
Any individual who just want to gain knowledge out of passion or curiosity
Now after knowing Who can do Financial Modeling Course now let us look at what all it need , to go
for a financial modeling training .
Basics of Finance and accounting concepts (e.g. fundamental, valuation concepts etc.)
Thirst to learn financial conceptual terminology, general business procedures and self
confidence.
Usage of Excel
Though even if you know nothing about above mentioned knowledge then do not get dishearten it
simply means that you are supposed to take a course which starts from basics and covers MS Excel
in detail as Excel is very essential for Financial Modeling so there is no escape and this part should be
strong If you want to check out one such Online Course offered by us which covers everything
exhaustively then you can click here
Equity firms, investment bank (to value companies for mergers, LBOs(Leveraged Buyout),
IPOs(Initial Public Offering) etc).
Generally an equity research department is divided into departments, to cover the various
sectors of market eg. banking, mining, I.T., energy, healthcare, consumer sectors.
Fundamental Analysis
Technical Analysis
Fundamental Analysis Fundamental Analysis deals with finding out intrinsic worth of a
company stock, financial strength and comparing it with the market price to identify whether
that stock is more or less in weight age as compared to the market value. In technical
language whether the stock is overpriced or under priced.
For better results, analyst would suggest buying financial security if it is underpriced and sell
if it is overpriced because there is a possibility that the market price will be equal to intrinsic
worth of the stock.
Technical Analysis Technical Analysis is the study of past price changes in the hope of
forecasting future price changes. It is mainly considered by carrying out two factors which is
price and volume. It is generally observing the trend that how the stock price is moving i.e.
whether it is going upwards, downwards or in the same limit range. This is very simple
technique of predicting the price movement as per the past performance.
Economic Analysis
2.
3.
4.
5.
6.
7.
Presentation or recommendation
The questions which are answered by Corporate Finance are decision making
about capital, finding the sources of capital, decisions regarding payment of
dividend, Finance involved in Mergers and Acquisitions processes of the
companies.
Corporate finance includes planning, raising, investing and monitoring of finance
in order to achieve the financial objectives of the company.
Raising capital via the issue of other forms of equity, debt and related securities for
the refinancing and restructuring of businesses
Raising debt and restructuring debt, especially when linked to the types of
transactions listed above
Return on investment
Leveraged buyout
In terms of Mergers and Acquisitions, LBO is the very commonly used concept. LBOs can
have many different forms such as Management Buy-Out(MBO), Management Buy-In (MBI),
Secondary Buyout and tertiary buyout.
Growth Stock
A growth stock as the name suggests is a stock of a company which generates significant
positive cash flow and its revenues are expected to increase more rapidly than the
companys from the same industry.
Efficient-Market Hypothesis
The general meaning of this Efficient Market Hypothesis is, the financial markets are
efficient in terms of information. The three major forms of this hypothesis is: weak, semistrong, and strong.
The weak form titles that prices on traded assets reflect all past publicly available
information. The semi strong form reflects all publicly available information and that prices
instantly change to reflect the new public information. Strong form claims that the prices
instantly reflect even hidden information.
Capital Structure
The firm can use the self-generated fund as a capital or can go for external funding which is
obtained by issue of debt and equity. Debt financing off course comes with an obligation
which is to be made through cash flows regardless of projects level of success. Whereas
equity financing is less risky with respect to cash flow payments but has a consideration in
the ownership, control and earnings of the organization. Management should use optimal
mix in terms of capital structure with due consideration to the timing and cash flow.
Working Capital
In order to sustain ongoing business operations, corporate needs to manage its working
capital. Working capital is the subtraction of current liabilities from current assets. Working
capital is measured through the difference between cash or readily convertible into cash
(Current Assets) and cash requirements (Current Liabilities).
Assets
Assets on Balance sheet are classified as Current assets and long terms assets. The
duration for which certain assets and liabilities a firm has in hand is very useful.
Bank Loans
Depending on the duration for which the loan is availed the bank loan is classified as short
term(one year or less) loans and long term(known as term) loans.
