Moving from IBD to a Corporation - Mission Impossible?

I've read a few stories about guys with industry experience moving from e.g. Pharma to IBD (industry team) or PE (portfolio company).

But.. can you do it the other way around?

After a 2-3 year stint in the Chemicals team of an M&A firm or a BB, if you can't hack the crazy hours anymore or just don't want to do M&A forever, what are the sort of opportunities that would exist for you in the Chemicals sector?

p.s. I'm only using Chemicals as an example, info on other sectors would be great also

 
Best Response

In fact I almost think it's easier to move from IBD/PE to industry rather than the other way around. It's more common to go from IBD to other finance roles but I know of people who have gone to actual companies instead.

Most common are corporate development/business development/strategy roles, all of which involve some degree of M&A/partnership deals, some integration work, and some business planning.

 

dosk is right. "Mission impossible?" Of course not. Corporations would love to have a former banking analyst join the management track program because they know banking is one of the best, if not the best, structured two year program to develop your financial technical skills (not to mention work ethic). The only reason you don't see as many examples of it is because compared to the analysts that choose more lucrative (and stressful/hour intensive) careers like private equity or hedge funds, and also analysts that choose to something completely outside the field of finance, you're left with a small percentage of analysts that go into industry. But it's a very easy move to make.

 

I am an example of an analyst (2 yrs BB and 1 yr MM) that went down this path. Currently I am working on a few biz dev and corp stgy deals and I do most of the financial modeling for my business unit.

It has been a good experience for the following reasons: 1. Much better work-life balance. I work about 55-60 hrs/week. Most corporate jobs get you out earlier, but we're launching a new business model next year so the pressure is on. And frankly, I prefer to work 55-60 hrs/week since ppl in the corporate world recognize it 2. If you work for an IB, you never gain "operations experience." I don't do much operations, but I can now truly appreciate and understand the efforts that go into building a business and running it. It is extremely tedious and very involved... way beyond what one could ever imagine if you always worked on the IB-side. 3. You can truly come to understand a certain market and product. Bankers do understand a business models and markets, but they generally lack the deep knowledge unless they have direct experience.

Downsides 1. Some of your co-workers do not share in the same work ethic as you. Can drag down the process when you need people to move full-speed ahead, but I haven't experienced this problem too often since my group is connected to the CEO/BU President.
2. Pay. I won't clear over $130K this year but frankly I can give two shits at this point in my life b/c this is part of a path in my career and I worked like a dog for 3 yrs + I actually work out and enjoy catching-up with friends.
3. Lack of financial data resources at times. Sometimes I wish I could order a research packet on a slew of competitors or download a comp set from CapIQ.

With that said, I don't see myself doing corporate for the rest of my life, but rather view it is an experience I can take with me after 2-3 years. As others add comments I'll chime in... back to work for now.

 

Where do you think most people who don't want to continue in IB/HF/PE goto? Moving to CorpDev is the other big intake of ex bankers who like finance. Both Gamethoery and Dosk are right. It is also a route that many PE guys will take after a while, that is moving to a portfolio company in a VP of finance type role.

Moving from a company to banking will often require an extra degree or a very senior title. So, either you would get an MBA or you would already be a CEO and just come in as an MD.

--There are stupid questions, so think first.
 

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