Invest in Yourself: Top Investment Banking Simulations to Sharpen Your Edge in 2024 was originally published on Forage.
Investment banking is a popular career path many college students aspire to. But it may not be the right career path for everyone. Enter Forage investment banking job simulations. Our “day in the life” programs can help you figure out if investment banking is the right career for you.
What Is an Investment Banking Job Simulation?
An investment banking job simulation lets you experience what it’s like to work as an investment banker. You’ll try your hand at creating a company profile, analyzing target companies for a merger and acquisition (M&A), and using Excel to create financial forecasts.
While you won’t work with actual clients, you will work with real-world data in some of these job simulations, giving you unique insights into what investment bankers do and how they do it!
Why Should You Do an Investment Banking Job Simulation?
In addition to allowing you to try your hand at investment banking, completing an investment banking job simulation unlocks features you won’t find anywhere else!
First, these investment banking job simulations are sponsored by top investment banks. We work with them to create a job simulation that’s remarkably similar to what you’d do in an investment banking internship or job.
>>RELATED: How to Get an Investment Banking Internship
Second, because these investment banks are invested (no pun intended!) in the program, completing a job simulation demonstrates you’re interested in the company and an investment banking career. While we can’t guarantee anything, this could give you an edge in the hiring process.
And finally, when you complete an investment banking job simulation, you’ll unlock a resume snippet and talking points about what you accomplished that you can tailor for your personal use throughout your job search.
>>RELATED: Learn more about the advantages of enrolling in a Forage virtual job simulation.
Top 7 Investment Banking Job Simulations on Forage
Here are seven top investment banking job simulations available right now on Forage, listed alphabetically. As you look these over, keep in mind that each task may have several subtasks. That subtask could be anything from downloading a document to reading over a lengthy agreement.
1. Bank of America Investment Banking
Hours
4-5
Tasks
5
Skills
• SWOT analysis
• DCF
• Valuation
• M&A screening
Build the practical technical and soft skills you’ll need as an investment banker. You’ll learn how to build relationships, analyze information, and present your recommendations like a pro. In this virtual job simulation, you’re working on Bank of America’s Technology, Telecom & Media team servicing your U.S. client, Webflix, a subscription streaming service.
Forage Find
Hiring alert! Bank of America applications for Global Investment Banking Summer Analyst Program – 2025 are still open!
Task 1
In the first task, you’ll learn how to conduct a SWOT (strength, weakness, opportunity, threat) analysis and understand how it helps you analyze the competition. Then, you’ll create a financial summary using a 10-K.
Task 2
Your supervisor has given you a list of potential M&A targets for Webflix. Your task is to analyze the data and select the best M&A target for your client.
Task 3
In this task, you’ll learn how discounted cash flow (DCF) is used to value targets and more about a sensitivity analysis. You’ll calculate the implied equity and share value for a competitor using DCF, construct a sensitivity table, and share your findings.
Task 4
In the next task, you’ll learn what a company profile is, how to create one, and how investment bankers use it to inform their decisions. You’ll create a chart about the selected target’s EBITDA and summarize your findings for your supervisor.
Task 5
Investment banking is much more than just crunching numbers. Building and maintaining relationships is a crucial part of any investment banker’s success. In the final task, you’ll create a voicemail script for your supervisor that helps her set up a meeting with a future client.
>>MORE: Learn more about internships at Bank of America and what it’s like working at Bank of America.
2. Citi Investment Banking
Hours
5-6
Tasks
4
Skills
• Valuation
• Forecasting
• Modeling
• Enterprise value
Citi investment bankers help clients with operational needs (like payroll and billing), raising money, and providing insights and advice to guide their clients through all kinds of economies.
Task 1
In the first task, you’ll dive into company profiles and learn why they’re essential in investment banking. You’ll review data about Best Buy and create a company profile to present to your supervisor.
Task 2
Next, you’ll learn how to estimate and forecast revenue and expenses and how and why these play a role in valuation. Using a simple income statement model, you’ll build a five-year forecast in Excel.
