Bank on Banking

I got a 710 on the GMAT today and am wondering if I should retake it. I am graduating soon and starting my IBD position in about 2 months. Is a 710 good enough to get into a top school assuming everything else is solid (or will a 710 keep me out of those schools or put me at a disadvantage to other applicants)?

A 710 will definitely not keep you out of those schools by any means. That said, if you think you had a bad test day, or think with just a bit more studying you could hit a 750 or better, then why not do it. If, however, you really put your hard work in, cranked away and don’t even want to think GMAT anymore, don’t bother taking it again to maybe get a 720…or maybe get a 690. A 710 is a solid score and with H/S/W and any other top 5-10 school, there is a lot more to an admission acceptance than your GMAT.

In short, check the GMAT box off the B school list and move on to strengthening the rest of your candidacy.

Are 90-100-hour weeks for analysts for real? Why can’t they just hire 2 people to work 40-50 hours per week instead? Also, do hours decrease as you move up the IB chain?

Yes, the hours really do approach 90-100+ at times – depending on deal flow, staffing needs and fire drills (sudden deal items that NEED to be done immediately). That said, 90-100+ hour weeks are not the norm, although just a few weeks like that in a row can feel like the norm and burn you out.

To the 2nd part of your question, no, you can’t just hire 2 people to do the job of 1 unless you hire 2 people to do the job of every 1 person and essentially double up on everyone and make them think exactly alike – essentially clone them…etc. In short, there is a chain of work – senior banker, to secondary senior banker (VP, senior associate, depending on group), to associate to analyst (give or take 1 banker in the chain depending on the deal plus other deal teams as needed). Therefore, the analyst might work 80 hours 1 week because he/she is on 2 live deals and changes to models, pitches and info memos filter down the chain and then back up the chain. Then new changes come down the chain and back up the chain – repeat and repeat.

As you go up the chain in IB, the hours do decrease – on average. That said, senior bankers are caught hanging around at midnight sometimes when they need to be – it’s just not as common. If on an average night an analyst gets out at around 11pmish, the associate is out by about 9-10pm and the senior bankers between 6 and 8pm although many times the senior bankers are in an hour or so before the junior guys file in. Additionally, while senior bankers have less hours in general, they also have far more travel time (at least coverage/industry bankers) and travel time is neither glamorous nor exciting (traveling is only a lot of fun when you aren’t required by work to do it and have more than a 5+-hour meeting to look forward to).

<>I am a sophomore at a nontarget and I just landed a BB PWM internship. Are PWM internships looked upon favorably by investment banks? Am I wasting my time, or is this a good opportunity for a sophomore to have in order to break into IB?

As a sophomore especially, you are definitely NOT wasting your time as you are early in your career and will have a strong brand name on your resume. That said, PWM is definitely not that desirable to IB, but a good brand name coupled with the early experience definitely makes it worth while (assuming you don’t have any stronger options available – See Other SA Opps). I would go for it, make the most of it, and then make a strong push for junior SA positions next year through networking, etc.

I have been pretty set on going to Harvard this fall, but I just got off the Wharton waitlist. I”m pretty set on a career in finance/banking, but then again, it’s Harvard and it would be hard to turn it down. So what do you think? Are those two pretty equal for U Grad?

First, let me say that in terms of U Grad, there is VERY little difference between H and W – they are both TOP notch schools, fully recruited by everyone and will open big doors going forward. That said, H has the legacy and brand slightly in its favor, but that IS IT. In other words, H is H, without questions and that’s a big deal, but in your case and given your career goals, I would DEFINITELY say that you should go with W.

For starters, you are in at W and haven’t heard anything from H – the difference is clearly not worth the potential for having zero top tier options. Second, both are top recruited schools with strong brand recognition. Finally and most importantly, in terms of IB/Finance recruiting, W, yes that’s right, W, is actually a stronger target than H. W is definitely the stronger brand in finance and even if you got into H, it would difficult to justify with 100% certainty that you should pick it over W. Bottom line, if I were you, I would pick W and not even look back. If you are interested in B school down the line, then you can shoot for H – for U Grad, for your career goals, and for certainty over uncertainty, go with W.

My contact sent me an email and signed with just his first name after I initially addressed him by the formal Mr. XXX. Should I have continued to use Mr. Smith or is first name now acceptable? Also, when is it appropriate to write an email using first name only; is age a factor?

In your case you are definitely fine with going with the first name. Since he signed with his first name, you essentially “have permission” to address him by his first name going forward without fear of insulting him.

To the second part of your question, it is usually fine to address someone by his/her first name when they are on an equivalent level to you – whether work wise, school-wise, etc. Beyond that, if the person signs or introduces himself/herself using the first name, referring to him/her by his/her first name is acceptable. Additionally, if you’ve had physical or telephone conversations where first names were used, first names are now acceptable for email as well.

Again, it’s not so much age as much as it is about status and situation – generally senior positions would lend themselves to the more formal intro if you are in a junior position regardless of age, whereas junior position interaction would usually go well with casual addressing (first name) regardless of age.

I am currently a high school senior. Do you suggest attempting any sort of networking during my first year of U grad? If I do attempt networking, how should I approach it (given my age and a limited finance background)?

It’s not the depth of your finance background that is an issue, it is your age. Since you are still very early in your college career (or will be), you don’t want to push too hard in terms of networking simply because there isn’t anything that you really need just yet in terms of help with opportunities etc – this is more of an informational push and a means of slowly building a network. That said, there is still absolutely nothing wrong with networking if done tactfully. At this stage your best approach should be in joining IB-related school clubs, attending IB-related school events, etc and working towards meeting professionals in a social manner and asking some broad questions about preparing yourself at this stage.

From there, it will be fine to send emails every few months to keep in touch. I wouldn’t mass email alumni at this point since you don’t have anything to gain – that can be saved for the latter half of your sophomore year (or summer) as you begin to prepare for junior SA recruiting.

Stay tuned for upcoming articles on a typical day in banking, more resume tips and much more!