by Brian DeChesare Comments (122)

The Investment Banking Summer Intern Success Guide: Yes, You Better Get My Coffee

The Investment Banking Summer Intern Success Guide: Yes, You Better Get My Coffee

“Always carry shoe polish, in case said analyst’s shoes need a shine. Forget your blackberry holster – what you need is a coffee cup holder for more than four cups – this way, you’ll need only make a single trip to Starbucks each morning when you bring your team coffee.”

..and Some More Investment Banking Summer Internship Donts, The All-Nighter

Despite explaining what you’ll actually do as a summer intern and even how to dominate your investment banking summer internship, summer internship questions have continued to roll in.

Sure, you want to do as much deal-related work and modeling as possible, but how do you get there?  How do you avoid just going to Starbucks and the dry cleaner for me all summer?  (Not that I would make a summer intern do that, of course)

How Work Is Assigned To You

Senior bankers and staffers are more hands-off with Summer Analysts than they are with full-time Analysts and Associates.  Sometimes interns are “assigned” to an Analyst over the summer; in other banks and groups Analysts will “claim” interns to help out on certain projects.

In any case, though, the full-time Analysts give you work and decide what you do.  So you need to keep us happy.

I always have a list of unfinished tasks, but only a few of them are high priority at any given moment.  And as I’ve mentioned before, there are basically 3 types of work in investment banking: deals, pitches and random stuff.

When a summer intern starts working, I will most likely give him or her whatever is at the bottom of my priority list: the random stuff.

Sometimes this means profiles (compiling information on companies and making it look nice in PowerPoint), sometimes it means comps (reviewing financial statements and inputting numbers into Excel) and sometimes it means finding the projected rate of oil production increase in the Alberta oil sands over the next decade.

What To Expect At First

Don’t expect to build an LBO model or draft an IPO S-1 registration statement right away.  You have no technical training, no one knows how competent you are, and who knows, you could have gotten the internship just because your dad is the CEO.

I would laugh if an intern asked about learning an LBO model his first day on the job.  I don’t care how many accounting or finance classes you’ve had or how many $3,000 “learn investment banking” seminars you’ve taken, you’re not going to know how we build models right away, and you will therefore not get that type of work at first.

Take the work you’re given, put a smile on your face, and do it without complaining.  When you’ve proven that you can do the basics well, you will be given more interesting tasks, and when you have proven yourself with those, you will get even more responsibility.

Don’t Screw Up

Screwing up repeatedly will kill your progression toward doing more interesting/useful work.

You might think, “If I’m just starting how can I possibly NOT make mistakes?  I don’t know anything yet.”

The short answer is “ask a lot of questions.”  No one will fault you for asking questions – as long as you ask the right people.

Never ask anyone above the Analyst level a question.  Bothering your MD with a question on comps will invariably make him think you’re an idiot.  Restrict your questions to other summer interns and Analysts.

If you ask questions on anything and everything you’re not sure of, you dramatically reduce the chances of screwing up.

Also, always print out and check your work before submitting it to anyone.  Mistakes are much easier to see when you print out your work, so you should always do this.

A Tale Of Two Summer Interns

Here’s a brief story of 2 interns in my group last summer:

The Worst Of Times

One intern arrived and, due to my workload at the time, he actually got a client-related project to work on.  It consisted of around 20 comps, and although I consider anything with the word “comp” in it to be grunt work, it was at least going to a client for an actual deal.

His task was straightforward: look at financial projections from equity research and enter in a few numbers on a spreadsheet for each company.

He finished and sent me the file – and the numbers were completely wrong.  I don’t mean “off by 0.1” wrong or “forgot to add back one-time charges” wrong, I mean “revenue jumped around from $4 million to $400 million to $40 million in the span of 3 years” wrong.

Unless it’s a biotech company (and it wasn’t), you could tell something’s off by looking at that for 2 seconds.

After that incident, I rarely gave him much substantial work.  If he couldn’t even copy numbers correctly, there’s no way I could trust him to draft 50 page documents or build multi-property models for casino companies.

The Best Of Times

Another intern, by contrast, had a lot of grunt work at the beginning.  One time I had him do about 20 profiles because I didn’t have time and it was already well past midnight.

