The sole purpose of company’s existence is to make money and some of them make lot of money. These money need to be managed else company does not stay in business for long. That’s where the corporate finance team comes in with the goal of maximizing the value of the corporation while minimizing risk. Corporate finance is the area that focuses on the financial decisions that corporations make and the various tools and analysis that are used to make these significant decisions. Corporate finance professionals are key to a firm’s decision-making process regarding –
- How the corporation should raise and manage its capital;
- What investments the firm should make;
- What portion of profits should be returned to shareholders; and
- Whether it makes sense to merge with or acquire another firm.
The term Corporate Finance is also related to investment banking. Investment banks help companies raise money by issuing and selling securities in the capital markets (equity and debt), as well as providing advice on financial transactions like mergers and acquisitions. Many investment banks also offer financial advisory services.
Investment Banking or Corporate Finance jobs require strong analytical and quantitative skills. If you have a knack for using numbers to understand patterns that influence business, you’ll be of great value to your employer. If you can’t crunch and analyze numbers, this isn’t going to be the right job for you.
You should also enjoy and excel at solving problems and be able to think critically about the numbers you’re working with. Think of it as cracking a code: You need to take all of these numbers-income, expenses, profits, investments, cash flow-and decipher them in order to make the best decisions for the company.
To succeed in these careers, you need a strong attention to detail. To make wise business decisions, your employer will be depending on you to get the numbers right-every time. In order to do that, you’ll also need to have an understanding of an interest in business. That includes reading industry and business publications to understand market conditions, economic forecasts, and trends.
Finance professionals need to look at external factors that could potentially help or hurt profitability. This may be the career for you if you can effectively evaluate business scenarios and recommend a course of action based on quantitative research. If you’re in college and want to work in corporate finance, your best bet is to demonstrate your interest in finance with relevant undergraduate courses in accounting, finance, and economics. Get involved in business, accounting, or investing clubs on campus.
Internships are always a great way to strengthen your resume and differentiate yourself from other candidates. A PGDM with electives in Banking and Corporate Finance will make you attractive to companies hiring for budgeting, planning, and financial strategy functions.
If you want to pursue a lifelong career as a number-cruncher, you’ll probably have to knuckle down and get an advanced degree or certification like CPA or CFA, which ACNSB teaching methodology will provide you an opportunity to do so. You’ll also need to keep track of the regulatory changes that affect how information is reported.