Guide
Investment banking groups: what each coverage and product group does
Updated November 1, 2026
Investment banks split their bankers into two kinds of teams. Coverage (industry) groups, such as TMT, healthcare or FIG, know one sector and work on every deal type for it. Product groups, such as M&A, ECM, DCM and leveraged finance, run one type of deal across all sectors. Restructuring is usually a product group.
What is the difference between coverage groups and product groups?
Coverage groups own client relationships in one industry; product groups own the execution of one deal type. Mergers & Inquisitions describes product groups as working on a single deal type across industries, and industry groups as working on many deal types inside one industry (Mergers & Inquisitions).
In practice the two work together. J.P. Morgan says its capital markets team partners with coverage and advisory bankers to meet clients' financing needs (J.P. Morgan). Goldman Sachs presents M&A and capital solutions next to its industry coverage teams, of which it lists nine (Goldman Sachs; Goldman Sachs industry coverage).
The work differs too. Industry bankers spend more time on sector knowledge and 3-statement models, while product bankers get deep in merger or LBO models (Mergers & Inquisitions).
| Coverage (industry) groups | Product groups | |
|---|---|---|
| Focus | One sector, every deal type | One deal type, every sector |
| Examples | TMT, industrials, consumer and retail, FIG, healthcare, energy and power, real estate | M&A, ECM, DCM, leveraged finance, restructuring |
| Typical analyst work | Industry research, comps, 3-statement models, pitch books | Merger models, LBO and credit models, offering execution |
What does a TMT investment banking group do?
TMT bankers advise technology, media and telecom companies on M&A and financing. Goldman Sachs's TMT coverage spans software, internet, semiconductors, hardware, communications technology, information services, education technology, media and telecom (Goldman Sachs).
Media is usually part of TMT rather than its own group, and banks that do telecom deals often brand themselves TMT because telecom alone is narrow (Mergers & Inquisitions).
Valuation in interviews: standard methods (DCF, comps, precedent transactions, accretion/dilution, LBO) still apply in tech. For software you should know SaaS metrics such as CAC, lifetime value, churn and annual recurring revenue (Mergers & Inquisitions, technology). In telecom and media, subscribers, penetration and ARPU (average revenue per user) drive revenue, and sum-of-the-parts valuation is common for companies spread across several businesses (Mergers & Inquisitions, TMT).
A question to prepare: “How would you value a software company that isn't profitable yet?”
What does an industrials investment banking group do?
Industrials bankers cover companies that build, move and power physical things. Goldman Sachs lists aerospace and defense, automotive, building and construction, business services, capital goods, diversified industrials, industrial technology, paper and packaging, and transportation and logistics (Goldman Sachs).
Valuation in interviews: nothing specialized. Mergers & Inquisitions says industrials uses common multiples such as EV/EBITDA, P/E and EV/Revenue, the usual DCF works, and lease accounting matters because companies own, lease or mix their assets (Mergers & Inquisitions). Sector metrics include order backlog and capacity utilization in aerospace, and fleet utilization in transportation.
A question to prepare: “Walk me through a DCF for a capital-intensive manufacturer. What changes when CapEx is high?”
What does a consumer and retail investment banking group do?
Consumer and retail bankers cover brands, stores and restaurants. Goldman Sachs's list includes apparel, beauty and personal care, convenience stores, food and beverage, department stores, pet products, restaurants, specialty retailers and supermarkets (Goldman Sachs).
Food and beverage sits inside consumer at Goldman Sachs; some banks and boutiques run it as its own team (Mergers & Inquisitions, food and beverage).
Valuation in interviews: the traditional multiples and the DCF apply. The differences are metrics such as same-store sales and per-store or per-square-foot figures, plus lease accounting (Mergers & Inquisitions, consumer retail). When some companies own their stores and others rent, bankers use EBITDAR and (EV + leases) / EBITDAR to compare them on equal terms (Mergers & Inquisitions, food and beverage).
