Finance in MBA opens roads to some highly-rewarding careers in the industry including investment banking, management consultancy, and private equity.
Finance is a complex subject to master. Putting financial skills to the application is even more challenging and requires practice and exposure. Not surprising that each finance professionals are rewarded handsomely for their services.
An MBA in finance opens the following roles for graduates.
- Financial Analyst
- Financial Manager
- Chief Financial Officer (CFO)
- Private Equity Analyst
- Investment Banking Analyst
Let’s discuss the role and responsibilities of each of the above-mentioned designations.
This is an entry-level role for finance graduates. All organizations with a finance function require financial analysts who can oversee financial matters. Financial Analysts are not involved in decision making, but require a good understanding of financial analysis. This role paves way for higher and prestigious roles in the finance industry including private equity, investment banking, and hedge funds.
Some tasks that a financial analyst performs are —
- Collection of operational and financial data
- Set standard cost for price and services
- Track status of expenditure by looking at predicted and actual financial data
- Perform cost analysis and offer suggestions
Once you graduate from a business school, this will be the most common role, companies will seek you for. Financial managers oversee a company’s financial health. At mid-size companies, they may report to managing director, CEO, or operations managers. Their responsibilities are —
- Reviewing financial reports created by analysts
- Guiding financial analysts to perform their tasks more efficiently
- Standardization of internal financial processes
- Liaise between upper management and financial team members
- Prepare regulatory and legally mandated report
Chief Financial Officer
This position lies at the highest rung of the corporate ladder. Chief Financial Officers report to the CEO or board of directors, depending on the structure of the organization. They have the final say in all finance-related matters.
Responsibilities of a Chief Financial Officer are —
- Build financial policies
- Secure funding and spearhead merger and acquisitions depending on the stance of the organization
- Show direction and guide organizations toward goals based on finances
- Set up indicators for production, productivity, quality, and customer experience from a finance perspective
- Maximize return on invested funds
Private Equity Analyst
A career in private equity is highly rewarding. No surprise that the private equity analyst role is one of the most sought after roles among finance graduates. Top private equity firms hire analysts who have an in-depth understanding of accounting, financial modeling, and valuations. Private equity analysts perform research on privately held companies and use their financial modeling skills to check the suitability of the investment and suggest investment recommendations to their firm. Private equity professionals play a high-stakes game.
Responsibilities of PE Analysts are —
- Gather financial and crucial data on companies
- Perform due diligence, financial analysis, and estimate valuation
- Review financial statement of the company under consideration for investment
- Suggest hedging strategies for investors to maximize profit and minimize price volatility
- Provide input on strategic development and acquisition with specific industry
Investment Banking Analyst
An MBA in finance opens opportunities in investment banking opportunities too. An investment banking analyst role and responsibilities are similar to private equity analysts, except their research also include publicly listed companies. An investment banking analyst performs necessary research for investment bankers to help make investment decisions. They also collaborate with investment bankers on M&A and corporate restructuring matters.
Responsibilities of an investment banking analyst are —
- Review and analyze financial data of company stocks, bonds, and credit trends required for making investment decisions.
- Make presentations for informal discussions among colleagues as well as informal presentations to persuade clients
- Perform administrative tasks like setting up meetings with clients, print reports, book tickets for travel among other things.
Opportunities after finance MBA depend on graduates’ strengths and chances that employers see it easily. So regardless of the role you seek after graduation, you must ensure that you are consistently improving your finance skills by exposing yourself to practical skills. For instance, investment banking and private equity certifications and internships are valuable credentials for graduates aspiring for a career in investment banking and private equity. And not keep yourself restricted to textbooks.