An analyst at an investment bank structures deals, builds financial models, and moves money between companies and investors

An analyst is the entry-level position at an investment bank—usually someone with a bachelor's degree, often in finance, economics, or accounting. They spend most of their time building spreadsheets that show whether a deal makes financial sense, preparing pitch books to sell that deal to clients, and tracking the flow of money through transactions. They are not managing your checking account; they are helping move billions of dollars between corporations, private equity firms, and public markets.

The work is transaction-focused. When a company wants to buy another company, or go public, or borrow money, an analyst builds the models that show what the deal costs, what it returns, and whether it works. They also handle the paperwork side: organizing due diligence documents, coordinating with lawyers, and making sure the numbers in the pitch match the numbers in the contract.

Key Takeaways

  • Analysts build financial models and spreadsheets that show whether a deal makes money, using historical data and assumptions about the future.
  • They prepare pitch books—the documents and presentations used to convince clients that a deal is worth doing.
  • Most analysts work 60 to 80 hours a week during active deals, with quieter periods in between.
  • The job is a two-year training ground; most analysts leave after that to go to business school, private equity, or corporate finance roles.

The three main types of deals analysts work on

Mergers and acquisitions (M&A) is the biggest category. A company wants to buy another company, and the investment bank's job is to advise on price, structure, and how to pay for it. An analyst builds models showing what the combined company is worth, what synergies (cost savings or revenue gains) might happen, and what the buyer should offer. They also prepare the pitch to convince the seller that this buyer is serious.

Capital raising means helping a company borrow money or sell stock. If a company wants to go public (an IPO), an analyst helps build the prospectus—the legal document that tells investors what the company does and what the risks are. If a company wants to issue bonds, an analyst models the cash flows to show investors they will get paid back. The analyst also helps price the offering: how much should the company charge for each share or bond?

Advisory work covers everything else: restructuring a company's debt, selling a division, or helping a private equity firm figure out whether to buy a target. An analyst might spend weeks just gathering data on an industry—how much companies in that space typically earn, what they typically owe, what multiples (price-to-earnings ratios) they trade at. That data becomes the foundation for the pitch.

What an analyst actually does on a typical day

There is no typical day. During a quiet period, an analyst might spend time updating models, reading industry reports, or helping senior bankers prepare for client meetings. During an active deal, the schedule is unpredictable. A partner might ask for a new scenario at 4 p.m., which means the analyst is rebuilding the model until midnight. Then at 8 a.m. the client changes their mind about the deal structure, and the model needs to be rebuilt again.

The core skill is building and maintaining financial models—usually in Excel. A model takes historical financial statements (revenue, costs, profit, cash flow) and projects them forward, usually five to ten years. The analyst plugs in assumptions: how fast will revenue grow? What will margins be? How much will the company need to borrow? The model then calculates what the company is worth and what return an investor would make.

Analysts also spend significant time on due diligence: gathering and organizing information about the target company. This means collecting financial statements, contracts, customer lists, employee records, and anything else a buyer needs to understand what they are buying. An analyst might spend a week just organizing a data room—a secure online folder where all the documents live—so that potential buyers can review them.

How much analysts earn and how long they stay

Analyst salaries vary by bank and by location. A first-year analyst at a major bank in New York or London typically earns a base salary in the range of $80,000 to $110,000, plus a bonus that can equal or exceed the base in a good year. The bonus depends on the bank's performance and the analyst's performance; it is not may provide. Analysts at smaller regional banks or in lower-cost cities earn less.

The job is intentionally designed as a two-year program. After two years, an analyst either moves up to associate (a promotion that comes with a raise and more responsibility) or leaves. Most leave. They go to business school, move to private equity, join a corporate finance team, or switch to a different industry entirely. The two years are meant to teach financial modeling, deal mechanics, and how money moves through transactions—skills that transfer to many other jobs.