A question to prepare: “Why would you use EBITDAR instead of EBITDA to compare two restaurant chains?”
What does a FIG investment banking group do?
The financial institutions group (FIG) covers companies whose product is money. Goldman Sachs lists banks, insurance companies, asset managers, financial technology companies and specialty finance firms (Goldman Sachs).
Valuation in interviews: for commercial banks and insurers, enterprise value doesn't work, because debt and securities are a bank's raw materials rather than financing. So FIG relies on equity-value multiples such as P/E, P/BV (price to book value) and P/TBV, on ROE and ROA, and on a dividend discount model instead of a standard DCF. Regulatory capital ratios constrain the model (Mergers & Inquisitions).
Not everything in FIG is different: the same source says you can value asset managers, broker-dealers and fintech companies with a DCF and EV/EBITDA.
A question to prepare: “Why don't you use EV/EBITDA to value a bank? What do you use instead?”
What does a healthcare investment banking group do?
Healthcare bankers cover drug, device and care companies. Goldman Sachs lists biotechnology, diagnostics and life sciences, healthcare IT, healthcare services, medical devices and pharmaceuticals (Goldman Sachs).
Valuation in interviews: mostly standard (DCF, comps, precedents, accretion/dilution, LBO). The main exception is biopharma, where bankers often build a probability-weighted DCF that multiplies each drug's cash flows by its chance of success at its clinical stage (Mergers & Inquisitions).
A question to prepare: “How would you value a biotech company with one drug in Phase II trials?”
What does an energy and power investment banking group do?
Energy bankers cover oil and gas, power, utilities and related industries. Goldman Sachs groups energy, power, infrastructure, chemicals, and metals and mining under natural resources (Goldman Sachs).
Valuation in interviews: upstream (exploration and production) is the specialized part. Mergers & Inquisitions describes the NAV model as a very long DCF with no terminal value, plus multiples such as EV/EBITDAX, EV/daily production and EV/proved reserves; midstream companies still use EBITDA and a DCF (Mergers & Inquisitions).
A question to prepare: “Why would you add back exploration expense and use EBITDAX for an oil and gas company?”
What does a real estate investment banking group do?
Real estate bankers cover REITs, hotels, gaming and property companies. Goldman Sachs's list includes REITs, hotel and gaming companies, shopping centers, office, industrial and multifamily properties, and development projects (Goldman Sachs).
Valuation in interviews: REITs are the special case. Because depreciation and gains on sales distort net income, bankers use funds from operations (FFO) and adjusted FFO, equity-value multiples built on them, and a net asset value model for U.S. REITs. Non-REIT companies use standard EV/EBITDA and a DCF (Mergers & Inquisitions).
A question to prepare: “What is FFO and why is it used instead of net income for a REIT?”
What does a restructuring investment banking group do?
Restructuring bankers advise companies that can't support their debt, or the creditors owed that debt. Evercore says it advises companies, sponsors, creditors and shareholders in and out of court, on exchange offers, covenant waivers, distressed sales and Chapter 11 plans (Evercore). Houlihan Lokey says its restructuring group has advised on more than 1,900 restructuring transactions since 1988 (Houlihan Lokey).
Valuation in interviews: expect enterprise-value methods, a liquidation analysis, and recovery analysis by creditor class. In a liquidation analysis you apply a recovery rate to each asset (cash near 100%, goodwill 0%) and pay creditors in order of seniority (Mergers & Inquisitions). CFI defines liquidation value as assets at a quick-sale value minus liabilities, excluding intangibles such as goodwill (CFI).
Restructuring candidates still get standard accounting, valuation, M&A and LBO questions, plus credit and Chapter 7 vs. Chapter 11 basics (Mergers & Inquisitions).
A question to prepare: “What is the difference between Chapter 7 and Chapter 11, and who gets paid first in a liquidation?”
What does a leveraged finance group do?