Task 3
In this task, you’ll learn what a comparative company analysis (AKA spreading comps) is and how to conduct one. As part of the task, you’ll learn where and how to find third-party information to enhance your analysis.
Task 4
In the final task, you’ll summarize key information for decision-makers. Your client is asking Citi to help with the M&A of a target company. You’ll review the information, then write a brief summary of the target’s growth strategy.
>>MORE: Citi Internships Guide: Programs and Application Tips
3. Fidelity International Investment Management
Hours
4-5
Tasks
6
Skills
• Risk analysis
• Company analysis
• Fixed income
• Market research
This investment banking job simulation explores what it’s like to work in investment management. You’ll learn what a stock analyst does and how to build an investment portfolio.
Task 1
You’ll start by learning the fundamentals of investment management and the different types of asset classes. You’ll also learn about Fidelity’s investment banking divisions: asset management, sales and marketing, operations and business strategy, technology, and client services. You’ll explore how and why each of these divisions plays a role in client success, then meet with a client who wants to learn more about the company.
Task 2
Next you’ll learn the differences between active and passive investing and the pros and cons of each. Then you’ll analyze a fund’s performance and make suggestions on how to optimize its performance.
Task 3
In the third task, you’ll learn how to evaluate a publicly listed stock. You’ll complete a SWOT analysis using multiple sources of public information, including an investor report, annual report, news article, and broker reports. Then you’ll compile your findings in a PowerPoint slide.
Task 4
Next you’ll evaluate the financial metrics of six companies and how they are impacted by a global pandemic. To complete the task, you’ll review a relative valuation analysis of Tesla’s bonds and recommend whether to buy, sell, or hold them.
Task 5
Using the Solver function in Excel, you’ll evaluate a fund’s performance using historical risk and return metrics. The current portfolio consists of several funds and your task is to calculate and recommend the optimal portfolio weight for each fund.
Task 6
In the final task, you’ll work as part of the sales and marketing team. You’ll review recent digital trends in Asia and identify ways to better serve your clients.
4. Goodbody Corporate Advisory: Investment Banking
Hours
4-5
Tasks
4
Skills
• M&A
• IPO
• Valuation methods
• DCF
In Goodbody’s Corporate Advisory: Investment Banking virtual job simulation, you’ll learn more about the field of corporate advisory. Working as a corporate finance analyst, you’ll discover how investment bankers access capital, execute strategic transactions, and help their clients succeed.
Task 1
In the first task, you’ll learn about the difference between debt and equity, common sources of capital funding, and different methods for valuing a company.
Task 2
In the next task, learn more about the different types of mergers and acquisitions and why companies use M&A to grow. You’ll also learn more about the advantages and disadvantages of valuation methods, then create a DCF in Excel.
Task 3
In the third task, you’ll learn more about what initial public offerings (IPO) are and why companies pursue them. Using real-world data, you’ll analyze why one company went public while another one went private and write a memo to your supervisor about what you learned.
Task 4
Finally, you’ll learn what comparable transactions and comparable company analysis are and how to use them. You’ll investigate possible M&A targets for your client, CRH, and create a deck summarizing your findings on whether or not company ABC is a suitable target.
5. HSBC Global Banking & Markets
Hours
4-5
Tasks
6
Skills
• M&A
• Due diligence
• Linear regression
• Return rate
This investment banking job simulation includes tasks from HSBC’s investment banking and markets and security services divisions.
Task 1
First, you’ll learn how to find opportunities for growth in new markets through M&A activities and master the difference between organic and inorganic growth. Your client wants to expand into Asia through M&A, so you’ll create a list of M&A targets and explain how each was selected.
Task 2
One of the ways investment bankers help raise funds for their clients is through debt capital markets (DCM). In this task, you’ll analyze recent debt issuance trends and create charts explaining your findings.
