Financial modeling became an essential skill to master and move up your career ladder. Companies and organizations look for professionals that can forecast and analyze data. Besides, the candidates should be able to present insights into a professional way. Therefore, to give you a glimpse about the current job market keySkillset created a list of the top 7 jobs that require financial modeling skills in 2020.
Financial planning and analysis
This group of specialists is responsible for monitoring the cash flow, assessing, and forecasting the company’s performance. Besides, the analysts and managers of this department perform comprehensive financial modeling and analysis. The goal is to ensure the future viability of the business.
Investment bankers are the ones Excel was created for. Their responsibility is to value companies for mergers and acquisitions. Also, they do advisory mandates and capital raising. Thus, all are around building Excel models for private equity companies, international governments, large public companies, and more.
This financial area is on the other side of investment banking. In other words, private equity professionals acquire businesses and keep them for a while. They need complex capital structure modeling and for that they create spreadsheets. The purpose is to increase the IRR (internal rate of return) for the transaction. That can be done by using debt (leverage).
Equity research analysts spend a lot of time doing industry research. But they also do company analysis and building financial models in Excel. All the insights, observations, and facts are gathered in the form of a report. Then, they send it to the main decision-makers who assess the potential public security investment.
Companies involved in venture capital sometimes use financial modeling to evaluate the business. Besides, they primarily focus on doing early-stage investments in high growth companies. The approach is to look at the market size, revenue model, and other economic units. Venture capitalists also look at the rate at which the company loses cash in the short term.
Corporate development professionals exist in large public companies. They are responsible for capital raising, mergers, and acquisitions. Besides, they work very closely with investment bankers to execute transactions. To do that, these professionals need amazing financial modeling skills.
To become the best candidate for any financial modeling position, you should continuously sharpen your skills. Since the job is very competitive, personal development is the key. keySkillset can help you outstand your peers and become the best player. For now, hopefully, this list of top 7 jobs that require Financial modeling skills is a piece of good advice.