Is my rationale for wanting to lateral to MBB from IB valid?
I am currently ~2 years in to IB in a Tech M&A group. I chose IB out of my semi-target thinking that growth/PE was my goal, but further reflection and actually working alongside said buyside shops on a few projects from the banking side - I really don't aspire to have a long term career in banking or investing anymore.
My best friend/roommate is an AC at MBB and I have met many MBB consultants through him, and generally the work environment, the culture, the emphasis on communication and relationships, the travel, etc. all align a lot more with what I see myself doing daily versus IB pitching, hierarchy climbing, updating comps/refreshing the model, iterating, etc.
I know a lot of this/similar work will occur in consulting as well (trying to not fall for the grass is greener thing) but as I look forward to the future I feel as if the MBB skillset aligns more with operational roles which is ultimately where I see myself (hopefully C Suite at a public).The leadership ability/people management that seems to be a big emphasis in MBB is also a skill that really gives me motivation. Also the people genuinely seem much more pleasant to be around / generally come from more diverse educational and professional backgrounds which I feel is valuable for me in my 20's versus all the typical IB/PE bros.
For further context my dad is a C suite at a public and I've long observed his role/network and ultimately that lifestyle/work aligns closer with what I see myself doing long term versus PE partners (deal sourcing/PortCo management).
I have started networking and it further gave me confidence that this is possible, but just wanted to hear from you all on your thoughts. I am totally fine with losing tenure/starting at ground 0 and taking a pay cut if it means I will have a more fulfilling career for the next 25 years.
Your rationale for wanting to lateral to MBB from IB is well thought out and aligns with many of the key considerations others have shared in similar situations. Based on the most helpful WSO content, here are some points to validate your reasoning:
Alignment with Long-Term Goals: Your desire to develop operational and leadership skills for a future C-suite role is a strong motivator. MBB consulting is known for emphasizing leadership, communication, and people management, which are critical for executive roles. This contrasts with the more technical and deal-focused nature of IB and PE.
Cultural Fit and Work Environment: Many professionals transitioning from IB to MBB cite the appeal of a more collaborative and diverse work culture. Your observation about the broader educational and professional backgrounds in consulting resonates with others who value exposure to varied perspectives early in their careers.
Skillset Development: Consulting, especially at MBB, offers a broader exposure to strategic problem-solving, operational challenges, and client-facing work. These skills are highly transferable to corporate leadership roles, which aligns with your long-term vision.
Networking and Validation: The fact that you've started networking and received positive feedback is a great sign. MBB values candidates who can articulate a clear rationale for the transition, and your reasoning—grounded in both personal experience and long-term aspirations—positions you well.
Trade-offs: Your willingness to take a pay cut and start fresh demonstrates maturity and a focus on long-term fulfillment over short-term gains. This mindset is often appreciated by consulting firms, as it shows you're committed to the career path.
Grass is Greener Syndrome: It's wise that you're acknowledging the potential overlap in repetitive or less glamorous work in consulting. While MBB does have its share of challenging and less exciting projects, the broader variety and strategic nature of the work often make it more appealing to those seeking a change from IB.
In summary, your rationale is valid and aligns with many successful transitions from IB to MBB. Keep leveraging your network, refine your story, and focus on how your IB experience has prepared you for the challenges and opportunities in consulting. Best of luck!
Sources: Why do MBAs seem to favor consulting over banking nowadays?, Checking in 6 years later [IB to MBB transition], Lateraling Guide for Investment Banking, Checking in 6 years later [IB to MBB transition], Why Would Anyone Go Into Consulting?
sounds good. also i don't think you'll have to start at ground 0 after lateral, from the alumni i know who lateral to mbb with 2 years of experience, they start at senior BA/AC typically. and i don't think you need to worry too much. IB+MBB experience will give you great exit opps, especially in corporate.
Thank you man, great to see more instances where people have seen it done - think with the proper mindset/rationale it's not such a stretch now that I've networked with a couple of people who have made the move .
It sounds like you’re taking a nuanced approach which is great.
I also think that in your stage of your career, you can’t really go “wrong”. Eg if you find that you hate MBB or it doesn’t align with your expectations, you can leave for some other shit. And , for better or for worse, the prestige of MBB is always a nice perk
That will serve you well.
Though for what it’s worth, I think you would be better served going to an actual operating role. MBB teaches you to do a higher level of analysis . It is one
Thing to discuss what your margin should be / the high level plan to improve. It is another thing to go deeper with customers and business processes to actually implement and execute . (For context, I was at MBB and now a startup. Also, for what it’s worth, I am not trying to glorify operating — shit actually kind of sucks , but if this is your goal, just talking about the path that would help get you there.)
Thank you- that does make sense. The higher level operating exposure via MBB to a diverse set of markets/clients to build more perspective before picking 1 company in a specific industry does feel valuable to me hence why I am considering 2-3 years in that space before joining at too junior of a level at a corporation.
I am building confidence I will like it more than IB from my efforts around networking though which has been reassuring.
Also not sure if you will have insight on this, will the family connection in operations/F500 C Suite be worth mentioning in MBB interviews to give context around why my operating goals are more tangible/grounded in reality?
Yeah I know of a number of people who were bankers for 1-1.5 yrs then switched
Any idea if the switch cost tenure / was it to generalist management consulting or to Fin Services / PE groups? Thank you!
I assume it's at the cost of 0.5-1 years tenure + generalist given 1.5 years in banking isn't a lot in reality
For MBB, I think typically you lose all your tenure? For 1.5 years maybe you retain one year? Doubtful tbh… I’d do LinkedIn stalking though
This had to be during the boom periods
Do a top MBA that way you can enter MBB at the post MBA level
Would IB to corporate to MBA to MBB be a decent path?
Yes that would be a great path
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