BB IBD or EB M&A? (SA)

Hey guys,

My friend just went through recruiting for Summer Analysts and came out with an offer from a Tier-2 BB (i.e., not GS, MS or JPM) in IBD, and from a Tier-1 M&A Boutique. He's not too concerned about compensation or exit opps, but is very concerned with what he will actually be learning on the job. Any thoughts on pros and cons of each?

Sorry to be so general but I don't want to be too specific on the internet.

 

My 2 cents. BB gives you better resources and exposure to a variety of deals, teams, and network. I would recommend start in BB and "your friend" can always lateral to EB is he see it as fit. BB are also better known outside of IB. If he changes his mind after 1-2 years, BB make the switch easier. BB in general gives you the same learning experience.

 

I can see why you would go with BB IBD over HL Corp Fin (HL RX is a different story), but can't see why you'd turn down Centerview.

I mean you get amazing pay, huge deals and great culture. Exits are probably not as good as the other EBs because of the senior level attitude, but all the analysts I've spoken to seemed to like it enough to want to stay. Purely guessing, but I don't think headhunters would have any qualms putting a Centerview kid in front of any firm if you decided to go for PE. I would go with Centerview in a heartbeat over any BB or Moelis/Evercore/Lazard... And I signed FT with one of those 3 lol

 
Best Response

qwertyzxc @White Party Hat"

OP said "M&A boutique." That indicated that it wasn't HL RX, which as others have accurately pointed out is one of the single best analyst opportunities in restructuring.

OP also pointed out that he wasn't concerned about compensation (which is one of the biggest advantages of Centerview, what with the $85 base, $50 signing, and 1.0x+ bonuses). He also said he was concerned about what you learn on the job. This isn't a knock on Centerview, but from my experience interviewing (and getting an offer) years ago .. speaking with the only friend of mine who signed there .. and talking to people as my career progressed, every indicator is that they groom you to be a career banker. This has a fantastic upside: from the start you're exposed to many of the more qualitative aspects of the business since they want you to be client-facing very early in your career. (This is reinforced by the fact that they aren't just an M&A shop, they're an advisory firm and work on retainer for a handful of big accounts.) The only slight downside is that it means you aren't necessarily the technical monster that the best kids in the roughest groups at BBs are. For a lot of people that downside isn't even a downside. It's simply a different flavor relative to the experience you'd get at a BB.

The other thing to consider is that yes, Centerview analysts don't place "as well" as the other EBs. That's not to impugn the quality of the analysts or the firm. It's a function of a) the three-year analyst program, b) the heavy efforts on the firm's part to retain talent, c) how both the prior have led to fewer placements in years past and thus a smaller alumni network to tap into during buy-side recruiting season, d) the less splashy name of the firm relative to some of its peers.

In short, the vanilla banking experience is best found at BBs. They're the 'default' for a reason. Some of the very best EBs offer a better product at the analyst level for any combination of the following: easier lifestyle / better comp / better placement historically / more mentoring or exposure to seniors / more responsibility and autonomy in your work / stronger alumni network / etc. The handful of EBs that do better than the BBs is very small.

I am permanently behind on PMs, it's not personal.
 

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