6 Free Financial Modeling Lessons...and More.

Points)

on 11/2/06 at 12:47pm

don't let the naysayers tell you otherwise--while maybe not as "prestigious" as traditional investment banks, big 4 corporate finance practices do the same work as investment banks. the only difference is that they focus more on middle-market clients.

if you actually take time to look at the league tables past the top 10, you'll actually see that some of these big 4 corporate finance practices do pretty well in terms of deal flow.

i think it actually speaks quite well to the quality of these practices that rudy guiliani (of guiliani capital advisors) actually bought out e&y's corporate finance practice in order to give his firm some legitimacy.

GIULIANI PARTNERS FORMS GIULIANI CAPITAL ADVISORS AND MAKES STRATEGIC ACQUISITION
Firm provides investment banking solutions and independent advice to business leaders

December 1, 2004 - New York, NY. Rudolph W. Giuliani and Giuliani Partners LLC today announced the formation of Giuliani Capital Advisors LLC, a firm that will provide investment banking solutions and independent advice to leaders dealing with complex business challenges, strategic transactions or financial distress.

"Giuliani Capital Advisors enables us to provide key financial advisory solutions to the business community complementing our other services," said Mr. Giuliani, who is Chairman and CEO of Giuliani Partners LLC, a management consulting firm, and parent company of Giuliani Capital Advisors. "At Giuliani Partners, we advise companies dealing with high-level strategic challenges. Often the solution involves a combination of changes including one or more transactions. These transactions may involve the sale of all or a part of the business, an acquisition to accelerate growth, or the restructuring of debt or equity."

"We are putting together a great team of seasoned executives from the financial community to work closely with business leaders on critical transaction issues," Mr. Giuliani added.

Coinciding with the launch of Giuliani Capital Advisors, the firm announced the acquisition of Ernst & Young Corporate Finance LLC ("EYCF"). EYCF has executives and staff in six offices throughout the United States (New York, Chicago, Atlanta, Los Angeles, San Francisco and Troy, MI). "The EYCF executives will maintain their existing client relationships, continuing to grow the business in their current locations and forming the backbone of Giuliani Capital Advisors," said Mr. Giuliani. Terms of the deal were not disclosed.

Steven D. Oesterle, Managing Director at Giuliani Partners since January 1, 2003, serves as Chairman and Chief Executive Officer of Giuliani Capital Advisors. Mr. Oesterle is a former Vice Chairman of Ernst & Young LLP, where his responsibilities included management of the firm's corporate finance practice.

"I welcome my former colleagues from EYCF to Giuliani Capital Advisors," said Mr. Oesterle. "We look forward to providing our clients with the expertise of this talented and experienced group."

James S. Turley, Chairman and Chief Executive Officer of Ernst & Young LLP, said, "The sale of Ernst & Young Corporate Finance LLC is part of our on-going commitment to refocus on our core businesses - auditing, tax and transaction advisory services. The acquisition also enables members of the Corporate Finance LLC to join together with Giuliani Partners in the continued growth of their business."

About Giuliani Capital Advisors LLC:
Giuliani Capital Advisors provides investment banking solutions and independent advice to leaders dealing with complex business challenges, strategic transactions or financial distress. The company is guided by the Giuliani Leadership Principles: Integrity, Objectivity, Loyalty, Creativity, and Accountability. The firm has offices in New York, Chicago, Atlanta, Los Angeles, San Francisco and Troy, MI.

Further information about Giuliani Capital Advisors is located on the following site:
www.giulianicapitaladvisors.com

About Giuliani Partners LLC:
Giuliani Partners LLC is a management consulting firm dedicated to helping leaders solve critical strategic issues, accelerate growth, and enhance the reputation and brand of their organizations in the context of strongly held values.

Further information about Giuliani Partners LLC is located on the following site:
www.giulianipartners.com

and btw aadpepsi:

Points)

on 11/2/06 at 12:51pm

there is no e&y corporate finance practice any longer

I stand corrected.

(King Kong, 1,236

Points)

on 11/2/06 at 12:58pm

Thank you.

i'd guess comp is about 1/2

ke18sb

(King Kong, 1,092

Points)

on 11/2/06 at 1:20pm

i'd guess comp is about 1/2 to 1/3 of what one gets at an ibank, pretty sure you don't get bonuses, assuming a top 1st year ibd gets 140 all in where as big 4 probably get 50 all in

also from the people that i know that work in corporate finance at a big four its totally different than ibd, they are just the ones that audit the capital markets/valuation stuff that the regular auditor can't, they aren't structing deals or banking deals like at an ibank, rather double checking numbers for auditing purposes

Yes, comp is LESS than 1/2

(King Kong, 1,236

Points)

on 11/2/06 at 1:30pm

and bonuses wreak. ke18sb has it right.

