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How is McKinsey corporate finance different from IBD?
 

firefighter's picture
IB
 
Points)
 on 2/26/11 at 3:04pm

Check out the description - sounds exactly like IBD to me (it's not even cultural integration or strategy, they specifically mention due diligence, valuation, negotiations with bidders/targets on value, etc.)

http://corporatefinance.mckinsey.com/aboutus/ourap...

"We assisted an industrial conglomerate in evaluating the benefits, structural formats and process alternatives of the potential divestiture of a large underperforming division. Our work involved sum-of-parts valuation, compilation of a Confidential Information memorandum, disposal process design, and negotiation support."

WellsFargoBaker's picture

its the same shit, but they

 
Points)
 on 2/26/11 at 3:36pm

its the same shit, but they get paid less and work less. mostly ex-bankers who are fed up with the hours but still want to do corporate finance.

ILOVENYGUY's picture

Bankers collect higher fees

(Orangutan, 343
 
Points)
 on 2/26/11 at 5:14pm

Bankers collect higher fees than consultants - this is McKinsey's attempt to get paid more - they have been at it for about a decade without real success

Buyout King's picture

i'm pretty sure this is

(Baboon, 143
 
Points)
 on 2/26/11 at 5:36pm

i'm pretty sure this is similar across similar firms and the Big 4- Deloitte, KPMG, PwC etc all have the same corporate finance as well.

firefighter's picture

So it is basically IBD? I

IB
 
Points)
 on 2/26/11 at 5:47pm

So it is basically IBD? I never see them on the league table though, while I have seen Deloitte KMPG etc.

ILOVENYGUY's picture

There is a very very big gap

(Orangutan, 343
 
Points)
 on 2/27/11 at 9:16pm

There is a very very big gap in terms of people quality between McK and the big 4

GotBushels's picture

In what way?

IB
(Orangutan, 371
 
Points)
 on 2/27/11 at 9:24pm

In what way?

firefighter's picture

McKinsey guys are on par (if

IB
 
Points)
 on 2/27/11 at 9:45pm

McKinsey guys are on par (if not higher) in terms of credentials, grades, etc. than guys at Goldman Sachs, while Big 4 tends to hire solid kids from state schools. But does anyone here know what McK Corpfin is and how is it different from IBD? It can't be IBD because it doesn't appear on league tables while KMPG corp fin M&A, Ernst & young corp fin M&A, etc. are on the middle market tables

7S's picture

mckinsey CF is far from

PE
(Orangutan, 350
 
Points)
 on 2/27/11 at 9:51pm

mckinsey CF is far from IBD

they are usually hired by the client, PE firms, sometimes banks to work on due diligence, JV, M&A, etc topics

so basically they are still consultants that charge a fix fee (not as a % of deal size) but they work mostly on corporate finance related topics as opposed to marketing, strategy, operations

firefighter's picture

but that type of work -

IB
 
Points)
 on 2/27/11 at 9:58pm

but that type of work - negotiation on M&A deals, valuation, etc. from a corpfin standpoint - isn't that what IBD is? I'd imagine an M&A shop providing the same services

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