Leveraged finance (LevFin) arranges below-investment-grade debt, high-yield bonds and leveraged loans, often to fund leveraged buyouts and acquisitions. Below investment grade means a rating of Ba1/BB+ or lower (Mergers & Inquisitions).
Valuation in interviews: the focus is credit, not equity value. Expect LBO models, credit stats such as leverage and interest coverage, downside cases, and debt terms. Mergers & Inquisitions says LevFin overlaps with the financial sponsors group, since both serve private equity firms.
A question to prepare: “A sponsor wants to buy a company at 10x EBITDA with 6x leverage. How do you test whether the debt works?”
What does an M&A group do?
The M&A group runs acquisitions, sales and mergers across all industries. Evercore describes evaluating acquirers and targets, analyzing value and structuring spin-offs, divestitures and joint ventures (Evercore).
M&A analysts build many merger models and often split work with the coverage team on the same deal (Mergers & Inquisitions). Sell-side deals use marketing documents such as the confidential information memorandum (CIM).
A question to prepare: “Walk me through a merger model. When is a deal accretive?”
What does an ECM group do?
Equity capital markets (ECM) helps companies raise equity: IPOs, follow-on offerings and convertible bonds. Modeling is lighter than in M&A, and interviewers expect you to follow recent IPOs and markets (Mergers & Inquisitions). On an IPO, the industry team usually does most of the valuation and ECM covers the market and the process (Mergers & Inquisitions).
A question to prepare: “Why would a company raise equity instead of debt, and how is an IPO priced?”
What does a DCM group do?
Debt capital markets (DCM) helps companies and governments issue investment-grade bonds. Deals are faster and more frequent than equity deals, with lower fees, and LevFin handles the high-yield side instead (Mergers & Inquisitions).
Know bond basics for DCM interviews: yields, yield to maturity and yield to worst, call features, and why a company chooses debt over equity.
A question to prepare: “If interest rates rise, what happens to the price of an existing bond?”
Which valuation topics does each group test?
Every group asks the core questions; the table shows the group-specific emphasis and which of our question sets to practice.
| Group | Typical clients | Valuation focus | Practice |
|---|---|---|---|
| TMT (incl. media) | Software, internet, semiconductors, media, telecom | Standard methods; SaaS metrics, ARPU, sum of the parts | Valuation |
| Industrials | Aerospace, autos, capital goods, transportation | EV/EBITDA, P/E, DCF; leases | DCF |
| Consumer and retail (incl. food and beverage) | Brands, retailers, restaurants, grocers | Standard multiples; same-store sales, EBITDAR | Enterprise value |
| FIG | Banks, insurers, asset managers, fintech | P/E, P/BV, P/TBV, dividend discount model | Valuation |
| Healthcare | Pharma, biotech, devices, services | Standard methods; probability-weighted DCF | DCF |
| Energy and power | Oil and gas, power, utilities, mining | NAV model, EV/EBITDAX, EV/reserves | Valuation |
| Real estate | REITs, lodging, gaming, developers | FFO, AFFO, NAV | Accounting |
| Restructuring | Distressed companies and their creditors | EV methods, liquidation and recovery analysis | Enterprise value |
| Leveraged finance | Private equity sponsors, sub-investment-grade issuers | LBO, credit stats, debt capacity | LBO |
| M&A | Buyers and sellers in every sector | Merger model, accretion/dilution, synergies | Merger model |
| ECM | Companies issuing stock or convertibles | Comps, IPO valuation, ownership changes | Valuation |
| DCM | Investment-grade companies and governments | Bond yields, credit ratios, cash flow stability | Accounting |
Sources: Goldman Sachs industry coverage; the Mergers & Inquisitions group guides linked above.
How should you answer “Why this group?” in an interview?
Give one real reason you're drawn to the sector or product, one piece of proof, and one link to the work the group does. Keep it short, well under a minute.
- Reason: a specific interest, such as how banks make money or why software trades on revenue, not “I like tech.”
- Proof: a class, internship, club pitch or deal you followed, named concretely.
