2 Years in RX, Now What?
Currently wrapping up my second year at a T1 RX consulting firm, at a T1 city (T1 for restructuring activity). Am exploring possible moves out into other careers. I've seen posts on here talking about RX IB and PE, but those were mostly college students; what options do I have as an experienced professional?
Would like to get a bit of deal side exposure, but is lateraling to good RX IB firms hard(er) than if I just interned in RX co and tried to secure a FT RX IB offer? What about PE (deal and ops)? Corp side? What are the processes like, are there structured pipelines or is it a spray and pray situation?
Curious to hear thoughts...
Based on the most helpful WSO content, here’s a breakdown of your options and insights for transitioning after two years in RX consulting:
1. RX Investment Banking (IB):
2. Private Equity (PE):
3. Corporate Roles:
4. Other Options:
5. Key Considerations:
Your RX consulting background provides a strong foundation for various career paths. The key is to leverage your technical skills, network strategically, and tailor your story to the specific role you’re targeting.
Sources: Pros & Cons Summary - Post-MBAs in Restructuring (RX) - any regrets?, Q&A: Restructuring Consulting, Q&A: Former MBB Consultant, Private Equity Associate Regretting Decision, Q&A: Consulting v. Banking, the age old question. By Former MBB and Bulge Bracket Banker.
Just curious, why do you want to leave RX Consulting? Don't most people enter it intending to stay in it long-term?
There's a couple of reasons (travel etc) but the biggest one is the level of stress. I'd rather deal with the IB / PE stress of deadlines and work hours over that in RX co. I've done mainly debtor side deals, and the emotional toll isn't a cakewalk at all; layoffs, facility closures, or liquidations and you'll be working at the client office, with company employees, while you're making those decisions so it's doubly hard. Also, more likely than not you'll be caught between creditors, management, employees, and courts - lots of tension and politics.
A secondary reason is I've got plenty of operator experience, I think it'll serve me well to get some investor experience as well.
Not bashing RX consulting at all, it's an extremely interesting industry to be in, but it does take its toll.
Thanks for your input. Could you give a rundown of what your day-to-day looks like in RX Consulting? As a student interested in this space, I feel like I only see pros about it and not many cons. Interested to hear alternate perspectives.
Sure, not too sure how to structure this, but took some inspiration from the "xx is paradise" posts:
5:05 AM (bc that's the average time this stuff happens, it could be earlier for some, later for others): wake up to a message from the VP with some shit like: “Cash flow’s off by ~$2M. Need to talk ASAP.” I sit up, wipe my face, and open the file on my phone. We missed a $1.5M customer payment and the CFO booked a surprise $600K tax disbursement or something similar
6:15 AM: We’re on Teams. VP’s not even pretending to be composed. “We’re within $300K of the floor next Friday. If AR slips again, we trip.” I’ll update the cash model, shift some timing, and push AP. Neither of us says the quiet part out loud: we might be fucked
7:00 AM: MD emails the group: “Need revised liquidity forecast + mitigation options before 10am.” I call AR, then AP, then the controller. Nobody answers, so I gotta figure a workaround ASAP.
8:30 AM: Usually meetings with CEO/CFO and Treasury, noone knows anything, and we gotta guide them through wtf is going on. Usually end up discussing potentially deferring vendor payments and drawing on the revolver, but legal hasn’t confirmed there's room under the doc.
9:15 AM: Back with the team. VP wants three scenarios built: base, vendor stretch, and revolver draw. I have 90 minutes to rework the 13-week model and prep slides for a lender update. Another consultant works on the bridge, I prep comments
11:00: Talks with the lenders. MD leads the call. I screen-share the forecast. They end up asking us to share a formal liq pack by EOD
12:00: Lunch?? Usually more like lunch while adjusting the model.
1:30 PM: Talks with the PE / HF firm (usually some distressed investor like oaktree, Silver Point, Blackstone, TPG etc). Associate from the fund pings: “Partner wants to know if we can cut OpEx further.” I explain we’ve already pulled back marketing, consultants, and paused hiring.
2:30 PM: COO asks me to prep backup for vendor calls. He wants to stretch $3M in payables into next month. I build a waterfall showing potential deferrals by tier, then join a call with a key supplier. They’re irate. We offer a 30% payment now, rest in 3 weeks. They say they’ll think about it.
4:00 PM: Lock in the model. AR has committed to collections. AP is re-timed. CapEx cut. Still close to the floor, but enough runway to buy a few weeks. I email the revised model, liquidity slides, and mitigation tracker to the MD.
5:30 PM: Build the deck for the board. MD tells me to take the lead on the board deck. “High urgency, low drama,” he says. That means no panic but every chart better be airtight.
8:00 PM: Once a bunch of shit happens between 5:30 and 8:00, the deck finally gets done, and I send it to the MD. Comments: “Page 5 needs a risk section. Page 7 should show liquidity before and after mitigation. Take out the revolver draw for now it spooks them.” I make the edits while we’re still on the call.
10:00 PM: One of the lenders replies to our update: “Appreciate the transparency, need more clarity on timing of AP deferrals.” VP asks me to pull a vendor-level payment aging. I generate it and send. It’s rough. Half our vendor base hasn’t been paid in 60+ days.
11:30 PM: Finally send the damn deck out. liquidity bridge, mitigation plan, vendor exposure, and updated risk flags. MD replies: “Let’s regroup 7am. Nice job.”
12:30 PM: Sleep. Usually get a message from the CEO asking about something that I respond to if urgent, if not that's a problem for the next day.
This is a super high level overview, there's usually 10x more stuff happening between us, the company, legal, bankers, and the PE firm. Could write a whole book on it.
Not in the US, but from those I know and speak to, most end up staying at a T1 firm (i'm sure you've heard this), but I saw a few move to RX IB teams too such as RX HL but tbh your comp will likely stay similiar or increase slightly with minimal drop in stress from what I've heard (the hours are still significantly rough), also saw a few move to small PE shops, and occasional corp dev moves too. I also noticed a few directors/vps open private rx practices whereby they bought and turned around small/medium sized businesses. Depending on your level, have also heard of a few moves to CFO too.
From the ones i saw move to IB, those with less than 3 years went over as an1, an2, and occasionally an3 depending on what t1 your moving from, experience in those roles etc, and those with 4-5 years exp all went over as associate. I have also seen directors go over straight to VP in rx ib from T1 teams too (FTI, A&M)
hope that is helpful mate
I see, that's extremely helpful. Yeah I'm exploring the feasibility / straightforwardness of moving to IB/PE. Wonder if there's a difference in ease between US v Europe
I am in Australia and I've seen it happen a few times, with networking you will get interviews, however the skillset is still somewhat different, I think if your trying to go to a sizeable shop you'll need to prove your very across the technicals especially at the associate and above level but at the analyst level I do know they are a lot more forgiving and the move appears to be easier. In our team we deal a lot with the IB shops so I would assume there are a lot of transitional skills. Funny enough I think PE is more easier for a move given you can go into an ops team where the rx skillset is desirable, especially from a tier 1 shop
Eos deserunt quia ex minus ab. Est cum exercitationem eaque nihil corporis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...