Sales' Investment Side: Why It's So Compelling

The investment side of sales is an interesting topic for many reasons. Firstly, it involves working with different stakeholders and negotiating over large businesses and assets, which can be fascinating and exciting. Secondly, as you move up in investment banking, the work changes significantly. Analysts and Associates do mostly grunt work, such as Excel and PowerPoint, while VPs spend more time on project management and client relationships. At the MD level, it becomes almost entirely a sales job. Investment banking is also known for its gruelling hours, with analysts expecting to be in the office for 80+ hours per week and always being on call. Finally, there is a phenomenon in the industry where certain types of buyers (banks) are very interested in certain types of sellers (wealth managers) due to favourable business dynamics.

The opportunity to develop client relationships

Developing client relationships is an important part of the investment side of sales. As you move up in investment banking, the work changes significantly. Analysts and Associates do mostly grunt work, such as Excel, PowerPoint, deal process tracking, and pitch book creation. VPs spend more time on “project management” and begin to develop client relationships. Bankers at the Director or SVP level do even more of this, and at the MD level, it becomes a near-100% sales job where bankers meet executives and wine and dine them to win deals.

Developing client relationships is an opportunity to put your strategic negotiation skills to use. You get to work with different stakeholders and negotiate over large businesses and assets. It's also a chance to further develop your modelling abilities and teach yourself fundamental business analysis.

The investment side of sales is also about serving clients, providing liquidity, and managing the risk that results. You get to be involved in setting markets in a variety of distinct asset classes, but you aren't betting on the markets (at least directly).

Senior salespeople sell more and work with more important clients. This is an opportunity to work with high-profile clients and develop your network.

The chance to work with different stakeholders

In investment banking, the work changes as you progress. Analysts and Associates are responsible for grunt work like Excel and PowerPoint, while VPs focus more on project management and building client relationships. At the Director or SVP level, bankers spend even more time on client relationships, and at the MD level, it becomes almost entirely a sales role, with bankers wining and dining executives to secure deals.

The variety of stakeholders you engage with in investment banking provides opportunities for strategic negotiations and relationship-building. It also allows you to influence and shape decisions made by high-level executives, which can be exciting and empowering.

Additionally, working with different stakeholders can expose you to diverse perspectives and industry insights. This can enhance your understanding of the market and help you make more informed investment decisions. It also enables you to build a network of valuable connections, which can benefit your career in the long run.

Overall, the chance to work with different stakeholders in the investment side of sales offers a dynamic and challenging environment, where you can develop valuable skills in negotiation, relationship management, and strategic decision-making.

The ability to set markets in a variety of distinct asset classes

The investment side of sales is an interesting career path for many reasons. One of the most appealing aspects is the ability to set markets in a variety of distinct asset classes.

In sales and trading, you are the market to a certain extent. As a liquidity provider, you are responsible for setting markets in securities. This means that you get to work with different stakeholders and negotiate over large businesses and assets. For example, you might be dealing with high FCF, cross-sell, and recurring revenue.

It's important to note that the markets being dealt with are not single-name equities, unless you're one of the few people on the cash equities desk. Instead, you are involved in setting markets in a range of asset classes, from securities to equities. This provides a diverse and exciting work environment, where no two days are the same.

While it's true that the work can be demanding, with senior salespeople selling more and working with more important clients, it's also a role that offers the opportunity to develop valuable skills in financial modelling and business analysis. For those with a passion for the markets, the investment side of sales offers a unique perspective and the chance to be at the forefront of market movements.

Overall, the ability to set markets in a variety of distinct asset classes is a key attraction of the investment side of sales. It offers a challenging and rewarding career, where individuals can make a real impact on the market and develop their skills in a dynamic and ever-changing environment.

The potential for more interesting work

At the MD level, investment banking becomes almost entirely a sales job, with bankers meeting executives and trying to win deals. This involves strategic negotiations and working with different stakeholders to negotiate over large businesses and assets.

Some people are also drawn to the investment side because they are interested in the markets, particularly the equity markets. In sales and trading, you are to some extent the market, as a liquidity provider setting markets in securities. This means you get to be involved in setting markets in a variety of distinct asset classes.

The investment side of sales can also offer the opportunity to further develop modelling abilities and learn fundamental business analysis. For example, financial modelling specialisation can be useful in investment banking, as it allows you to work with different stakeholders and negotiate over large businesses and assets.

The opportunity to be involved in strategic negotiations

As you move up in investment banking, the work changes significantly. Analysts and Associates are often responsible for grunt work, such as Excel and PowerPoint, but as you progress, you will spend more time on project management and client relationship development. At the Director or SVP level, bankers are almost 100% focused on sales, meeting with executives and negotiating deals.

Being involved in strategic negotiations means working with different stakeholders and negotiating over large businesses and assets. This requires a strong understanding of business analysis and financial modelling, as well as the ability to adapt and think on your feet.

For example, in an investment banking interview, a candidate might express their interest in the deal-making aspect of the role. They might highlight their experience in sales and their appreciation for the importance of strategic negotiations. This demonstrates a keen interest in the investment side of sales and the opportunity to be involved in high-level decision-making.

The investment side of sales, therefore, offers a unique opportunity to be involved in strategic negotiations, influence key business decisions, and develop strong client relationships. It is a challenging and rewarding career path that requires a diverse skill set and a passion for deal-making.

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