How common is IBD > MBA > Consulting?

I'm trying to gauge if I'm doing something stupid by planning an IBD > MBA > Consulting move. Honestly I know jack about what I want right now except to be successful and make it rain money all day so I'm trying out banking for a bit. I want to know if this type of move is common at top b-schools or if there is no added value from going from banking to consulting. I'm drawn to consulting b/c in 2006 McK was the most desired employer of MBAs... I just don't have firm knowledge why...

 
PiperJaffrayChiang:
less painful pre-mba? can u explain or do you mean less painful than banking now

Can say for the poster. But I believe pre-MBA. Part-time of reason I choose consulting is it's not as killer on your schedule. I like the more social aspect, lots of HH. The flexibility in changing projects every few months also helps keep it relative interesting. Travel like my current project sucks and wouldn't mind changing off of current project soon. Though at times when it was hard getting on new projects with the economy as it is/was, it can get kind of stressful (in a very different way).

Hoping to leverage into a top MBA. After that not all that sure myself. Maybe, to do some work McK or Bain. VC(?). Can't say.

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business schools are suspicious? you mean the employers at b-schools are suspicious? why on earth would they be suspicious, the whole point of bschool is career switching. Plus I have had consulting internships at top firms, just not McK.

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I knew a good number of ex-bankers at my M/B/B. I think the more common (desireable?) option would be to go to PE post-MBB. Consulting firms would like your strong modeling skills... and you should be able to pick up any soft skills in b-schools.

As an aside, most desireable ≠ best for you, as a rule... but I know you know that already.

 

I would guess that since the work experience is pretty relevant, it won't be very difficult to answer the transition question. If you network well, you should be fine.

(This is just my opinion and not saying from any experience. Sophomore from target/semi-target)

"I do not think that there is any other quality so essential to success of any kind as the quality of perseverance. It overcomes almost everything, even nature."
 

A) BCG and Bain aren't in Charlotte, so that doesn't help your chances B) My estimate is that 80-90% of pre-MBA hires are direct from undergrad, with virtually all of the rest coming from tier 2 firms or non-MBA/JD/MD graduate programs (i.e. Engineering, Public Policy, MSF, etc). These folks might get partial tenure credit, or might start from scratch, depending on what they were doing before, and frankly, what they can negotiate. C) One anecdote I have is a top student from Wharton undergrad who worked in commercial real estate for a year or two, came in with no tenure credit. No idea how he networked in but I imagine he developed relationships during undergrad recruiting.

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petergibbons, I was just using Charlotte as a hypothetical example. I just wanted to know if working in MM IBD in any major American city could result in me being able to network into MBB consulting in the same city.

 

A guy from my group lateraled to McK a couple years ago. It's doable, but rare because MBB takes very few lateral hires. You generally need an internal referral. The guy I know joined as a senior BA - equivalent to a 2nd or 3rd year analyst.

 

I interned at a BB, and after that I switched my focus to management/strategy consulting. It wasn't necessarily that I hated banking, but for what interests me most, consulting offers better learning and exit opportunities.

Some people will tell you that what they did (in this case banking or consulting) is the only/best way to start a career, but you have to really analyze what your interests, strengths, and career aspirations are and choose the right place to start out for your situation. Also, few people will be honest and tell you that they hate their job or many aspects of it while they are still at that job.

Are there any questions you had in particular, or did you just want a show of hands?

TCB... you know taking care of business
 

I did three IB internships; my full-time job is now in consulting. Didn't hate IB - in fact, I still like the work. Hours, though. I can't take the hours. Also, consulting aligns a little better with my end goals.

Currently: future neurologist, current psychotherapist Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)
 

A solid 30% of my friends interned in finance of some sort before choosing MBB full-time - MBB likes the internship. We haven't lost any of our interns to banking - but I suspect that that's because, after you've spent a summer working consulting hours, there's zero appeal to doing even more work full-time.

One of those lights, slightly brighter than the rest, will be my wingtip passing over.
 
2x2Matrix:
A solid 30% of my friends interned in finance of some sort before choosing MBB full-time - MBB likes the internship. We haven't lost any of our interns to banking - but I suspect that that's because, after you've spent a summer working consulting hours, there's zero appeal to doing even more work full-time.

Agree, finance internships are a good stepping stone - I think the majority of our incoming analysts who weren't summers have banking internship experience.

 

Couple really basic questions that are probably easily searched but...

1) Typical number of hours for first year? I understand most of the week is spent on client site?
2) Typical pay?
3) Do you have time for any semblance of a life?

One of the things that really bugs me about banking is how shitty the pay has become when you look at it from an hours perspective. The bonus is nice, but at the rate it's taxed, not so nice.

 

Is banking truly the best stepping stone? How about a consulting internship with a tier 2 or tier 3 firm or a corporate strategy/corporate finance at a F500? I'm wondering if someone should do a summer banking stint anyway for the experience and opportunity if they eventually want to go into MBB/tier 2 consulting after graduation...

 

I would also like a response to this. I am looking at what would be my best internship opportunity next summer and trying to decide what positions someone at a non-target best for MBB.

 

MM PE and Corp Dev are definitely my top options. There seems to be a lot of information online about those two as exit ops. I haven't run into an article or thread that talks about going from bankng into consulting so I was curious about the transition.

