Restructuring (RX) Consulting Placement into MBAs?
Hi all,
Interested in how much of a target top restructuring consulting firms (Alix/FTI/ A&M) are for top MBAs. How do they stack up against MBB / BB IB / PE etc when you adjust for application volume (because I assume there are a lot more applicants from MBB, IB etc than from RX Cons.). How does placement change as you move down the tier list of rx consultancies.
Also, do they usually sponsor MBA's? Would really value any thoughts.
Bump
Top restructuring consulting firms like AlixPartners, FTI Consulting, and Alvarez & Marsal (A&M) are well-regarded in the industry, but their placement into top MBA programs is generally less frequent compared to MBB, BB IB, or PE. Here's a breakdown based on the most helpful WSO content:
Placement into MBAs:
Sponsorship for MBAs:
How They Stack Up:
Key Considerations:
In summary, while RX consulting firms like Alix, FTI, and A&M can place candidates into top MBA programs, they don't have the same level of representation or sponsorship opportunities as MBB or BB IB. Candidates from RX consulting should focus on leveraging their unique experiences and building strong networks to maximize their chances.
Sources: Top 5 Restructuring Consulting Firms 2020 (my opinion), Pre-MBA Associate Recruiting vs. B-School Sponsorship from MBB?, Thoughts on Restructuring Groups?, What’s Harder? MBB or EB/BB, Q&A 2.0: 3rd Year BA/A/AC At MBB Going To UMM/MF This Summer
Bumpity, also interested
Bump, very curious as well
Bump
deleted Misread original question. I can't speak much to the placement into MBA programs. But I think you are right, the volume from IB/PE/MBB will be higher. Part of this is because many Rx/Turnaround consultants already have a lot of experience and many stay in the industry or move to something closely related. An MBA isn't typically going to offer someone much value who is already in the industry. That being said, if someone was able to get Rx experience at a younger age, then wanted to go the MBA route to move into one of the areas mentioned above, I think they would make a great candidate.
Would you say an MBA is required / extremely helpful to make the jump into IB / PE, from RX consulting, or not? Building on that, what are "closely related" roles that RX consultants move into typically? Also, based on your response, the gist is that it's rare to have RX experience at a younger age, would love some color on why...and what the path forward for many of those people is.
bump
It depends. I have seen plenty of Rx/Turnaround consultants go straight into MM Rx IB or MM M&A IB roles, which isn't uncommon.
If you are trying to get into an EB or BB, you will likely need to go Rx Consulting--> MBA--> IB. But I have seen a few exceptions, like Houlihan Lokey Rx group hiring someone directly from a consulting firm, although it is not the norm.
To address your other questions:
(1) Closely related roles would include CFO or Director level role at a former client, CFO for PE PortCos, Private Credit, Interim-CFO work, Rx IB, and to a lesser extent Distressed Debt and Distressed PE. But I have also found a lot of people stay in the industry once they get in, with the main reason for leaving being the travel with young families.
(2) It is rare to have Rx experience at a younger age because those firms are dealing with companies that are generally on fire and require financial, operational, strategic, and legal support. The Rx consulting firms need to provide that in a very short amount of time while also negotiating with creditors. Because of this, there generally isn't time to train someone right out of college on basic, real-world accounting and finance concepts. That is why you see a lot of junior team members at these firms with at least a couple years of experience. From what I have seen the bare minimum is Big 4 audit experience, but even that is not a strong case to get your foot in the door. It is more common for junior levels to come straight from IB/PE or have some combination of Big 4, FP&A/Strategic Finance, Commercial Lending, TAS, etc.
One caveat to point out, the Big 3 (A&M, Alix, FTI) do hire more junior staff out of college or MBA programs than smaller to middle size firms, but their "classes" aren't nearly the size of an IB class, much smaller. The Big 3 are able to do this because of their numbers and the size of their deals, which allow them to assign a small army of consultants to a deal, which then allows for more hand-holding of inexperienced hires who can focus on a very narrow portion of the engagement. At smaller to mid-size firms, the juniors will have responsibility for a much wider portion of the engagement, but the deals will be smaller. But both would be great experience.
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