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Three Essential Skills for Investment Bankers

Three Essential Skills for Investment Bankers

Danny FriedmanGet to know Danny Friedman, Managing Director, Investment Banking, Consumer

Danny advises that intellectual curiosity, empathy, and an insatiable drive are must-have qualities to succeed in the business.

 

1. Can you describe your role and the key responsibilities you handle on a daily basis?

As a managing director on our consumer investment banking team, I'm focused on working with clients in the food & beverage industry. In that capacity, I help advise our clients on a variety of different types of transactions—typically selling or buying businesses and raising equity or debt capital to help support the growth of the business. Although there’s truly no such thing as a "typical" day in investment banking, my daily responsibilities include working with our clients and counterparties to negotiate and structure transactions, talking to large corporations and investors in the food & beverage industry to understand the trends and categories they’re looking to either increase or decrease their investments in, connecting with potential new clients, and working to mentor and train younger bankers on our team.

2. What motivated you to pursue a career in investment banking, and what keeps you passionate about your work?

I really didn't know anything about investment banking until I had an internship after my junior year of college. I was instantly drawn to the team environment, intellectually challenging work, and being able to work with people I truly respected. What keeps me passionate about what is admittedly a very challenging job is that truly no two days are the same. This industry forces you to continuously learn, adapt, and improve your skills or else you'll be left behind.

3. How has the industry evolved since you started, and what significant changes have you observed?

Middle market investment banking has evolved to truly be a specialist's game. When I started, many bankers were generalists and worked on deals across a wide range of industries. Then bankers began focusing on categories (e.g., consumer, technology, healthcare, etc.), then on specific industries (e.g., household products, active & outdoor, food & beverage), and now there's a premium on knowing a specific vertical (e.g., bakery, snacking, etc.).

4. What skills do you believe are essential for success in your field, and how do you cultivate them?

I think the three essential skills for an investment banker are intellectual curiosity, empathy, and an insatiable drive to succeed. Intellectual curiosity, because we are constantly learning about new businesses, trends, and technologies that impact how our clients compete and how we do our job. Empathy, because we have to be able to relate to both our clients and our counterparties to be able to understand what's driving their desire to pursue a transaction, so we can negotiate and structure an outcome that works for both sides. An insatiable drive to succeed, because this is a challenging job that requires long hours, the ability to deal with and learn from setbacks, and the willingness to do whatever it takes to deliver an exceptional outcome for your client.

5. Can you share a memorable project or deal you’ve worked on and what made it stand out?

Asking for a favorite transaction is like asking who's your favorite child! I remember every transaction I've worked on and can recall specific moments in the deal where we needed to be creative or tenacious to help ensure it closed. I’ve been fortunate to have worked with dozens of clients that I admire and still consider many of them friends and mentors.

6. How do you balance the demands of your job with your personal life, and what strategies do you use to manage stress?

Maintaining a work-life balance in investment banking is certainly challenging, but I think it's critical in being able to have a successful career. When I'm not traveling, I make it a priority to be home for dinner with my family, even though that often means logging back in to do more work afterwards. I've also tried to keep a somewhat regular workout routine and get in the water to surf whenever I can.

7. What advice would you give to someone just starting out in investment banking?

It's hard to distill everything into a sentence or two, but my biggest piece of advice is to come into the job willing to work hard and learn. If you're able to earn the respect of your colleagues and clients, you'll be exposed to incredibly interesting and challenging situations that will keep you on your toes for as long as you stay in banking!

This material is being provided for educational and informational purposes only. D.A. Davidson & Co. is a registered broker-dealer and registered investment adviser that does not provide tax or legal advice. Information contained herein has been obtained by sources we consider reliable but is not guaranteed and we are not soliciting any action based upon it. Any opinions expressed are based on our interpretation of the data available to us at the time of the original article. These opinions are subject to change at any time without notice. Copyright D.A. Davidson & Co., 2024. All rights reserved. Member FINRA and SIPC.

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