Vikram Suresh
|
What he does:
Vikram Suresh is a financial analyst in the Global Industrials Investment Banking Group at J.P. Morgan Securities, Inc. in New York. His work involves the analysis of potential mergers and acquisitions, leveraged buyouts, and capital raising opportunities within the industry, with a concerted focus on the specialty and commodity chemicals sectors. He joined the group in June 2005 and has had prior experience in the financial services industry within the leveraged finance as well as the fixed-income and commodity trading areas.
Work within the group is done on a project basis, with an analyst usually taking on two to four projects at a time. “The role of an investment banking analyst, particularly within a sector as opportunistic as chemicals, involves rigorous analysis of how various financial initiatives impact particular companies on several levels, from value creation toward shareholders to competitive positioning amongst peers,” says Vikram. “Having a quantitative background constantly proves beneficial; oftentimes one will encounter a complex, stratified financial model, and the stronger one's grasp of how the numbers within that model flow, the more effective of an analyst that individual proves to be. Understanding the inner workings of a financial model while concurrently realizing the top-level impact that various company initiatives will have are the hallmarks of effective financial modeling.”
The specific types of work an analyst is assigned to and the level of responsibility which that analyst is given is often a function of that individual's strength in financial modeling. Vikram recounts a specific project that analyzed the sale of a public company to a “financial sponsor” or private equity investor. “Such projects are particularly complex, as there are very stringent requirements for such a deal to consummate. In such cases, the parties involved often work with one another to meticulously analyze potential transaction synergies and value delivered to the company's shareholders as well as the sponsor. An analysis that involves a ten-year financial projection is fairly common, with particular year-over-year value creation goals that allow for an extremely narrow margin of deviation.”
Math on the job:
At the core of financial analysis lies a deeply-rooted, albeit abstract set of quantitative tools. While the inner workings of these tools are often glazed over in practice, knowledge of the effects of tweaking various model parameters with these tools leads to optimal financial results that otherwise may not be achieved. Examples include the use of linear algebra to estimate the risk inherent in equity volatility and regression techniques to forecast financial performance over a prolonged time period. “Optimization proves to be the essence of value creation,” comments Vikram. “When company ownership and cash flows are at stake, particularly on buy-side transactions with private equity investors, ensuring that every element of cash flow generation is realized is the only acceptable analysis.”
Vikram's background:
Vikram obtained his Bachelor of Arts in Applied Mathematics and a Minor in Business Administration from the University of California at Berkeley. He is a strong believer in what his high school teacher once told him: “mathematics is the cornerstone to the universe,” and attempts to incorporate a quantitative approach in several aspects of his work. He hopes to one day pursue advanced study in mathematics and apply this to the area of alternative investments.
Advice for students:
Aside from a strong analytical and quantitative ability, Suresh asserts that the key to success in investment banking is to be able to develop strong relationships with one's peers and to have an ability to analyze situations on both a macro as well as a micro scale.