The valuation exposure these folks really get is related to financial reporting valuation engagements such as SFAS 141, SFAS 142, SFAS 123 for stock option analysis etc.

The "transaction services" group at a KPMG for example more closely resembles M&A advisory work at an IB.

actually, you guys still have it wrong

Points)

on 11/2/06 at 1:50pm

you're confusing transaction advisory services (which is higher level auditing, etc.) with corporate finance which is the same thing bankers do. with the exception of e&y which sold its corp fin practice to giuliani, all big 4 firms have both.

to prove my point, here are the 2006 ytd league tables for WORLDWIDE COMPLETED M&A transactions copied and pasted straight off of thomson financial.

the metrics are rank/advisor/deal volume/market share/number of deals.

simply put, kmpg corp fin wouldn't be number 25 if all they did was value stock options.

1 Goldman Sachs & Co 607,455.20 28.9 280
2 JP Morgan 520,063.80 24.8 265
3 Morgan Stanley 506,284.20 24.1 246
4 UBS 390,237.70 18.6 252
5 Citigroup 389,067.00 18.5 238
6 Merrill Lynch & Co Inc 368,953.50 17.6 188
7 Lehman Brothers 311,971.10 14.9 159
8 Deutsche Bank AG 274,501.20 13.1 174
9 Credit Suisse 248,305.20 11.8 221
10 Lazard 226,094.90 10.8 148
11 Rothschild 194,211.30 9.3 238
12 Bear Stearns & Co Inc 189,578.90 9.0 51
13 Banc of America Securities LLC 136,692.30 6.5 70
14 BNP Paribas SA 93,317.80 4.4 92
15 Wachovia Corp 75,358.00 3.6 46
16 HSBC Holdings PLC 74,126.20 3.5 50
17 Evercore Partners 73,297.00 3.5 24
18 Macquarie Bank 69,325.90 3.3 67
19 Houlihan Lokey Howard & Zukin 67,037.00 3.2 104
20 Dresdner Kleinwort 65,015.00 3.1 56
21 ABN AMRO 59,811.80 2.9 98
22 Blackstone Group LP 56,377.70 2.7 25
23 CIBC World Markets Inc 51,770.10 2.5 52
24 Keefe Bruyette & Woods Inc 42,787.00 2.0 51
25 KPMG Corporate Finance 42,571.00 2.0 298

additionally, here's something cut and pasted straight from the pwc website:

Transactions

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We are well-known in the marketplace for our knowledge and experience in all types of financial transactions:

* Mergers and acquisition - We focus on the deal continuum from strategy through execution to post deal integration, including financial and operational due diligence, accessing the capital markets and valuing, negotiating and structuring deals.

* Strategic and valuation advice

also, as you can see...

Points)

on 11/2/06 at 1:52pm

kpmg does more deals than anyone... the volumes are simply smaller. thus, it is possible to get deal flow out of big 4 corp fin; just not sure how "quality" the deals would be.

thus, if you can't get into a traditional bank, this may be a good way to get your foot in the door. pay is a lot less, but you can always learn what you need to learn and lateral.

at the end of the day your

ke18sb

(King Kong, 1,092

Points)

on 11/2/06 at 2:13pm

at the end of the day your working at a company known for accounting and audit, if you want to work in finance work at a financial instituation

Re: and btw aadpepsi:

buysiderules

(Senior Baboon, 181

Points)

on 11/2/06 at 11:41pm

Monkey_Island:

there is no e&y corporate finance practice any longer

But there is TAS, Transactionary Advisory Services, which is corp fin lite I believe.

TAS is more outsourcing DD

livingthedream

(Senior Baboon, 236

Points)

on 11/2/06 at 11:54pm

TAS is more outsourcing DD type activities to support deals and work on micro caps (at least in europe). KPMG corp fin does a LOT of M&A work, not corp fin lite, but all aspects of the deal, just putting $mm instead of $bn into the old financial models. They're actively seeking to expand this aspect of their operation and are trying to hire/ entice people with IB experience accordingly. I heard that they want to move from #25 to the top ten.

KPMG Org. Chart...

(King Kong, 1,236

Points)

on 11/3/06 at 11:38am

Monkey_Island, break it down, spoon feed it to me. Where does KPMG corporate finance fall in KPMG's overall org. chart? e.g. Economic & Valuation Services are part of "Tax" and then there's Transaction Advisory Services etc.

I'm just confused, tired and useless this morning.

under FAS

Points)

on 11/3/06 at 11:57am

Excellent. Thank you.

(King Kong, 1,236

Points)

on 11/3/06 at 12:38pm

aadpepsi: