An analyst at an investment bank builds financial models, writes pitch documents, and prepares data for the senior bankers who pitch deals to clients.
The role is part research, part spreadsheet work, part writing. An analyst takes raw financial information about a company—its revenue, debt, assets, growth rate—and turns it into the numbers that support a deal recommendation. If a bank is pitching a merger, an analyst builds the model showing what the combined company might be worth. If a client is considering a bond offering, an analyst calculates the pricing and risk. The work is technical and repetitive, but it is the foundation that senior bankers present to clients.
Most analysts work in one of three divisions: mergers and acquisitions (M&A), capital markets, or corporate finance. M&A analysts model what happens when two companies merge. Capital markets analysts help companies issue stocks or bonds and price them correctly. Corporate finance analysts work on loans, restructurings, and other advisory work. The day-to-day tasks overlap—all three build models and write documents—but the type of deal changes.
Key Takeaways
- Analysts spend most of their time building financial models in Excel and writing pitch books that explain deal recommendations to clients.
- The role requires no prior finance experience; banks hire analysts straight from college and train them on the job.
- Analyst positions are typically two or three years long, after which people move to associate roles, business school, or other jobs.
- The work is important date-driven and hours are long during active deals, but slower periods exist between transactions.
Building financial models is the core technical skill
An analyst spends a large portion of each day in Excel building financial models—spreadsheets that project a company's future cash flows, calculate its value, and show how a deal changes that value. A model for an M&A deal might show what the merged company's revenue could be in five years, what its operating costs would be, and therefore what profit it could generate. The analyst then calculates what that profit stream is worth today, which becomes the valuation the bank uses to pitch the deal.
Models are built from assumptions. An analyst might assume a company's revenue grows 8 percent per year, that operating margins stay at 15 percent, and that the company needs to reinvest 5 percent of revenue to maintain that growth. Change one assumption and the entire valuation shifts. Senior bankers often ask analysts to run multiple scenarios—what if growth is only 5 percent, or what if margins compress to 12 percent—so they can show clients a range of possible outcomes.
The models themselves are not original analysis. Analysts pull data from financial statements, industry reports, and comparable company databases. The skill is in organizing that data correctly, linking the spreadsheet cells so changes flow through automatically, and catching errors before the model reaches a client. A single wrong formula can throw off a valuation by millions of dollars.
Pitch books and client presentations require writing and design
Once the model is built, an analyst writes and designs the pitch book—the document the bank presents to a client to convince them to do a deal or hire the bank. A pitch book for an M&A deal might be 50 to 100 pages and include the bank's investment thesis (why the deal makes sense), comparable company analysis (what similar deals have sold for), financial projections, and valuation summaries. Each page combines text, charts, and tables.
Analysts do not write the strategy or the main argument—senior bankers decide that. But analysts write the supporting sections, pull the data, create the charts, and may support every number in the book ties back to the model. They also handle the formatting and design, which means learning the bank's templates and style guidelines. A pitch book that looks sloppy or contains inconsistent formatting damages the bank's credibility with clients.
The writing is technical but must be clear. An analyst might write: "The target company has grown revenue at a 12 percent compound annual growth rate over the past five years, driven by market share gains in the North American segment and price increases in Europe." That sentence conveys specific information—the growth rate, the time period, and the drivers—in a way a client can understand and act on.
Data gathering and due diligence support the deal process
When a deal moves forward, an analyst helps gather and organize the information the bank needs to understand the target company. This is called due diligence. An analyst might request financial statements from the target company, organize them by year, and flag inconsistencies or unusual items. They create data rooms—organized digital folders where all deal documents live—and track which documents have been reviewed and by whom.
Analysts also prepare management presentations. Before a deal closes, the buyer's leadership team usually meets with the target company's management to ask questions. An analyst prepares a briefing document summarizing what the buyer should know about the target, what questions to ask, and what red flags to watch for. This requires reading through hundreds of pages of financial and operational documents and distilling them into a few pages of key points.
The schedule is deal-dependent and often long
An analyst's schedule depends entirely on where deals are in their lifecycle. During the pitch phase—when the bank is trying to win a client—hours are long and unpredictable. An analyst might work until midnight updating a model because a client asked a new question, or work through a weekend to finish a pitch book for a Monday morning presentation. During slower periods between deals, the schedule is more normal.
Most analysts work 60 to 80 hours per week on average, with spikes to 100+ hours during active deals. The work is often important date-driven because clients need answers quickly and senior bankers need materials ready for client calls. An analyst might receive a request at 4 p.m. for a revised model and a new chart by 8 a.m. the next morning.
The intensity is part of the job design. Banks use analyst roles as training grounds and as a way to staff deal teams with people who can execute quickly. The expectation is that analysts work hard for two or three years, learn the business, and then move on—either to a promotion within the bank, to business school, or to another industry.
Analysts typically have no prior finance experience
Investment banks hire analysts straight from college, usually with a degree in finance, economics, accounting, or mathematics, but not always. Some analysts come from engineering, physics, or liberal arts backgrounds. Banks care more about problem-solving ability and attention to detail than about specific knowledge. They train new analysts on financial modeling, accounting, and deal mechanics during the first few months on the job.
The learning curve is steep. An analyst's first month involves learning Excel shortcuts, understanding how to read a balance sheet, and learning the bank's internal systems and processes. By month three, they are usually building straightforward models. By month six, they are contributing to real client pitches. By year two, they are often the person other analysts turn to for help on complex models.
Career progression and what comes next
An analyst role is typically a two or three-year position. After that, an analyst can be promoted to associate, which is a more senior role with more responsibility for deal strategy and client relationships. Associates still build models and write documents, but they also manage junior analysts and have more input into how the bank approaches a deal.
Many analysts leave investment banking after two or three years. Some go to business school, using the banking experience as a credential for MBA programs. Others move to private equity, hedge funds, or corporate finance roles at large companies. Some stay in banking and work toward managing director roles, which typically takes 10+ years. The analyst role is often a stepping stone rather than a career destination.
Frequently Asked Questions
Do I need an MBA to become an analyst?
No. Banks hire analysts directly from college and provide training. An MBA is not required for the analyst role. Some analysts pursue an MBA later, after working for two or three years, but that is a choice, not a requirement.
What software do analysts use besides Excel?
Excel is the primary tool, but analysts also use Bloomberg Terminal (a financial data platform), FactSet (for company research and comparable analysis), and the bank's internal deal management systems. Most banks also use PowerPoint for presentations and Word for writing. Training on these tools is provided on the job.
Can you work as an analyst part-time or remotely?
Most analyst roles are full-time and office-based, especially during active deals when senior bankers need analysts available for quick revisions and client calls. Some banks have moved to hybrid schedules post-2020, but the expectation is usually that analysts are in the office several days per week during deal work.
How much do analysts earn?
Analyst salaries vary by bank and location. At large investment banks in major cities, first-year analysts typically earn a base salary in the range of $80,000 to $120,000, plus a bonus that can equal or exceed the base salary in profitable years. Smaller banks or regional offices pay less. Compensation is tied to the bank's profitability and deal flow.
What is the difference between an analyst and an associate?
Analysts are entry-level roles for college graduates. Associates are the next level up, typically filled by people with two to four years of experience or MBA graduates. Associates have more responsibility for deal strategy, manage junior analysts, and have more client interaction. The technical skills overlap, but associates focus more on business development and less on spreadsheet execution.