Career Pathways

Corporate finance deals with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. These roles are ideal with candidates who have interest in finance, valuation, and the specific industry they’re targeting. Strong analytical, teamwork and leadership skills are key, as well as industry-specific experience. There is a high availability of opportunity for corporate finance roles, with moderate to high availability of exit opportunities. Typical pathways include:

• Accounting

  • General accountants are responsible for producing all of the financial records a corporation uses to track its progress internally and to meet government regulations. Such workers also gather all the information needed to compute a company's balance sheet, profit and loss statements, and income statements. They also track the corporate budget, cash flow, and pay all the bills. Usually, your first job in general accounting will be in accounts payable or accounts receivable. Success in accounting might lead you to a position as a controller, overseeing a larger group, aggregating information, or working on portions of the corporate budget.

• Auditing

  • When most people think of an audit, they think of an outside audit-a large accounting firm like Ernst & Young checking the corporate books on behalf of the shareholders. However, most large companies have an internal audit group that regularly visits individual company branches and checks the company's accounting systems. Internal auditors perform the investigative and corrective work that ensures the external auditors don't find anything. The internal audit group reviews the quality of the data, making sure it's both accurate and complete. They also evaluate whether the corporate accounting procedures are effective and universally followed. Finally, internal auditors introduce or revise procedures to improve efficiency and reduce costs.

• Cash Management

  • This is a company's piggy bank. The cash management group makes sure the company has enough cash on hand to meet its daily needs. The group also sees to it that any excess cash is invested overnight by picking the best short-term investment options. And it negotiates with local banks to get regional business units the banking services they need at the best price.

• Corporate Development

  • Corporate development involves both corporate finance and business development. Finance experts in corporate development study acquisition targets, investment options, and licensing deals. Often they assess the best firms to buy or invest in, such as pre-IPO cutting-edge technology companies with complementary products that could either extend the company's product line or mitigate competition.

• Divisional Financial Services

  • In this area, you work with each division's business team to prepare financial plans, make forecasts, and compare actual financial results to forecasts. You may also evaluate the financial consequences of alternative strategies. Responsibilities include everything from analyzing new business opportunities to restructuring a business or developing a capital spending program. The primary concerns are to find better ways of using company assets, reduce costs, and research better methods of forecasting. Financial services evaluates the risks versus potential return of any course of action and develops recommendations so that managers can pick the most profitable strategies, depending on their goals.

• Investor Relations

  • Investor Relations roles involve integrating finance, communication, marketing and securities law compliance for effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation. Investor relations roles involve responding to inquiries from shareholders and investors, as well as others who might be interested in a company's stock or financial stability. Typically, investor relations professionals report directly to the Chief Financial Officer or Treasurer, but can also work closely with an organization’s public relations or corporate communications teams. Many larger publicly traded companies have dedicated investor relations officers who oversee most aspects of shareholder meetings, press conference, and private meetings with investors, and annual reports.

• Tax

  • Activities in this area involve administering taxes (i.e., paying taxes on time-or finding loopholes to avoid paying them) and determining how to decrease the company's tax burden. Responsibilities include working with attorneys on tax litigation, researching tax laws and reporting requirements by nation (if the company is international), and keeping up with new government rules and regulations. Large companies have an entire department dedicated to recommending methods to minimize the tax impact of any business decision such as a new division launch, a capital spending plan, or purchasing a new company. Investments and pensions also need to be managed with an eye toward minimizing taxes. The tax department helps structure transactions, makes recommendations on the timing of acquisitions or sales based on what else will be written off that year, and can decide what corporate reporting structure reduces taxes-for example, creating a wholly owned subsidiary versus having an internal division.

• Treasury

  • The treasury department is responsible for all of a company's financing and investing activities. This department works with investment bankers who help the corporation raise capital with stock or bond sales or expand through mergers and acquisitions. Treasury also manages the pension fund and the corporation's investments in other companies. The department also handles risk management, making sure that the right steps are taken to safeguard corporate assets by using insurance policies or currency hedges.

Leadership Development Programs (LDPs)

• Industries: Healthcare, Consumer Packaged Goods, Retail, Financial Services

• LDPs are rotational programs that are designed to develop business leaders in large organizations. They exist for both summer internships and full-time positions. The structure of these programs varies widely, but corporate finance is a common rotation. Candidates should have an interest in general management, strategy, and an ability to make decisions with a “bigpicture” understanding. Strong leadership ability and experience in large organizations (e.g., the military) are important assets to LDP candidates. There is a high availability of opportunity for these roles, and a moderate-to-high availability of exit opportunities.