Although he had a lot of boring work at first, he rarely made mistakes and when he did, he always fixed them and never repeated the same mistake twice.

By the end of the summer, I had taught him so much about modeling that he knew more than some of the full-time Analysts.

I knew that he was reliable and that if he had more advanced skills he would save me days of time; as a result he learned a lot and performed the best out of all our interns.

The Consequences

Screwing up repeatedly has a chain reaction – no one at an investment bank gossips more than the junior guys, so if the work I give you is completely wrong, every other Analyst will know about it.

Usually the Analysts order dinner and go to a conference room to gossip and discuss the events of the day (you don’t just get fired in conference rooms).

Intern performance is a common discussion topic during the summer.  And don’t worry: even if we don’t discuss interns during dinner, we’ll do it over instant messenger or forward emails to each other all day.

But the real consequence of not doing well in your summer internship is not getting a full-time offer.  In a bear market this can be the kiss of death, though you can sometimes find a way to spin it favorably.

The Good News

The good news is that no matter how poorly you perform in a summer internship, it’s rarely the end of the world.  You can usually still find another internship the next year or a full-time job in the fall when you go back to school.

Still, it’s to your advantage to do as well as possible so that you have more options down the road.

And so that you can avoid being the Starbucks/dry cleaning delivery service.

M&I - Brian

About the Author

Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron.

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  1. Hi,

    Love your website. Lots of professional insight. Quick question about who to ask questions. I’m interning at a small investment bank in New York. The team is only 10 people and I get my work from the head of investment banking directly. So should I still ask other analysts for assistance, or do I ask him directly about the requirements? Thanks.

    1. For higher-level questions, you can ask the head of IB, but for technical/Excel/PowerPoint/accounting/other questions like that, stick to the analysts.

  2. Hi, I have a somewhat unique situation I need advice about. I am a sophomore Finance student at a large state school but I have 57 hours meaning with one extra class I will graduate in May of 2017. I have a 4.0 GPA and am beginning to network through alumni at my school. I have no relevant work experience in the field of finance but I am a presidential and governors scholar within my state. I also have attended financial modeling and valuation boot camps to learn more about investment banking. Should I go for an IB internship this year or attempt to get a different finance internship this year and then shoot for a bulge bracket internship next year? Also what are my chances of getting a bulge bracket/boutique internship being from a non target with a 4.0 GPA?

    1. Also this is my second year at this University but I obtained 27 hours through the International Baccalaureate program at my high school which is why I have 57 hours. I also did receive an International Baccalaureate diploma if this would help at all.

    2. Always aim for an IB internship if you can get one. If you can’t, aim for a PE internship at a local firm and if you can’t do that, go for PWM or something else in asset/wealth management.

      Your chances of getting a bulge-bracket internship are not great without internship experience. If you do get a very relevant internship your chances go up, but it will still be tough coming from a non-target. A regional boutique would be easier, but even that is challenging if you don’t have previous work experience.

  3. Hi,

    Love your website, its fantastic ! Anyways, I’m a First year student studying BA Economics, got a summer internship at PwC (valuation & strategy). I had a look at BIWS and was really interested. However, I was wondering when would be the best time to take up the course?

    Should I take it now so I can prepare for a corp. fin or m&a internship the next summer? Please give me some advice here. Thank you in advance !

    1. M&I - Nicole

      Will, thank you for your message and interest in our courses. I’d probably go through the course when you have the most free time. It takes around 140-150 hours to complete our Fundamentals course, and I think its best to go through the materials when you are not as stressed out/in time crunch mode so you can ask questions and really understand the materials in-depth; I personally take my time when I go through any course materials.

      So if you’re thinking of an internship in corporate finance next summer, I may take the course this summer if you have the time, just before full time recruiting. Once full time recruiting starts, you’ll probably be very busy. Of course, we also have a guide so if you are in a time crunch mode, we can guide you on which modules to focus on so that is not a problem.

      Since you’ll have access to free upgrades and lifetime access to the courses, I think you wouldn’t have anything to lose by starting the course earlier. If you don’t have a financial modeling background, you may find the Fundamentals course most useful to you:

      Please let us know if you have other questions!

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