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Derek Lim
Hometown:
Fresno, California
Class:
2002
Major:
Economics for Business and Management
Position:
Investment Banking Analyst, Citigroup Global Markets, New York (January
2004-January 2006)
Citigroup Global Markets is the Corporate and Investment Banking arm of Citigroup, which provides investment banking, retail brokerage, corporate banking and cash management services to multinational corporations.
I obtained the position in December 2003 (one year after graduating) after working for RSM Equico, a boutique investment banking firm located in Costa Mesa, CA. I am currently a 3rd Year Analyst in the Mergers & Acquisitions (M&A) Group. I spent my first year in the analyst program in the Consumer/Retail group. My position entails working on M&A transactions, either on the buyside or sellside, working on M&A related pitches or on strategic advisory roles with large corporate clients. I primarily work on M&A transactions, which entails extensive financial modeling, due diligence, performing complex financial analysis and drafting offering memorandums (execution type work). I always work in teams and depending on the size of the deal, my deal teams can be as small as 4 bankers or as large as 10 bankers when you account for the different groups in the bank (Leveraged Finance, Equity Capital Markets). Typically I work very closely with the Senior Management of the client (CEO, CFO, COO, Controller, Head of M&A) on all engagements. This interaction depends on the deal. On Sell-side engagements (where we have been retained to advise the client on a sale of the company or the sale of a division), I can expect to work very closely with the management in developing the financial model and gaining access to all of the relevant information needed to build the model and for the drafting of the OM and teasers that will go out to prospective buyers.
I enjoy the client interaction, the travel to cool places (I have been to every major city in the U.S. and Europe) and the challenging aspects of the job. The most gratifying part of the position is announcement day for your M&A deal. That is when the deal is publicly announced. I would also say that the high level of responsibility that is given to me at such a young age and stage in my career is also very rewarding. As an Analyst, you are expected to know everything there is to know about the numbers, so your Managing Directors and even your clients rely on your knowledge and expertise. As a 3rd year Analyst, I am staffed more now as an Associate. That means, I am usually staffed on a project with a 1st year Analyst, which allows me to take on even more responsibility on my deals. I am usually the point person on the deal, reporting directly to my Director or Managing Director and handling the day to day responsibilities of the deal.
Investment Banking is a very demanding field. The hours are long and the work can be extremely challenging. You will face strict deadlines, often with multiple deadlines. So you must be able to juggle projects simultaneously. However, it is extremely exciting and rewarding. The compensation and perks are also generous given the long hours that you will put in.
After 2-3 years in the Analyst program, you can usually write your own ticket in terms of what you want to do next. Most people go on to Private Equity firms (buyside) or seek promotion to Associate. Others go to Hedge Funds, Corporate Development or Business School. The point is that you are extremely marketable after your time in Investment Banking.
You can expect to develop a strong skill set in finance and accounting. You will master Excel and PowerPoint. You will also be able to learn how to better manage your time and develop superior client management skills. In addition, you will develop numerous business contacts that will last a lifetime.
The best way to prepare for this position while at Oxy: This position is highly quantitative/financial, so take as many financial, accounting, economics and math courses as possible. If you can, take an advanced accounting and financial analysis course from a Junior College or another institution. During the interviews, they will ask you very technical/finance questions. Therefore, reading books and studying advanced valuation methodologies will help you tremendously. I would also encourage students to read the Wall Street Journal, apply for the Blyth Fund and try to obtain an internship in finance. You should also reach out to alumni that are in Investment Banking or finance. They can be extremely helpful. It is extremely competitive to obtain an Analyst position, so doing anything you can to differentiate yourself from the others will work to your advantage.
For more information, e-mail Derek at dlim@fenwaypartners.com
December 9, 2005