The Top 5 Investment Banking Books You Need to Read

Erin Lee

The Top 5 Investment Banking Books You Need to Read

1. Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Joshua Rosenbaum and Joshua Pearl

In this book, Joshua Rosenbaum and Joshua Pearl look at some of the most common valuation methodologies used on Wall Street. Additionally, they focus on fundamentals and review key financial concepts everyone should know to succeed in investment banking. A lot of people refer to valuation as an art and a science – this book will teach you how to perfect your judgment skills. “The foundational concepts, definitions, and use of fairly simple and accessible language make this a great choice for those who are newer to investment banking. One particularly useful aspect of this book is the in-depth examples that show you how to create Excel spreadsheets, which are heavily used in M&A.”[3]

Joshua Rosenbaum has been working at RBC for 7 years where he is the head of Industrials and Diversified Services. In the past, he was also a managing director at UBS. He graduated from Harvard Business School with his MBA. He is a speaker on M&A, capital markets, and investment banking. He provides insight on sector trends, valuation, and outlook.[4] Joshua Pearl is currently the Chief Investment Officer at Hickory Lane Capital Management. In the past, he has worked as a director of leveraged finance at UBS and as a managing director at Brahman Capital. He graduated from Indiana University in 2003 with a BS in business.[5]

2. Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity by Paul Pignataro

This book will teach you how to create a financial statement model step by step. It will provide downloadable models that will help you prep for investment banking. Some of the key models that you will be working on are the three statement models, depreciation schedule, discounted cash flow, debt schedule, working capital structures, etc.[8] You will also have access to common interview questions to help solidify your fundamentals.

Paul Pignataro is the CEO of the New York School of Finance. In the past, he has worked with Morgan Stanley, J.P. Morgan, and TH Lee Putnam Ventures which have gained him experience in business mergers, acquisitions, restructuring, asset divestitures, asset acquisitions, and debt and equity transactions of oil, gas, and utility.[6] He graduated from NYU with a double degree in mathematics and computer science.[7]

3. Investment Banking Explained: An Insider’s Guide to the Industry by Michel Fleuriet

“Step in Mr. Fleuriet – a half banker half academic. In this book, he breaks the IB industry apart and shows you exactly what everyone does.”[2] You will get a complete overview of modern investment banking. Fleuriet defines key financial terms needed for investment banking. He also reviews structures and strategies and analyzes the strategy in each of the main functional areas of an investment bank[10] – specifically, “you will know the history of banking, the difference between S&T v M&A v Capital Raising, plus how it all interconnects.”[2]

Michel Fleuriet served as a chairman of HSBC France as well as the head of investment banking at Merrill Lynch France. He was a professor of finance at HEC and he currently holds a Ph.D. in law from the Sorbonne and a Ph.D. in Finance from Wharton. Currently, he is a member of the board of the French private equity fund Xerys and an adjunct professor of finance at Wharton.[9]

4. Vault Career Guide to Investment Banking by Tom Lott

This book will give you a detailed look at the different lifestyles of investment banking professionals – from the all-nighters to building the perfect financial model. This book will teach you how to become the best analyst and how to pitch influential stocks.[11]

Tom Lott is currently the director of client relationships at AmWINS. In the past, he has worked with Royal & SunAlliance as the national director of risk management services and customer management. He graduated from the University of Maryland in 1986.[12]

5. The Business of Investment Banking: A Comprehensive Overview by K Thomas Liaw

This book explores the changes and discusses opportunities for students and professionals interested in finance. K Thomas Liaw gives an update on the overall investment banking industry – shifts in practices, trends, regulations, and statistics, and he explains these shifts in detail. This book reflects the current state of investment banking and will definitely help those who are looking to advance their career in this industry.[13]

K Thomas Liaw is a professor of finance at St. John’s University. He earned his Ph.D. from Northwestern University.[13] He has published several books about capital markets and investment banking. He has also published articles relating to mergers and acquisitions, banking, repurchase agreements, swaps, and market risk. He has his own consulting practice that focuses on investment management.

Sources

  1. Vaidya, Dheeraj. “Investment Banking Books.” WallStreetMojo
  2. “38 Best Investment Banking Books.” Get Into Investment Banking
  3. “7 Best Investment Banking Books.” Financial Analyst Insider, 27 July 2019
  4. https://www.amazon.com/Joshua-Rosenbaum/e/B001NPCF04%3Fref=dbs_a_mng_rwt_scns_share
  5. https://www.linkedin.com/in/joshuapearl/
  6. https://books.google.com/books/about/The_Technical_Interview_Guide_to_Investm.html?id=4qTlDQAAQBAJ&source=kp_author_description
  7. https://www.linkedin.com/in/paulpignataro/
  8. https://www.amazon.com/Financial-Modeling-Valuation-Practical-Investment/dp/1118558766
  9. https://www.coursera.org/instructor/michel-fleuriet
  10. https://www.amazon.com/dp/0071497331?tag=wallstreetmoj-20&th=1&psc=1&geniuslink=true
  11. https://books.google.com/books/about/Vault_com_Career_Guide_to_Investment_Ban.html?id=79n4GAAACAAJ&source=kp_book_description
  12. https://www.linkedin.com/in/tlott/
  13. https://www.wiley.com/en-ar/The+Business+of+Investment+Banking:+A+Comprehensive+Overview,+3rd+Edition-p-9781118004494



About the Author

Erin Lee

Erin Lee is an undergraduate student at Baruch College, majoring in finance with minors in mathematics and psychology. She currently serves as an Equity Research Analyst intern at Romero Research and a community leader at Romero Mentoring. Erin is also a FIG analyst at Baruch’s Investment Management Group where she helps manage the club’s ~$830,000 AUM. She is interested in blockchain technology, cryptography, and music theory. In her free time, Erin enjoys playing the piano, playing basketball, and learning more about the stock market. She is an Analyst Prep Program, 2020 alum.