Mergers and acquisitions are becoming increasingly common and bigger in the healthcare sector, with 2021 far outpacing 2020 in terms of total deals. Some of the notable healthcare deals in 2021 so far include Pfizer’s offer to acquire Hospira for $17 billion and Thermo Fisher Scientific’s acquisition of Pharmaceutical Product Development (PPD), a leading clinical research services company, for $17.4 billion. The surge in healthcare deals has made healthcare investment banking one of the hottest job trends today. Keeping this in mind, are tips on how to get into healthcare investment banking.
Unlike groups such as life science and biotech equity research, you do not necessary need an advanced degree in biology, chemistry, or medicine to join this group. However, medical knowledge and a good understanding of healthcare business models are invaluable in this niche. Moreover, a thorough understanding of up-and-coming technology and the medical industry would likely give you an edge during the recruitment process.
The Recruitment Process
The application process is largely similar to the process of applying for any position at an investment bank such as Chardan. The only difference being you’ll need to indicate your preference in the application form by checking the relevant boxes. It’s worth noting that applicants who receive job offers after Superday are generally placed in any product or industry groups based on their skill sets and experience. If you’re not placed in the healthcare industry group, you should let the HR department know that you’re particularly interested in this niche. Recruiters and group leaders are generally quite flexible, and therefore, they’ll likely consider your preference.
Similar to other related groups, your career as a healthcare investment banker will follow a fairly standard trajectory. In general, you’ll start off as an analyst, then progress to an associate, vice president, director/senior vice president and then finally, managing director.
Pros and Cons of Working as a Healthcare Investment Banker
• Various skill sets — By working across various types of financial transactions including debt, equity, and mergers and acquisitions, you have plenty of opportunities to improve and acquire new skill sets that you can transfer to other industries.
• Greater exit opportunities – Besides the different groups at your investment bank, you have many other exit opportunities. Possible exit opportunities include, among others, venture capitals, hedge funds, corporate developments, and private equity firms.
• Growth potential — The demand for healthcare services is typically inelastic. Therefore, irrespective of the economic conditions, the sector will likely continue to grow at a fast rate. To keep up with the demand, healthcare companies will need money to finance their operations and growth strategies.
• Industry-specialized – Healthcare investment banking focuses exclusively on healthcare deals. Because of this, it tends to be more boring and lower paced compared to other groups in investment banking.
• Exit opportunities — Depending on your background, some exit opportunities may be unavailable. For instance, without a medical background, you’d likely miss out on opportunities that require a strong medical background.
If you’re passionate about healthcare, finance, and technology, you should consider a career in healthcare investment banking. As a healthcare investment banker, you’ll get to advise healthcare companies on a wide range of financial issues.