Investment Banking & M&A
How to become a investment banking analyst
Build the models behind mergers, acquisitions and capital raises — the most competitive entry door in finance, and the feeder for private equity.
7 required steps · Free to start
- $101,910
- Median pay
- 6%
- Projected growth
- 429,000
- People in the role
2024
2024–34
2024
Figures from the U.S. Bureau of Labor Statistics, quoted with their framing. Full context and sources below.
The numbers
What the data actually says
Every figure is quoted with the framing its publisher used. Tap a source chip to see exactly what was measured and when we last checked it.
Median pay
$101,910per year
BLS median annual wage for financial analysts (SOC 13-2051) in May 2024 — half earned more, half less. This occupation covers analysts across banking, funds and corporate finance; BLS does not break out IB or PE pay, and entry pay at large banks and funds is widely reported to sit well above this median.
Projected growth
6%2024–34
BLS projects employment of financial analysts to grow 6% between 2024 and 2034, which it classifies as faster than the average for all occupations.
People in the role
429,000jobs in 2024
BLS counted 429,000 financial analyst jobs in 2024, projected to grow by 25,100 over the decade.
Openings each year
29,900projected per year
BLS projects about 29,900 openings for financial analysts each year, on average, over the 2024–34 decade.
The role
What the job actually is
Investment banking analysts do the analytical work behind deals: valuation models, pitch materials, due diligence and the long process work of a merger, acquisition or capital raise. The hours are famously long and the entry funnel is narrow and timetable-driven — banks recruit interns up to two years ahead, and the internship converts to the full-time seat. In exchange, the role is the strongest general credential in finance: two years as an analyst opens private equity, hedge funds, corporate development and more. Licensing happens after hiring, not before — your bank sponsors the SIE and the securities exams it requires once you start.
Typical entry-level education is a bachelor's degree, and no prior work experience in a related occupation is listed as typical.
Before you commit
The parts people wish they'd known
This is our read on the career, not a research finding — labelled so you can weigh it accordingly.
Reality check
Our recommendationThe hours are the price, and they are real
Analyst years at large banks are notorious for late nights and lost weekends. People who thrive treat it as a two-year investment with a known payoff; people who burn out expected a job.
Decide what the two years are buying you before you start, not during.
The path
Every step, in order
7 required steps. Sign in and we'll track which ones you've done — several tick themselves as you study.
- 1
Understand what IB analysts actually do
Valuation models, pitch decks, due diligence and deal process work — for M&A, IPOs and capital raises.
The hours are the most demanding in finance. Deciding whether the trade — two brutal years for the strongest credential in the industry — is worth it to you is the real first step.
- 2
Learn the recruiting timeline — it is earlier than you think
Banks recruit summer interns as much as two years ahead, and the internship is the job interview.
Missing the recruiting window is the single most common way this path dies. A strong candidate who starts looking in their final year is simply late.
- 3
Build accounting and valuation fundamentals
The three statements, DCF, comparables, and enough Excel to build them fast.
Interviews test whether you can walk through a DCF and link the three statements cold. This is learnable months ahead, and it is the difference between confident and rehearsed.
- 4
Stack early experience
Finance club leadership, a boutique or regional internship, anything client- or deal-adjacent.
Large banks screen for evidence of interest before they screen for skill. A sophomore-year boutique internship is worth more than a higher GPA.
- 5
Network into first-round interviews
Coffee chats with analysts and associates at target banks — referrals decide who gets interviewed.
IB hiring runs on warm introductions. Cold applications work at boutiques; at large banks the interview list is substantially built from referrals.
- 6
Win and convert the summer internship
The internship is the extended interview; most full-time seats go to returning interns.
Treat the summer as a ten-week interview. Conversion is the goal — full-time recruiting for non-interns is a much narrower door.
- 7
Sit your qualification exams once the bank hires you · optional
Banks sponsor the SIE and the exams your desk requires once you start.
FINRA states the SIE is open to anyone 18 or older without firm association, so you can pass it early to show intent — but the registered exams need your employer, so licensing is a post-offer step in this career, not a prerequisite.
- 8
Start, survive, and choose your exit
Two years in, the paths open: private equity, hedge funds, corporate development, or staying on.
The analyst years are an investment. Deciding early what they are buying you — PE, a hedge fund, corporate development — changes which deals and groups you should fight to work on.
Worth knowing
Things that change your odds
Licensing tip
OfficialYou can pass the SIE before anyone sponsors you
FINRA states the SIE is open to anyone 18 or older with no firm association required, and results are valid for four years. The registered exams that follow it require your employer.
Passing it early is a cheap, visible signal of intent on a resume full of coursework.
Career stat
OfficialWhat the occupation-wide data says
BLS puts the 2024 median for financial analysts (the occupation that includes IB analysts) at $101,910, with 6% projected growth to 2034. BLS does not break out IB pay specifically; entry packages at large banks are widely reported to sit well above the occupation median.
Turn this into your path
Free account. We track the steps, tell you what's next, and mark off the exam work as you do it.
Transparency
Sources & methodology
Everything quantitative on this page traces to one of these. Where we are giving advice rather than reporting a finding, the card says so.
- U.S. Bureau of Labor Statistics — Occupational Outlook Handbook: Financial AnalystsWage data are 2024 medians for SOC 13-2051, which covers financial analysts broadly — including securities analysts and analysts in investment banking, private equity and corporate finance. BLS does not publish separate figures for IB or PE roles specifically, whose entry-level pay at large firms is widely reported to sit far above this occupation-wide median.
- FINRA — Securities Industry Essentials (SIE) ExamFINRA's own description of SIE eligibility, format and fee.
Disclosures
Finance Exam Pro is an independent study platform and is not affiliated with, endorsed by, or sponsored by FINRA, NASAA, or any examination sponsor. Licensing and registration requirements vary by role, employer and state, and change over time — confirm current requirements with the relevant regulator before you register. Career progress indicators on this site measure how far through a path you are; they are not predictions of employment. Nothing here is investment, legal, or tax advice.