Debt capital
Debt can be obtained through bank loans, notes payable or bonds issued to the public. For
debt through Bonds requires an organization to make regular interest payments on the
borrowed capital until it reaches its maturity date after which it must be paid back in full. In
some cases, if the interest expenses cannot be made by corporations through cash
payments then the firm may also use collateral assets as a form of repaying their debt
obligations.
Equity Capital
Company can raise the capital through selling the shares in the stock market. Thus investors
which are also called as shareholders buys the shares with a hope of getting an appropriate
return (dividends and increased shareholders value) from the company. Thus investors
invest only into those companies which have positive earnings.
Preferred stock
Its a combination of properties which are not possessed by equity and a debt instruments.
These stocks do not carry voting rights but have a priority over common stock in terms of
dividend payments, assets allocation at the time of liquidation.
Cost of Capital
It is the rate of return which must be realized in order to satisfy investors. Cost of debt is the
return required by the investors who invests in the firms debt. Cost of debt is largely related
to the interest the firm pays on its debt. Whereas cost of equity is calculated as:
Cost of Equity = Risk Free Rate+Beta*Equity Risk Premium
The return from the project must be greater than the cost of the project in order for it
to be acceptable.
The weighted average cost of capital (WACC) is defined as the weighted average cost of the
component costs of debt, preferred stock and common stock or equity. It is also referred to
as the marginal cost of capital (MCC) which is the cost of obtaining another dollar of new
capital.
WACC = E/V*Re+D/V*Rd(1-Tc)
Where:
Re = cost of equity
Rd = cost of debt
E = market value of the firms equity
D = market value of the firms debt
V=E+D
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
Tc = corporate tax rate
Financial Ratios
Certain financial ratios are very helpful in evaluating firms performance. These a ratios are
used to measure:
1.
Leverage
2.
Profitability
3.
Turnover rates
4.
Return on Investments
5.
Liquidity
Cash Cycle
The time between the date the inventory (or raw materials) is paid for ant the date the cash
is collected from the sale of the inventory is termed as Cash cytcle.
Dividend policy
Payment of dividend is mainly related with the dividend policy which is determined on the
basis of financial policy of the company. All the matters regarding the issue of dividends,
amount of dividends to be issued is determined by the companys excess cash after
payment of all the dues. If the company has surplus cash and if it is not required by the
business, in that case company can think about payment of some or all of the surplus
earnings in the form of dividends.
Sustainable Growth
Companys Sustainable growth rate is calculated by multiplying the ROE by the earnings
retention rate.
Risk Premiums
As we know the risk that a firm can face is Business Risk, Financial Risk and Total corporate
risk.
Business Risk : This risk associated with a firms operations. A measure for the business
risk is the asset beta, which is also known as unlevered beta.
Financial Risk: This risk is associated with the firms capital structure. It is affected by the
firms financing decision.
Total Corporate Risk: This is the sum of Business and Financial risks and it is measured
by the equity beta which is also called as levered beta.
Share Buyback
Sometimes, firm has extra cash on hand, so it may choose to buy back some of its
outstanding shares. This eventually has an added advantage, as firm has its own information
which market doesnt have. Therefore, a share buyback could serve as as ingal that the
share price has potential to rise at above average rates.
You would have heard a lot about this term Corporate Finance, if you belong to the finance
domain. Corporate Finance forms the most basic component of how a business is run. I am
sure you would be interested to know why. But before we dig into the details of this broad
area, lets take this example. Suppose you want to start a business. Let me ask you this,
apart from the skills and ideas that you would require to begin with it, what is the other most
basic element required? Yes its quite simple, the answer is money. Any economic activity
whether big or small requires finance, rightly considered to be the life blood of business.
There are various sources through which you would raise funds such as your personal
savings, borrowing from friends, family etc. You would not only require finance to start your
business as promotional finance but also as development finance to sustain in the long run.
This same concept applies to corporations. Read on to get a gist of all you wanted to know
about Corporate Finance and any inhibitions you have had regarding it.
