1 Corporate Finance Mark Pacyna / Manoj Ramnani VP’s for Corporate Finance Ross Business School Finance Club

2 What is Corporate Finance? Job Descriptions Job Descriptions Sample Organizational Structure Sample Organizational Structure Sample of Ross On-Campus Recruiting Companies Sample of Ross On-Campus Recruiting Companies Lifestyle and Compensation Lifestyle and Compensation Skills Recruiters are Seeking Skills Recruiters are Seeking Interview Interview Internship Recruiting Roadmap Internship Recruiting Roadmap Upcoming Events Upcoming Events

3 Corporate Finance Spectrum AccountingAccounting ReportingReporting Internal AuditInternal Audit AnalysisAnalysis PlanningPlanning ForecastingForecasting TreasuryTreasury BudgetingBudgeting Variance AnalysisVariance Analysis Product/Service AnalysisProduct/Service Analysis Business DevelopmentBusiness Development Special ProjectsSpecial Projects M&AM&A Strategic PlanningStrategic Planning StrategyStrategy Most corporate finance positions fall into this range…

4 MBA Graduate Job Descriptions Designated Positions or Part of Rotational Program Program/Product Financial Analyst/Strategic Planning Program/Product Financial Analyst/Strategic Planning Evaluating product, divisional or operating unit performance (budgeting, forecasting and variance analysis) Evaluating product, divisional or operating unit performance (budgeting, forecasting and variance analysis) Providing financial support for corporate and business unit initiatives Providing financial support for corporate and business unit initiatives Conducting lease vs. buy analysis Conducting lease vs. buy analysis Forecasting cash flows and capital structure Forecasting cash flows and capital structure Supporting the investor relations department in dealings with analysts and investors Supporting the investor relations department in dealings with analysts and investors Reviewing debt, equity and hybrid financing alternatives Reviewing debt, equity and hybrid financing alternatives Performing DCF analysis of acquisition candidates and outsourcing opportunities Performing DCF analysis of acquisition candidates and outsourcing opportunities Articulating financial performance and strategies through presentations to/for senior finance management Articulating financial performance and strategies through presentations to/for senior finance management Capital Planning / Budgeting Capital Planning / Budgeting Competitive Intelligence Competitive Intelligence

5 MBA Graduate Job Descriptions Designated Positions or Part of Rotational Program Financial Reporting Financial Reporting Monthly financial reports, budgeting and analysis Monthly financial reports, budgeting and analysis Strategic Pricing Strategic Pricing Supporting the marketing organization with pricing analysis for new programs/products Supporting the marketing organization with pricing analysis for new programs/products Corporate Development Corporate Development Merger, acquisition and minority investment analysis Merger, acquisition and minority investment analysis Treasury Treasury Global Cash Management Global Cash Management Debt and Equity Financing Debt and Equity Financing Pension funding, analysis and overseeing investment management Pension funding, analysis and overseeing investment management Risk management, foreign exchange & commodity hedging Risk management, foreign exchange & commodity hedging Overseas Finance (international funding, dividend repatriation) Overseas Finance (international funding, dividend repatriation) Business Development (mergers, acquisitions, divestitures) Business Development (mergers, acquisitions, divestitures) Capital Planning Capital Planning Taxation Taxation Internal Audit Internal Audit Review of operational and financial controls, identify opportunities to improve Review of operational and financial controls, identify opportunities to improve

6 Combining Finance with Other Fields Business Development Business Development Expanding an existing product portfolio and/or markets served Expanding an existing product portfolio and/or markets served Consulting Consulting Generalists often perform financial analyst duties on projects Generalists often perform financial analyst duties on projects Dedicated Corporate Finance Groups Dedicated Corporate Finance Groups Internal consulting groups Internal consulting groups Marketing Marketing Non-brand marketing involves market/opportunity analysis, pricing strategies, and corporate resource allocation Non-brand marketing involves market/opportunity analysis, pricing strategies, and corporate resource allocation So how do you find the right career for you? So how do you find the right career for you?