Financial services is a client-oriented industry, revolving primarily around banking and investments for private and institutional clients. It encompasses a broad range of organizations that manage money, including banks, credit unions, credit card companies, insurance companies, investment funds, stock brokerages, and other organizations (Wikipedia). Typical pathways include:

• Commercial Banking

  • Commercial bankers provide loans to corporations and large businesses. Can also advise on matters such as cash management and foreign exchange. These roles are ideal for those with interest in debt instruments, client service, due diligence and who value work/life balance. Commercial bankers should be highly analytical and have strong communication skills. There is moderate availability for commercial banking roles and moderate availability for exit opportunities.

• Investment Banking

  • Investment bankers raise capital for individuals, companies, and governments by issuing securities. Investment bankers also advise clients on financing and mergers/acquisitions. These positions are suited for individuals with an interest in capital markets, client-facing roles, and the ability to thrive in intense work environments. Candidates for investment banking should be highly analytical thinkers with exceptional communication skills and a strong work ethic. There is a high level of availability for investment banking roles for MBAs, and a high level of availability for exit opportunities.

• Investment Research

  • Investment research analysts conduct quantitative analysis of investment opportunities (i.e., equities, credit.) Buy-side analysts make recommendations for their own firm’s portfolios. Sellside analysts publish research for clients. Research analysis typically focus on a particular sector. Ideal candidates for investment research should have interest in capital markets and research, and should be intellectually curious with strong analytical and communication skills. Buy-side research analyst positions are highly competitive, with low to moderate availability for opportunity. It is common to start on the sell side and move to the buy side. The availability of opportunity in investment research is moderate to low, with moderate availability for exit opportunities.

• Sales and Trading

  • Salespeople sell their firm’s research and debt & equity offerings to institutional research analysts and portfolio managers. Traders use their firm’s capital to make markets in various securities, including debt, equity, commodities, currencies, etc., for institutional clients. In the last decade, institutional sales & trading desks have decelerated their hiring practices, particularly for MBAs. An MBA does not carry a tremendous amount of value in these positions. A strong passion for the markets, a thick skin, strong communication skills, and a natural ability to network are critical.

• Private Wealth

  • Private wealth professionals manage and grow the wealth of high net worth individuals. Private Wealth Management is generally a division of an investment bank that focuses on individuals and families instead of institutions. Ideal candidates should have an interest in financial planning, capital markets, and investments. Entrepreneurial, sales, and relationship management skills are critical in private wealth management. There is moderate availability of opportunity, although low opportunity for exit opportunities

• Private Equity / Venture Capital

  • Private equity firms source capital from individuals and institutions to acquire equity ownership in companies. Firms provide working capital to target companies to nurture expansion, new product development, or financial restructuring, yielding favorable returns for clients. Ideal candidates should have an interest in capital markets and entrepreneurship. Experience on the sell side (investment banking or research) is usually a pre-requisite. This is a competitive field with relatively low availability for opportunity, but provides high availability for exit opportunities.

Government and not-for-profit organizations seek finance professionals to oversee the financial activities related to programs, projects, funding, budgets, and operations internal to the organization the way corporate finance would function in the private sector. Public sector finance can take the form of investment research roles, project finance, or not-for-profit finance. Typical pathways include:

• Investment Research

  • Investment research analysts in the public sector typically work for either a not-for-profit organization or the government. Analysis may be focused on policy and political risk as well as financial factors. Research can include review of financial statements as well as interviews with stakeholders. Ideal candidates for investment research should have interest in capital markets and research, and should be intellectually curious with strong analytical and communication skills. There is moderate availability for opportunity in investment research as well as for exit opportunities.

• Not-for-profit (NFP) Finance

  • Not-for-profit (NFP) organizations need many of the same skills as private sector corporate finance roles. They must ensure that donations and other sources of funding are used appropriately. By definition, profits must be funneled back into the organization to support the mission. Salaries in the NFP industry tend to be lower but balanced by more generous benefits and a supportive work environment. An ideal candidate should have interest in finance, creative problem-solving, and the industry of focus (e.g., education, health). Industry-specific experience, along with analytical, teamwork, and leadership skills are key to working in not-for-profit finance. There is moderate availability for opportunity in these roles, and moderate availability for exit opportunities.

• Project Finance

  • Project finance involves long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. Idea candidates should have an interest in finance, valuation, risk management, and emerging markets. Sector experience (e.g., energy, infrastructure) along with skills in modeling, analytics, and research are key to project finance. There is a moderate level of availability for opportunity in project finance, and a moderate to high availability for exit opportunities.