Why the hours are long and what that actually means

Investment banking is known for brutal hours, and that reputation is earned during active deals. When a deal is in motion—when the client is negotiating, when documents are being drafted, when the pitch is being refined—an analyst might work 70, 80, or even 100 hours a week. This means arriving at 7 a.m., leaving at 10 p.m., and being on call on weekends.

But the hours are not consistent. Between deals, an analyst might work a normal 50-hour week. During a very quiet period, it might be 40 hours. The unpredictability is part of the job: you cannot plan your personal life around a fixed schedule because you do not know when a deal will heat up or cool down.

The long hours exist because clients expect fast turnarounds. If a company is considering a bid for another company, they want the analysis in 48 hours, not two weeks. That speed requires analysts to work nights and weekends. It also means mistakes are costly—a wrong number in a model can lead to a bad decision that costs millions, so analysts have to be careful and thorough even when they are tired.

The skills analysts need and how they develop them

The primary skill is Excel proficiency. An analyst needs to build models quickly, without errors, and in a way that other people can understand and modify. This is not just knowing how to use formulas; it is knowing how to structure a model so that assumptions are in one place, calculations are in another, and outputs are clear. Most analysts learn this on the job, though some business schools and online courses teach it.

The second skill is financial statement analysis: understanding how to read a company's income statement, balance sheet, and cash flow statement, and what those numbers mean. An analyst needs to spot inconsistencies, understand why a company's margins changed, and project what will happen next. This is taught in accounting and finance courses, but the real learning happens by doing it on actual deals.

The third skill is communication. An analyst has to explain complex financial analysis to clients who may not be financial experts. A pitch book needs to tell a story: here is the company, here is why it is worth buying, here is what it will be worth after the deal. The numbers have to support that story, and the presentation has to be clear enough that a busy executive can understand it in ten minutes.

How analysts move money and what happens when deals close

Analysts do not move money themselves—that is handled by operations and settlement teams. But analysts understand the flow. When a deal closes, money moves from the buyer's bank account to the seller's bank account, usually through a series of wire transfers coordinated by lawyers and settlement specialists. The analyst's job is to make sure the financial model predicted this correctly: that the buyer actually has the cash, that the financing is in place, and that the numbers in the contract match the numbers in the model.

After a deal closes, an analyst might spend a few weeks on post-close work: making sure all the documents were signed correctly, that all the money moved as expected, and that there are no surprises. Then they move on to the next deal.

Frequently Asked Questions

Do analysts work with actual money or just spreadsheets?

Mostly spreadsheets. Analysts build the models and analysis that justify moving money, but they do not execute the transfers or manage accounts. Operations and settlement teams handle the actual movement of funds. An analyst's job is to make sure the numbers are right before the money moves.

What is the difference between an analyst and an associate?

An analyst is entry-level, usually with a bachelor's degree and no prior banking experience. An associate has either completed the two-year analyst program or has an MBA. Associates manage analysts, work directly with clients more often, and earn significantly more. Most analysts leave after two years rather than promote to associate.

Can you become an analyst without a finance degree?

Yes. Banks hire analysts with degrees in economics, accounting, mathematics, engineering, and other fields. What matters more is the ability to learn Excel quickly, understand financial statements, and think logically about numbers. Many banks offer training programs for new analysts regardless of their background.

What happens to the money after a deal closes?

That depends on the deal. In an acquisition, the buyer's money goes to the seller's shareholders. In an IPO, investor money goes to the company. In a bond issuance, the company receives the cash and uses it for whatever they planned—paying down debt, funding operations, or making acquisitions. The analyst's model predicted all of this, but the actual movement is handled by operations teams.

Why do analysts leave after two years if they are good at the job?

The job is designed as a training program, not a career. Two years is enough time to learn deal mechanics, financial modeling, and how transactions work. After that, most people want better hours, more stability, or a different type of work. The skills transfer to private equity, corporate finance, consulting, and many other fields, so analysts have many options.