7 Sample Organizational Structure Chief Financial Officer (CFO) Controller Director, Programs/Products Chief Accounting Officer (CAO) Manager, Corp. Development Manager, Strategic Planning Manager, Strategic Pricing Manager, Prog/Prod Fin Analysis Director, Planning Manager, Accounting Manager, Internal Audit Treasurer

8 Sample of Ross On-Campus Recruiting Companies Amazon.com Amazon.com American Express American Express Amgen Amgen Bear Stearns Bear Stearns ChevronTexaco ChevronTexaco Cummins Cummins DTE Energy DTE Energy DaimlerChrysler DaimlerChrysler Ecolab Ecolab Eli Lilly Eli Lilly ExxonMobil ExxonMobil General Motors General Motors Honeywell Intel HP JP Morgan Kraft Merck Microsoft SC Johnson Target 3M Union Pacific Whirlpool

9 Lifestyle and Compensation Lifestyle Lifestyle Typical hour work week (with peak periods) Typical hour work week (with peak periods) Minimal weekends Minimal weekends Flexible work schedules Flexible work schedules Relatively low travel (except internal audit) Relatively low travel (except internal audit) Compensation is relatively good Compensation is relatively good $100,000* average for Class of 2002 $100,000* average for Class of % of the 2003 Class took jobs in Corporate Finance, up from 16% in 2002 and 6% in % of the 2003 Class took jobs in Corporate Finance, up from 16% in 2002 and 6% in * Total compensation includes base salary, signing bonus, tuition reimbursement, & guaranteed performance bonus * Total compensation includes base salary, signing bonus, tuition reimbursement, & guaranteed performance bonus Internship opportunities Internship opportunities 65+ internships in internships in 2003

10 Skills Recruiters Are Seeking Analytical/Quantitative Analytical/Quantitative Leadership Leadership Teamwork Teamwork Initiative Initiative Ability to Communicate Ability to Communicate Confidence Confidence Maturity Maturity

11 Corporate Finance Interview Personal Fit/Behavioral Personal Fit/Behavioral Corporate Finance Interest Corporate Finance Interest Industry Interest Industry Interest Company Interest Company Interest Financial Problem Solving Financial Problem Solving Cases Cases

12 Job Hunting Resources iMpact iMpact Company and job descriptions, resume drop and interviewing schedule, company contacts, alumni database Company and job descriptions, resume drop and interviewing schedule, company contacts, alumni database Kresge Library Kresge Library Company files, Vault, Wetfeet, Hoover, Business and Company Resource Center, etc. Company files, Vault, Wetfeet, Hoover, Business and Company Resource Center, etc. Company Presentations Company Presentations Use Q&A to understand company strategy, industry, and job opportunities Use Q&A to understand company strategy, industry, and job opportunities OCD Career Counseling OCD Career Counseling Career information, guidance, resume reviews, mock interviews Career information, guidance, resume reviews, mock interviews Informational Interviews Informational Interviews Day in the Life Day in the Life Carefully select Alumni that work in companies or industries that interest you Carefully select Alumni that work in companies or industries that interest you Use MBA2’s as a resource Use MBA2’s as a resource

13 Corporate Finance Intern Recruiting Roadmap Company Presentations and Events Company Presentations and Events Beginning September 20 Beginning September 20 OCD Resume Reviews OCD Resume Reviews September & October – Do it NOW! September & October – Do it NOW! Meet the Interns Meet the Interns October & November October & November OCD Mock Interviews OCD Mock Interviews September through early December – Start EARLY! September through early December – Start EARLY! Corporate Finance Forum Corporate Finance Forum November 5 November 5 Speakers and Presentations Speakers and Presentations TBD throughout the Fall Semester TBD throughout the Fall Semester Finance Club Mock Interviews Finance Club Mock Interviews Early January Early January Interviews Interviews Beginning mid-January Beginning mid-January

14 This week in Corporate Finance (see OCD Recruiting Events in iMpact for more details) Monday, 9/27 Monday, 9/27 General Mills* General Mills* General Electric General Electric Tuesday, 9/28 Tuesday, 9/28 Eaton Eaton Goodyear* Goodyear* Wednesday, 9/29 Wednesday, 9/29 Ecolab Ecolab Federal Bank of new York Federal Bank of new York Thursday, 9/30 Thursday, 9/30 P&G P&G Amazon Amazon Accenture Accenture Discover Financial Services Discover Financial Services Friday, 10/01 Friday, 10/01 International Finance Corporation International Finance Corporation Monday, 10/04 Monday, 10/04 American Express American Express * May or may not be recruiting for corp. finance positions This list may not be complete. Check OCD Recruiting Events for a complete list of all recruiting events, dates and times.

15 Upcoming Attractions Next Sunday at 5pm in TBD– Next Sunday at 5pm in TBD– Resume Reviews Resume Reviews Upcoming Weeks… Upcoming Weeks… Intel will be hosting a seminar on Real Options for MBA2’s interested in Corporate Finance Intel will be hosting a seminar on Real Options for MBA2’s interested in Corporate Finance West Coast Forum participation West Coast Forum participation Meet the Interns in Corporate Finance Meet the Interns in Corporate Finance