 

One of the guys that interviewed me for McKinsey first did 2 years at Goldman IBD then started as a BA at McKinsey.

Correct me if I'm wrong, but I don't think you can shortcut into a higher role especially for MBB.

"Rage, rage against the dying of the light." - DT
 
beta26:
One of the guys that interviewed me for McKinsey first did 2 years at Goldman IBD then started as a BA at McKinsey.

Correct me if I'm wrong, but I don't think you can shortcut into a higher role especially for MBB.

Ok. So would that mean you'd have to go back to a grad role? Surely not? If so, are you implying there are equivalent ranks among the two field. E.g. analyst=consultant, associate=senior consultant

 

yes indeed. my view is that in consulting, you use your brains but the pay is shitty. banking: pay is good but your brain rots. trading: thinking every day, and financial upside > banking.

just know that in strat consulting that you'll either be doing staff augmentation or coming in as a falsely neutral third party to internal squabbles at the client site.

 

recently made the transition.

except he went into a smaller consulting firm primarily doing restructuring ie Alix/Alvarez.

you may want to look at Managementconsulted.com for ideas of smaller boutiques.

He also worked in corp dev for a few months post banking.

He mentioned that his managers were all from McKinsey and that it may be a good way to get yourself introduced to MBB by going through Corp Dev.

you may want to consider work in corp strategy/biz dev maybe at a greentech or VC backed company in addition to the options you mentioned above.

I'm making it up as I go along.

------------ I'm making it up as I go along.
 

I know many people from undergraduate who leveraged contacts with alumni to switch positions. I would reach out to the alumni base at your university and speak with them about their careers, develop relationships - once you've shown interest and suitability for a consulting role some will keep you in the loop if positions are available. From then on, they will most likely vouch for you in the recruiting process.

Plus it's good to get personal insight into the industry and particular firms.

ChasingConsultants http://chasingconsultantsbreakingbankers.blogspot.com/

 

The crickets you're seeing is because it rarely happens, unless you have a strong "in" at the firm already.

I know factually that there is a BB analyst lateraling into a NY MBB office this fall, but this is a very rare occurrence. Turnover is lower in consulting, so experienced hires make up an extremely small fraction of most incoming classes. If it really is your goal, I wouldn't just focus on Big 4, but rather all tier 2 firms, especially things like EY FSO or OW where your finance background might be seen as a positive.

 
Qayin:

I guess you could easily transfer to some corp fin or financial services consulting group. Not sure about the generalist strategy, but can't see why not (big 4 is really not that picky).

Agreed, although if management consulting is the end goal, MM Bank --> TAS or Corpfin --> Strategy is a giant pain in the ass, and that first step in my view, is actually a big downgrade vs HLHZ/Macquarie.
 

This rarely happens because Mgmt consulting firms would not know what level to bring you in as. If you are willing to go back to the analyst level, I would imagine it be more doable.

Why would you lateral to Big 4 consulting? I'd say Top 20 MBA is very doable w/ MM IBD, a decent GMAT/GPA. Your previous experience doesn't really matter for MBB after you enter a stellar MBA program.

 

@gf1990 I was under the impression that mgmt consulting is looked upon more favorably for an MBA (considering there are so many analysts applying right out of IBD). I have thought about the PE path, but I'm trying to build up an MBA application that is unique; hence, don't want to follow the 'herd.' I would LOVE to get into PE ofcourse (money and all), but I don't think it would align well with my goals. I am also a female, and hence want to eventually settle down. :)

 
Best Response

@pphi I think you have some overall thinking left to do. To answer your original question, IBD --> Tier 2/3 consulting is definitely doable. Not easy (depending on exactly which Tier 2/3 firm you want), but absolutely doable. I know a few people that had banking backgrounds come into Deloitte S&O, and many more go to good firms like OW, and lesser firms like EY FS.

I would check a couple of your thoughts and perspectives though. First of all, Tier 2/3 consulting doesn't look any better than finance/banking does for business school, and both are equally represented populations in the applicant pool. That being said, definitely wouldn't apply after a two year analyst stint - would get at least four years, some way or another (promotion to Associate, PE, something else, whatever).

Business schools claim to want unique, but honestly, they don't really mean it. HBS is still going to accept a few hundred MBBers, bankers, and PE guys/girls. Going from MM banking to Tier 2/3 consulting won't be unique - it'll just be mediocre. Neither will be an "elite" firm, and more important, by cutting both experiences off at around 2 years, you simply won't have the same opportunities and experiences at either that you'd have if you did one for the entire time.

On that note, and more importantly, if your goal is to start your own business, why don't you go to a start-up after banking? You'll have plenty of opportunities, if you seek them out, to land at a start-up after banking if that's what you want to do. Moreover, and this would be incredibly difficult, but look for a role at a VC firm (yes, again, this isn't easy). What's a better way to learn about start-ups than either doing one or working with one? It will also give legitimacy to your MBA goal of starting your own business, since anyone can just say that they want to start their own business.

Lastly, do you really think that PE is a lot of work, but starting your own business isn't?? I would argue that no one works more than entrepreneurs and/or small business owners. Might be something you want to think through as you seek a family friendly career.

 

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