MBA Recruiting Strategy: IB Internship -> Consulting FT

What are some of the difficulties associated with recruiting for both IB and Consulting? Time constraints immediately come to mind (info session scheduling, interview prep, etc.) but anything else I should be wary of? From what I've read elsewhere, it's not impossible but may require that I narrow my efforts to a few companies in each industry.

I'm currently Big 4 MC focused on financial services and am interested in but not sold on going IB post-MBA. Given that uncertainty, I see two possible avenues:
(A) IB Internship -> IB FT
(B) IB Internship -> Consulting FT (tier-2 strategy)

My thought is that this background + target MBA will help me secure IB Internship and test the waters. Then, assuming I don't like IB, then my experience (Big 4 MC FS + target MBA + IB Internship) will still play nicely into Consulting FT (tier-2 strategy), especially if I want to stay in FS.

Does this strategy seem viable? What are my blindspots? (e.g. IB Internship as red flag to Consulting FT recruiters).

Thanks!

 
Best Response

The major issue for recruiting for both is as you mentioned time constraints. Time is important for networking, mba2 coffee chats, technical prep, etc. Another big issue is that firms from IB and consulting may have corporate presentations or events on the same nights that may cause you to miss an event. Keeping your stories separate can also be challenging, along with both learning casing and IB technicals. Blind spot may also be that you come off not passionate about either industry as well. Don't put on your resume both consulting and finance club.

I know of a few kids that did it (less than 4-5) and half did well.

Your strategy though does sound possible. Focus on the IB recruiting first year and then see if you enjoy it or not for FT. A bunch did this my year in bschool and they actually did quite well (mck / Bain) in consulting interviews after studying for their cases. The IB internship looks good on resumes, in addition to your prior Big 4 experience.

 

The program makes a big difference here. At an MBA business schools ">M7 the full time recruiting cycles for top consulting firms are very strong. Outside of that, probably less so, it's going to be hard to turn down a bird in hand to try again for consulting.

Those that did both at my school tried to go all in on both; they almost unilaterally ended up all in on banking and recruited at maybe 1-3 of MBB on the side. That was about the most that folks could handle. There is too much overlap with events. You can miss some of the stuff for MBB (not the dinners but on campus stuff) but can't miss anything for IB. For internship recruiting, you really shouldn't miss events for the T2 firms. Full time recruiting they don't seem to care as much but they want some TLC during recruiting.

You mention T2 specifically - note that those firms are less consistent with full time recruiting (ATK doesn't recruit full time, they only take interns, and last year Deloitte didn't recruit full time but that was an anomaly after a bad year). MBB takes a lot, but this is where the program strength comes in.

Bear in mind too that it's really, really hard to turn down those IB signing bonuses to rerecruit. They blow up (i.e. you lose a huge kicker) before full time recruiting starts for consulting. You'll get the bonus without a kicker from the consulting firm you sign with (usually ~$15k less than those who intern). For example, you might be giving up a $70k signing bonus at Goldman (I think $170k if you're a woman, could be wrong) for a $20-25k signing bonus at a T2 consulting firm when the consulting interns that sign get ~$40k - still less but a lot more spending money for year two. Those loans start showing up in your nightmares as you agonize over the decision.

IB re-recruit is almost nonexistent (Citi took a few this year as well as lower tier firms - I think Houlihan and Jefferies both picked up full time hires in OCR at my school), so if you want to try the internship is your only option. You'll need a story as to why you are making the transition; not that hard, but consulting will look twice at an IB summer and want to understand why you recruited for Goldman and not them in the first place. Investment management roles have a similar issue if they target consulting. It's not a deal breaker but there will be a few raised eyebrows and firms will wonder why you're leaving the money on the table - did you wash out? Couldn't hack the hours? Couldn't handle pressure? Be prepared when the time comes. Maybe go out and make a baby in a city outside of NYC/Chicago/San Fran - that's a pretty rock solid excuse.

 

BreakingOutOfPWM brings up some additional good points about the program strength and issues with turning down that nice IB sign on bonus (this year was 60K - 50k sign on, 7.5k early sign on, 2.5k relo or completion- mainly across the street with a few 75K boutiques (e.g., guggs / evr). I didn't go to a M7, but we still did well with the MBB / LEK and few other tier 2's for 2nd year recruiting. And he's correct too regarding Deloitte and ATK. It may be tougher re-recruiting from Owen / Gtown. If you do go IB -> consulting, it's easier if you walk into the consulting interview with an offer in hand, so make sure you work hard throughout the summer even if you don't enjoy it.

 

I hate to say it but if you're recruiting from Owen/Gtown - I'd do your research before you start recruiting and be 95% sure either way. The T2's might only pick up a few extra people in full time, it's competitive at top programs and those schools will be even more so. They're great programs and can land you either role, but I wouldn't assume you'll have the same flexibility as people at the big target programs. You might want to track down an alumni who pulled it off (LinkedIn can help or maybe alumni relations, though they may be wary of linking alumni to prospectives before you commit) and ask them what the odds and challenges are.

 

Thanks guys, all good points and very helpful.

Summarizing takeaways below. Lemme know if something is missing or misstated. Additional comments always appreciated.

  • Should connect with relevant alumni (understand odds/challenges of IB internship -> Consulting FT)
  • Should chat with career services on T2 firm consistency (i.e. which definitely do FT OCR, not only Internship)
  • Probably best to recruit 100% for IB internship, do really well, and return to campus offer in hand

Any thoughts on avenue (C) below as a fallback? (A) IB Internship -> IB FT (B) IB Internship -> Consulting FT (tier-2 strategy) (C) IB Internship -> Consulting FT (my old Big 4 MC)

I realize it might be perceived as odd / kind of a waste to return to same firm and role after MBA. Just doing some contingency planning -- not really sure what networking in addition to / outside of traditional on-campus channels for (C) would look like if (A) and/or (B) don't work out. Maybe more of a question for career services, but lemme know what you think...

 

It's totally doable. This is one of the only feasible recruiting combinations (consider the opposite: IB and PE).

Focus on IB recruiting your first year, but meet a few representatives from consulting firms (especially MBB) in your desired geographies and be clear and upfront that you want to try IB for the summer and ask them about FT recruiting in consulting. They will understand and tell you that they hope you consider them for full-time; that there are more spots in full-time; that bla bla. In short they will not have a problem with it. And remember: it gives them pleasure to poach IB candidates.

I have seen more people do this play than I can keep track of. (At my target MBA, getting an IB job was ridiculously easy, and MBB were the three largest employers; LOTS of people switched from IB summer to MC full time).

The truth is you're the weak. And I'm the tyranny of evil men. But I'm tryin', Ringo. I'm tryin' real hard to be the shepherd.
 

Bump - I am in similar situation and currently considering doing similar path too. Right now I work in technology strategy in Financial Service as a consultant (think the other big one outside of the Big 4).

Got into an M7 school and will start this year. Post-MBA I want to work in strategy (Tier 2- Strategy&, Monitor, or MBB) in FS or transactions-related consulting. I am considering of doing an IB internship to get 1) technical skills - I have a technical background (engineering) but haven't really had much technical experience much since graduating 2) exposure to transaction/deal experience.

My question is - how risky is this move? You almost need two transitions for this path (the first move from consulting to IB, then back to consulting). What are some of the example pitches/stories (their motives) you hear from folks who have done this?

 

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