- Link to the work: name a recent deal in the sector and say what you'd want to learn modeling it.
It builds on your broader “why banking” answer; see how to answer “Why investment banking?”. If you're recruiting from a non-target school, a sector story backed by real work is one of the clearest ways to stand out (non-target guide). Time your answer with the answer length tool.
How should you prepare for a group-specific interview?
Master the core technicals first, then add the sector layer. Most groups ask the same accounting, valuation, DCF and LBO questions; the sector material shows up as one or two follow-ups. Start with the common questions with short answers, then read the group's valuation section above. Bank-specific questions are under questions reported by firm, including Goldman Sachs, J.P. Morgan and Evercore.
Frequently asked questions
- What are the main investment banking groups?
- Coverage groups such as TMT, industrials, consumer and retail, FIG, healthcare, energy and power, and real estate, and product groups such as M&A, ECM, DCM, leveraged finance and restructuring. Names vary by bank.
- Is restructuring a coverage group or a product group?
- It is usually treated as a product group: it works on one type of deal, for distressed companies or their creditors, across all industries.
- Which investment banking group uses different valuation methods?
- FIG for banks and insurers (P/E, P/BV and a dividend discount model instead of EV/EBITDA), upstream energy (NAV model, EV/EBITDAX), REITs (FFO and NAV), and restructuring (liquidation and recovery analysis).
Group names and structures vary by bank and change over time; descriptions here come from the sources named. Superday Room isn't affiliated with any bank or with these publishers.
Sources
- Goldman Sachs, “Industry Coverage”, bank page; read November 1, 2026.
- Goldman Sachs, “Investment Banking”, bank page; read November 1, 2026.
- J.P. Morgan, “Capital Markets”, bank page; read November 1, 2026.
- Evercore, “Strategic Advisory”, bank page; read November 1, 2026.
- Evercore, “Liability Management & Restructuring”, bank page; read November 1, 2026.
- Houlihan Lokey, “Financial Restructuring”, bank page; read November 1, 2026.
- Mergers & Inquisitions, “Industry Groups vs. Product Groups in Investment Banking”, article; read November 1, 2026.
- Mergers & Inquisitions, “TMT Investment Banking: Tech, Media and Telecom Banking Guide”, article; read November 1, 2026.
- Mergers & Inquisitions, “Technology Investment Banking: Deals, Sectors, Valuations, and Exits”, article; read November 1, 2026.
- Mergers & Inquisitions, “Industrials Investment Banking”, article; read November 1, 2026.
- Mergers & Inquisitions, “Consumer Retail Investment Banking: Detailed Guide”, article; read November 1, 2026.
- Mergers & Inquisitions, “Food and Beverage Investment Banking: Recruiting, Valuation, Deals”, article; read November 1, 2026.
- Mergers & Inquisitions, “Financial Institutions Group: FIG Investment Banking Guide”, article; read November 1, 2026.
- Mergers & Inquisitions, “Healthcare Investment Banking: Drivers, Valuations, Deals & Exits”, article; read November 1, 2026.
- Mergers & Inquisitions, “Oil & Gas Investment Banking: Complete Industry Guide”, article; read November 1, 2026.
- Mergers & Inquisitions, “Real Estate Investment Banking: Deals, Valuation, and More”, article; read November 1, 2026.
- Mergers & Inquisitions, “Restructuring Investment Banking: How to Get In and What You Do”, article; read November 1, 2026.
- Mergers & Inquisitions, “Leveraged Finance: Careers, Salaries & Exit Opps”, article; read November 1, 2026.
- Mergers & Inquisitions, “Equity Capital Markets (ECM): The Definitive Guide”, article; read November 1, 2026.
- Mergers & Inquisitions, “Debt Capital Markets (DCM) Explained: Definitive Guide”, article; read November 1, 2026.
- Corporate Finance Institute (CFI), “Liquidation Value”, article; read November 1, 2026.