Task 3
In the next task, you’ll work on the corporate banking team, analyzing the strengths and weaknesses of a debt refinance. You’ll learn the difference between qualitative factors (like risk) and quantitative factors (like the ability to repay the debt). Then you’ll analyze a deal to identify its strengths and weaknesses and propose solutions to mitigate the risk.
Task 4
Investing involves risk, and in this task, you’ll learn how to reduce risk in your portfolio. You’ll choose one of four investment options to analyze and explain how that option protects your portfolio against a bad market.
Task 5
In this task, you’ll take on the role of salesperson and figure out how to best meet a client’s needs. You’ll review emails from two separate clients, then draft an email to your supervisor advising them on which stocks will best meet each client’s investment goals.
Task 6
Finally, you’ll learn what a custodian bank is and how it operates. You’ll redesign the bank’s operating system using a flow chart that explains the new digital process you’re instituting. Then you’ll call a client and leave them a voicemail explaining why they need to make the shift to digital.
6. JPMorgan Chase Investment Banking
Hours
3-4
Tasks
4
Skills
• M&A
• DCF
• Modeling
• Company analysis
In this investment banking job simulation, you’ll help your client, WorldWide Brewing, expand into Asian markets using M&A.
Forage Find
Hiring alert! JPMorgan Chase is still looking for interns!
Task 1
Start by meeting your client and learn how to find the best M&A targets for them, considering strategic, financial, and structural perspectives. Using information from your team, you’ll analyze the five target companies and determine if they are suitable targets or not.
Task 2
In the next task, you’ll learn more about company profiles, how investment bankers use them, and how the auction process works. Then, you’ll create a company profile for HappyHour Co. using Excel charts with the company’s key financials, valuation, and shareholders.
Task 3
In task three, you’ll learn how investment bankers use DCF models to value targets and build a DCF model for HappyHour Co.
Task 4
Finally, you’ll learn how the unexpected can impact your DCF model. You’ll revise your model to account for a plant fire and possible competitor bid. After updating your model, you’ll write an email to your supervisor with your revised updated valuation and an explanation.
>>MORE: Learn what it’s like working at JPMorgan Chase and about JPMorgan Chase internships.
7. Standard Bank Corporate Investment Banking
Hours
6-7
Tasks
6
Skills
• Market research
• Identify risk
• Forecasting
• Financial analysis
In the Standard Bank investment banking job simulation, you’ll step into the role of a team member and enhance your investment banking skills.
Task 1
In the first task, you’ll learn what it’s like to work as a debt solutions analyst and learn more about Standard Bank’s divisions.
Task 2
In the next task, you’ll meet your client, Sea Harvest, and prepare a one-page company profile for your supervisor.
Task 3
Next you’ll learn how to conduct due diligence on a client. You’ll learn how to use a company’s annual report to identify risk and understand the company’s value and how this due diligence helps the bank price a loan and give context to the company’s projected financial performance.
Task 4
In this task you’ll learn more about what a market analysis is and why you should include third-party resources as part of yours. You’ll analyze several third party resources and create an analysis of the market risks and conditions for Sea Harvest, then email your supervisor with your findings.
Task 5
In the next task, you’ll learn what financial models are, how they’re created, and then you’ll create one. Using Sea Harvest’s information, you’ll use Excel to predict the company’s cash flow.
Task 6
Finally, you’ll learn why it’s important to keep on top of current market trends. You’ll review the bank’s monthly report, then analyze and comment on several key points with an eye toward what it means for Sea Harvest and the bank.
Invest in Your Future Today
Enrolling in and completing a virtual investment banking job simulation is an excellent way to enhance your skills now for future success. It can give you an edge in your job search, and a head start in your career.
Not sure if investment banking is the right career for you? With hundreds of virtual job simulations across a variety of sectors, there’s bound to be one that’s right for you. Check out Forage’s whole course catalog today.
Image credit: Canva
The post Invest in Yourself: Top Investment Banking Simulations to Sharpen Your Edge in 2024 appeared first on Forage.
