What is TMT investment banking?
TMT stands for Technology, Media, and Telecommunications, so the TMT investment banking group covers clients in those industries. Investment banking servicesInvestment BankingInvestment banking is the division of a bank or financial institution that serves governments, corporations and institutions by providing underwriting (capital raising) and mergers and acquisitions (M&A) advisory services. Investment banks act as intermediaries between investors and corporations who require capital provided to these clients include equity and debt capital raising, mergers, acquisitions, divestitures, risk management, and other advisory mandates.
The TMT sector is rapidly growing and is becoming a common target for PE firms and venture capitalists, as well as investment bankers. When thinking of a modern startup, it’s not hard to imagine a software or game developer.
What Companies are Included in the TMT Investment Banking Group?
The Technology, Media, and Telecommunications (TMT) group can be further broken down into more specific industries, which include the following:
- Technology
- Electronics / hardware
- Software
- Video games
- Internet
- Media
- Cable companies
- TV and movie studios
- Magazines
- Newspapers (online and offline), newsletters, and other periodicals
- Telecom
- Wireless service providers
- Cable providers
- Internet signal providers
- Radio stations
Popularity of the TMT Investment Banking Group
With the recent rise of massively popular TMT companies such as Google (Alphabet), Facebook, Apple, Alibaba, and Amazon (notice how many of them start with an “A”?), it’s no wonder that the TMT group is the most widely sought after by new IB analysts and associatesHow to get a job in investment bankingThis guide will outline how to get a job in investment banking using out top three tactics: networking and resume, interview prep, and technical skills.
How to get a job in TMT IBD?
We’ve got a wide range of resources to get you ready for a career as an analyst or associate on the TMT Investment Banking team.
Financial modeling guide – check out our free guide to financial modeling best practicesFree Financial Modeling GuideThis financial modeling guide covers Excel tips and best practices on assumptions, drivers, forecasting, linking the three statements, DCF analysis, Excel modeling and much more. Designed to be the best free modeling guide for analysts by using examples and step by step instructions. Investment banking, FP&A, research!
E-commerce Course – take our E-commerce financial modeling and valuation course to really stand out in the hiring process
Additional resources
Thank you for reading CFI’s guide to TMT investment banking…aka the TMT group. To continue advancing your career in corporate finance, these additional resources will help you along the way:
- Why work in investment bankingWhy Investment Banking?Almost every investment banking interviewer will ask the question: why investment banking? I want to work in investment banking because it's the fastest way to learn financial modeling, valuation, Excel, and understand the nature of large corporate transactions. I'm aware the job has a strict hierarchy, very long hours
- Walk me through a DCFWalk me through a DCFThe question, walk me Through a DCF analysis is common in investment banking interviews. Learn how to ace the question with CFI's detailed answer and guide. Build a 5-year forecast of unlevered free cash flow, calculate a terminal value, and discount all those cash flows to present value using WACC.
- Investment banker salariesInvestment Banker SalaryAn investment banker salary is among the highest in the world. They are paid a base salary and a bonus for their compensation. Find out how much they make. An analyst straight out of university can expect to earn over USD $100,000, but per hour it could be as low as $20-35 when working 100 hr/wk
- Investment banking interview questionsInterviewsTMT stands for Technology, Media, and Telecommunications, so the TMT investment banking group covers clients in those industries. Investment banking services provided to these clients include equity and debt capital raising, mergers, acquisitions, divestitures, risk management, and other advisory mandates. (and answers!)
