What are the most effective research strategies for investment bankers?

2 Use reliable sources

Another key step in any research project is to use reliable and credible sources of information. As an investment banker, you need to base your research on facts and evidence, not on opinions and assumptions. Therefore, you need to verify the accuracy, validity, and timeliness of the data and information you collect from various sources, such as financial statements, industry reports, market databases, news articles, and academic journals. You also need to cite your sources properly and acknowledge any limitations or uncertainties in your data and information. For example, if you are using a third-party valuation model, you may want to explain the assumptions and inputs behind the model, the sensitivity and scenario analysis, and the margin of error.

4 Write clearly and concisely

Another important skill for any investment banker is to write clearly and concisely. You need to use simple and precise language, avoid jargon and technical terms, and use short and active sentences. You also need to proofread and edit your research report or presentation for any spelling, grammar, punctuation, or formatting errors. You want to make sure that your research is professional, polished, and persuasive. For example, instead of writing "The company has experienced a significant increase in its revenues and earnings due to its successful expansion into new markets and segments", you may want to write "The company's revenues and earnings grew strongly as it entered new markets and segments".

5 Communicate effectively

The final step in any research project is to communicate your research effectively to your audience. You need to deliver your research report or presentation with confidence, clarity, and enthusiasm. You also need to engage your audience, answer their questions, address their concerns, and solicit their feedback. You want to demonstrate your expertise, credibility, and value as an investment banker. For example, if you are presenting your research to a client, you may want to start with an attention-grabbing introduction that states your purpose, your main message, and your agenda. Then, you may want to present your research findings, conclusions, and recommendations with supporting evidence and examples. Next, you may want to invite your client to ask questions, share their opinions, and discuss the next steps. Finally, you may want to end with a strong closing that summarizes your key points, reinforces your value proposition, and thanks your client for their time and attention.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?