Business involves decisions which have financial consequences and any decision that
involves the use of money is said to be a corporate finance decision. Corporate finance is
one of the most important part of the finance domain as whether the organization is big or
small they raise and deploy capital in order to survive and grow. There are various roles that
corporate finance plays, which are very interesting and challenging, one of the main roles is
that of being a finance adviser. Corporate finance in investment banks is different from
departments like sales or trading, as in they are not trading or making markets but rather
they help companies with certain financial situations. In simple words they act as a broker or
consultant when companies need to raise capital, are considering to merge or buy another
company or want to issue debt all of which may enhance the value of their company. This
can comprise helping to manage investments or even suggesting a mergers and
acquisitions (M&A) strategy. Along with this, the corporate finance people at the investment
bank will help the M&A deals go through as well.
In short as a corporate financier you would be working for a company to aid them find
sources through which funds could be raised, expand business, plan the future course of
actions, manage money and ensure sound profitability and economic viability.
The objective of maximizing the value of the corporation while minimizing the
risk is the soul of corporate financial theory.
This principle revolves around the simple concept that businesses have resources which
need to be allocated in the most efficient way. The first and important decision that needs to
be made in corporate finance is to do this wisely, i.e. decisions that not only provide revenue
opportunities but also saves money for future. This also encompasses the working capital
decisions such as the credit days to be allotted to the customers etc. Corporate finance also
measures the return on a planned investment decisions by comparing it to the minimum
tolerable hurdle rate and deciding if the project/investment is feasible to be undertaken.
Financing Principle:
Most often businesses are funded with either debt or equity or both. In the investment
decision that we earlier discussed once we have finalized the mix of equity and debt and its
effects for the minimum acceptable hurdle rate, the next step would be to determine if the
mix is the right one in the financing principle section.
The job here for the corporate financier is to make sure that the business has right amount
of capital and the right mix of debt, equity and other financial instruments.
In order to determine the optimal mix we need to study conditions where the optimal
financing mix minimizes the acceptable hurdle rate. We also need to analyze the effects on
firm value due to the change in capital structure. After we have defined the optimal financing
mix, next we need to consider would be whether it would be a long term or a short term
financing. We then include other considerations such as taxes and land up with strong
decisions on the structure of financing.
The risk return tradeoff Riskier assets yield higher expected returns.
Dividend Principle:
Businesses reach a stage in their life cycle where they grow and mature and the cash flow
they generate exceeds the expected hurdle rate. At this stage the company needs to
determine the ways of rewarding the owners with it. So the basic discussion here is that if
the excess cash should be left in the business or given away to the investors/owners. A
company that is publicly held has the option of either pay off dividends or buy back stocks.
Corporate finance is a very vast area of finance. There are so many fundamentals and
concepts which need you should have a knack of. Lets understand a few of them;
1.
Capital budgeting
Capital budgeting is the process of planning expenditures on assets (fixed assets) whose
cash flows are expected to extend beyond one year. Managers study projects and decide
which ones to include in the capital budget.
The budget is a plan which details projected cash inflows and outflows during future
period.
The most common approaches that are used in project selection are discussed below:
Net Present Value (NPV):
This method discounts all cash flows (including both inflows and outflows) at the projects
cost of capital and then sums those cash flows. The project is accepted if the NPV stands
positive.
NPV = [CFt/ (1 + k) t]
Where CFt is the expected cash flow at period t, k is the projects where CFT is the expected
cash flow at period t, k is the projects cost of capital and n is its life.
Cost of capital
Capital is an essential factor of production, and has a cost. The suppliers of capital require a
return on their money. A firm must evidently ensure that stockholders or those that have lent
the firm money, such as banks, receive the return that they seek. The cost of capital is
significant for a firm to calculate, as this is the rate of return that must be used when
evaluating capital projects. The return from the project must be superior than the cost of the
project in order for it to be acceptable.
One of the methods to calculate the cost of capital is Weighted Average Cost of
Capital (WACC). The weighted average cost of capital (WACC) is defined as the weighted
average cost of the component costs of debt, preferred stock and common stock or equity. It
is also referred to as the marginal cost of capital (MCC) which is the cost of obtaining
another dollar of new capital.
4.
