Careers in finance – Corporate finance (Part 1)

Along with all the questions about trading and investing, one common question we keep getting from youngsters is about career opportunities in finance. In this series of videos, Karthik explains the various career opportunities in corporate finance, investment banking, public markets and private markets.

Apart from the trading and investing community we also have a large student community that tracks varsity to learn finance one common question that keeps coming up from the student community is to figure how they can build a career in finance finance as an industry is incredibly vast there are several domains and subdomains within finance each offering exciting career

Opportunities hi this is and in this video i’ll try and help you understand the landscape of finance and the different day-to-day activities you would do in a finance job and also help you understand the skills you would require to master such roles foreign opportunities in finance for all except for maybe cas and those aspiring a job in retail bank this is

Because cas and bank job aspirants usually take a guided path early in their careers and have things sorted the problem is mainly for the non-ca janta having said that cas also have the flexibility to jump between a mainstream ca career and everything else we would discuss in this video the best way to understand career opportunities in finance is by actually laying

Down the industry’s landscape and then mapping your skills your interest to this landscape broadly speaking you can divide finance into three mainstreams you have the corporate finance you have the investment banking and finally you have the public and private markets let’s start by understanding career opportunities within corporate finance career opportunities

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In corporate finance are things you would do within the finance department of a regular company it could be any company it could be a company dealing with pharmaceuticals automobile hospitality or even i.t you typically start your career in corporate finance as a financial executive or a financial analyst working within the finance department of a company headed by

The cfo i’ll try and help you understand the different jobs that are available for a financial analyst within the corporate finance world think about a company here it could be any company let’s say a car manufacturing company what are the things that you would imagine the finance department of this company would do we are dealing with a car manufacturing company

Here so there must be a manufacturing unit which means to say that there must be some sort of financial activity in terms of setting up the manufacturing plant and procuring the machinery further the funds required to set up the plant procuring the machinery should either come in the form of debt or equity for the sake of this video let’s assume funds come in via

Debt debt implies there are financial interactions between the company and various other financial institutions including banks the debt can be a simple bank loan or it could be a complicated structured product where the debt itself converts to equity at a later stage these interactions and decisions are made by the cfo and the cfo’s team of financial analysts as

A financial analyst you need to figure out the best way possible to raise debt financing for the company now let’s extend this thought to other financial activities now because the company manufactures cars it must deal with raw materials either procured locally or overseas therefore the procurement department must license with the finance department to determine

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A budget a financial analyst should allocate capital and prepare a budget keeping the company specific variables in consideration budgeting extends beyond procurement if the company plans a new project the new as a financial analyst will be expected to build a project financing report you will probably have to develop a project finance report and project financial

Deliverables and figure out the project’s irr and how it would contribute to the company’s top line further analysts must also monitor costs and develop cost models to track expenses the cost model should be sensitive to fluctuations in the input costs of commodities especially source from international markets this means you as a financial analyst should be well

Versed with tracking commodity prices both locally and internationally and factors that would influence the price of these commodities as a financial analyst you should also work on working capital management and capex planning cycle and as you can imagine this is where bulk of the action happens in the corporate finance world working capital management means you

Will have to deal with receivables and payables which means you will have to interact with the internal sales team to get a sense of the receivables and also interact with vendors and suppliers if all such activities interests you then you should consider a career in corporate finance apart from excellent communication skills you should also be good in financial

Statement analysis and also financial modeling which further implies you need to be good with excel as well your typical journey in the corporate financial world starts with you working as a financial executive or a financial analyst moving on to become a financial controller manager deputy manager and eventually becoming the cfo itself of course if the company

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You’re working with is large and listed then there are other aspects of corporate finance that opens up things like treasury management corporate action planning and investor relation kicks in you will even have to work on improving the key financial metrics of the company and this usually comes in as suggestions that you would give out to other departments within

The company so in a nutshell that’s carrier opportunities in corporate finance for you in the next video i will discuss career opportunities in investment banking and public and private markets do continue to watch foreign

Transcribed from video
Careers in finance – Corporate finance (Part 1) By Zerodha Varsity