Corporate finance is an area of finance dealing with all the financial activities of a firm ranging from capital investment decisions to investment banking. A corporate finance professional is one responsible for managing short and long-term financial goals of the company by planning and implementing various investment strategies. Their aim is to maximize shareholder value, by raising capital in a cost effective way and successfully deploying this capital for productive purposes. A job in corporate finance pays well but you need to have strong analytical, negotiation and problem solving skills.
Corporate finance professional broadly plays two major roles; firstly they ensure that the firm has required funds and that these funds are raised at minimal costs. Secondly, the funds raised are utilized in a way to offer maximum return to its owners. Specializing in Corporate Finance facilitates your chances of rising up the corporate ladder. Since the acquired skills and knowledge makes you a suitable candidate for highly specialized jobs in Fortune 500 companies, it is a gateway to fulfilling your wall street dream.
Major Subject Area
Corporate Finance usually falls within the coursework of MBA Finance Major and Masters in Finance but specific Post Graduate, Certificate courses and Executive programs are also available for career growth of working professionals. Numerous universities offer Corporate Finance as a Concentration or Certificate course in Finance degree and MBA programs. An MBA in Corporate Finance equips students for careers in investment banking, mergers and acquisitions, accounting, real estate finance, marketing management and information management, among others. Candidates enrolling in MBA – Corporate Finance Specialization program are from a wide range of academic and professional background, from accounting to chemical engineering, law, and real estate.
Some of the areas included in corporate finance courses are Capital Structures, investments & Valuation, Dividend Policy, and Working Capital. A typical program in Corporate Finance course covers the major financial decisions and instruments used by corporate managers. It focuses on financial management from the internal perspective of the corporation. The process of valuation, forms an important part of this course. It builds upon the concepts from the core finance courses to equip learners’ with instruments for evaluation and assessing their financial, investment and strategic decisions. Topics covered include –
Mergers and Acquisitions
Teaching methods in such Programs includes classroom lectures to develop the theory, and practical experiences, such as real-world cases, study tours to visit industry experts, internships, to provide its applications.
Some of the positions secured after completing an MBA in Corporate Finance are –
Investment Banking Associate
Senior Financial Consultant
Investor Relations Officer
Employers ; Average Salary Range
Bain ; Co. Inc.
Barclays Capital Group
Goldman, Sachs ; Co.
The Carlyle Group
M;T Bank Corporation
Bureau of Labor Statistics(BLS), U.S. Department of Labor, reports the median annual salary for financial managers was $125,080 in May 2017. Investment banking analysts could expect around $130,000 annually inclusive of performance-based bonuses, according to data from Wall Street Oasis.
University of Pennsylvania (Wharton)
University of Chicago (Booth)
New York University (Stern)
Massachusetts Institute of Technology (Sloan)
Potential Career Opportunities
Demand for investment banking and retirement services are anticipated to create employment growth. As per BLS, employment of financial managers is estimated to grow 19% from 2016 to 2026, much speedier than the average for all professions. Several core functions of financial managers, including risk management and cash management, are expected to be in high demand over the next decade.
Reference Reading – BLS – https://www.bls.gov