Working capital management involves the relationship between a firms short-term assets
and its short-term liabilities. The goal of working capital management is to ensure that a firm
is able to continue its operations and that it has adequate ability to satisfy both maturing
short-term debt and upcoming operational expenses. The management of working capital
encompasses managing inventories, accounts receivable and payable, and cash.
5.
Measures of leverage
Leverage, in the sense we use it here, refers to the amount of fixed costs a firm has. These
fixed costs might be fixed operating expenses, such as building or equipment leases, or
fixed financing costs, such as interest payments on debt. Greater leverage leads to greater
variability of the firms after-tax operating earnings and net income.
With this we have touched upon the important concepts of corporate finance. There is lot
more to learn in this vast area.
As we all know that business make money which has to be managed well, which is when
corporate finance team comes into picture. Corporate finance professionals are accountable
to manage the money of the organization i.e. to know from where to source it, deciding how
to spend it to get the maximum returns at the lowest possible risk. They seek to find ways to
ensure flow of capital, increasing the profitability and decreasing the expenses. They have to
monitor the other departments on their expenditure and if the company is in a position to
take the risk of additional expenditure. They explore the best ways to help company expand
whether it is through acquisition or investing internally.
Well there is a different career profile of corporate finance in Investment Banks, here the
corporate financiers must not only be aware about the finance world, but also have clear
viewpoints on investing, stocks and how to value companies. They can use their creativity
here by listening to what the client wants to achieve and then suggesting interesting and
potentially revolutionary ways they can go about making their thoughts a reality. Yes, the
corporate finance team does get a lot of the glory and while salaries can go sky high, youll
have to work hard for it.
Are you thinking to pursue career in corporate finance and interested to know more on this?
Read this article on Corporate Finance Jobs.
A career in Corporate Finance is quite challenging, and the demand for this field is
accelerating with time. It has great career prospects if you feel you would enjoy doing all that
we have discussed above. Hope this would have helped you in understanding all you
wanted to know about Corporate Finance. All the Best!!!
You will become a team player which help you work with people
Tackling business problems will make you ready for any challenges.
Financial planning
Working on budgets
Analyzing competitors
Treasurer
Your JD as a treasurer will involve supervision of Treasury department. Treasury Department
is involved in financial planning, raising funds, cash management and acquiring and
disposing of assets.
This position commands both analytical skill and the ability to manage and motivate your
colleagues.
Credit Manager
A Credit Manager establishes policies for granting credit to suppliers, sets procedures for
collecting credit and considers whether to securitize receivables.
You need a thorough understanding of the financial statements and good knowledge of your
customer.
Cash Manager
Following will be your duties if you are a cash manager
Benefits Officer
Excited to be a benefits officer, but dont know what you JD is? Here is a list of things on
which you will work upon
Controller
A controller is mainly involved in financial planning, accounting, financial reporting and cost
analysis. You will also get involved in property, revenue, benefits, derivatives, lease and joint
interest accounting. You may also work on creating and forecasting models to project
revenues and costs.
You really require an extensive accounting experience to get this position.
Be Positively Different
Always remember that if you are good at your job then you can create enormous value.
Rising Packages
Pay throughout corporate finance areas is increasing. The compensation includes salary,
bonus, stock options exercised etc.
Value-Based Management
Corporate finance jobs demands the professionals to get involved in value based
management. Here they find out how and where the shareholder value is being created in
each of a companys activities. Some of the most innovative firms are now using value
management.
Leadership Skills
Companys want more and more leaders. The financial leaders should have experience with
the dynamics of the financial markets and be innovators in that market as well. He should be
a strategic planner, a problem solver and an innovative leader.
Naukri
Times Jobs
Monster India
Placement India
careerbuilder
Shine
Jobs DB India
Career Age
Starting salaries in corporate finance with a bachelors degree may range from
$35,000 to $50,000.
Starting salaries with an MBA degree may range from $55,000 to $80,000.
Entry level job with a bachelors degree will give you a position of junior financial
analyst.
Entry level job with an MBA degree will give you a position of a financial analyst.
Education Background
MBA