How to Hire an Investment Banker

Why this role matters

Bankers advise clients on decisions such as selling a company, raising capital or buying a competitor. Errors in a model or a pitch book can mislead a client and damage your firm's reputation, and slow or careless execution can lose a mandate. A strong hire produces accurate analysis under pressure, communicates clearly with clients and counterparties, and handles confidential information with care.

Where to find candidates

• Analysts and associates at bulge-bracket, middle-market and boutique banks, often through specialist finance recruiters
• MBA programmes and university finance societies for associate and analyst intake
• Big Four transaction services and valuation teams, who bring due diligence and modelling experience
• Corporate development teams at operating companies, for senior hires who have sat on the buy side
• CFA Institute members and candidates, especially for valuation-heavy roles
• LinkedIn and finance job boards, filtering by sector coverage and product group
• Alumni networks of your own bankers

Skills to look for

Red flags

• Lists many deals but cannot explain their own role or the key valuation drivers in any of them
• Model contains hard-coded numbers and circular references they cannot justify
• Shares confidential details of past mandates in the interview
• Cannot explain how the three financial statements link
• Dismissive about checking work or about junior team members

The interview process

1. 1

   CV and deal sheet review

   Ask for a deal sheet describing their role on each transaction without confidential details. Prepare questions on two of them.

2. 2

   Technical interview

   Cover accounting links, valuation methods and how a given change flows through the statements and the valuation. Keep it to what the role will actually use.

3. 3

   Modelling work sample

   Provide historical financials for a fictional company and ask them to build a simple projection and DCF, then write a short note on the valuation range and the assumptions that move it most. Alternatively, give them a model with planted errors to find. A job simulation of this real work is one option if you want every candidate to face the same case.

4. 4

   Case discussion with a senior banker

   Discuss a hypothetical mandate: which buyers they would approach, how they would position the business and the main risks to the deal.

5. 5

   Fit interviews and references

   Meet the team they would work with. Check references and required registrations, and run your firm's standard background checks.

How to evaluate

• Accuracy and structure of the model
• Quality of the valuation note and the judgement behind assumptions
• Clear, honest account of their role on past deals
• Commercial thinking in the case discussion
• Discretion with confidential information
• Composure and care when working to a deadline

Onboarding

• 1Share your modelling and formatting standards and a library of approved templates
• 2Complete compliance training, information barrier rules and registration steps early
• 3Staff them on a live deal with a clear mentor rather than only pitch work
• 4Review their first models line by line and explain the comments
• 5Set expectations on hours, response times and how work is checked before it goes to a client

Common questions