McKinsey Corporate Finance?

I've got a little bit of BB experience and I am interested in applying to McKinsey's corporate finance practice (BA level). What is it like, compared to IBD? What's the job like, what are the hours like, exit-opps, and so on? What is internal mobility at McKinsey like as well (for example, at BB's theyre generally quite flexible)?

Let me know - thank you!!

 
Best Response

Frankly, cannot really recommend it. The consulting model and CF don't fit together. There are 3 main issues:

1) There are few successful CF partners, which negatively impacts development opportunities for juniors: If you want to be successful at a strategy consulting shop long term, you need to build client relationships, and serve these clients continuously. Partners would have 2-3 core clients they would have been serving over many years. This doesn't square well with the much more transactional investment banking model. There is constant infighting over who "owns" a particular client. If for example a manufacturing client wants to do a M&A transaction, the partner covering the client would ask a CF partner on board to help. However, most of the credit would go to the partner covering the client, not the CF partner. The implication of this is that there are few "true" CF partners, but most follow the normal generalist model covering 2-3 clients, and do some CF on the side.

2) The other big issue is that few clients are prepared to pay for CF services upfront. Fees can easily run into millions before a deal even comes close. If you take a bank, it's the bank's risk, and if there is no deal, there will be no fee (apart from a small retainer maybe). If you take McK, you will get a bill regardless. Clients don't like it.

3) The value add is not really clear. What does a strategy consulting shop bring that a bank doesn't? Typically it's being neutral (will not push for a deal because the fee doesn't depend on a deal happening - but that's a high price to pay for neutrality...) and a slightly better perspective on the client industry. Hence a lot of the CF work is strategic DDs. However, the quality of people at McK CF is generally not at par with the BBs. Not so much because they are not intellectually top notch (they are), but because they are not in the flow, lack the transaction experience, and are not apprenticed well.

Bottom line: If you want to do McK, try it - it's a great firm, but don't do CF. Opt for an industry practice instead (e.g., FIG, automotive, whatever you are interested in), and do some CF as a "hobby". If you want to do CF, go to a BB.

 

as a CPC analyst, you'll basically be doing a lot of the modeling and the analytics that supports the corporate finance practice of McKinsey. it's much more of a support position rather than a truly analytical or consulting role. you will develop some modeling experience but for the most part, this program tends to be much less competitive than the business analyst positions and therefore IB roles. as a way of context, i'd think that being on the advisory side of a big 4 accounting firm would prepare you better for a transition to banking than doing CPC.

​* http://www.linkedin.com/in/numicareerconsulting
 

Not sure you would ever make the move to BB from there though. If you can get into McK, you can get into BB straight out of school (regardless of market conditions).

I know a guy who made the jump from the group to MM PE. I understand that he ended up doing a lot of modeling but not all of it was transaction based stuff (i.e. some capital budgeting for clients, etc).

 

NY is definitely the CF hub, but generalist BAs don't apply to the practice or work with it exclusively; they get staffed on CF cases on a case-by-case basis. You go through your staffing/professional development person. If you express an interest in corpfin, they'll try to find engagements for you.

One of those lights, slightly brighter than the rest, will be my wingtip passing over.
 

From what i've heard from friends:

They do a lot of merger management, but that is actually somewhat of a separate sub-practice. I think big 4 advisory is relevant enough work experience assuming your other stats are solid (and obvs contingent on things you can't control like the quality of the competition).

 

they do merger management, due diligence, joint ventures, portfolio management, private equity related work

however as an associate/business analyst you are still in the general pool, so you will still do projects in other functional/industry areas

depending on the person, you will obviously do more CF work than your generalist peers, but can range from 10%~60%, this is a result of the project pipeline and consultant availability

 

you might get some better responses if you asked a more specific question.

what did you want to know? work/life balance? exit opps? interview differences vs. regular McK?

 

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