T2 or very small boutique?
What would you do?
T2 (OW,LEK,ATK) or choose a small boutique of 15 people? The boutique pays more base salary wise but the T2 beats it by about 5% with bonus if that is fully paid. The boutique is in a suburb of my home city while the T2 is in a large city I have no ties to, which is an interesting proposition and has pros and cons. The T2 is known to work 60-68 hrs weeks on average sometimes more. The boutique I haven’t gotten averages but know it’s def not less than 50 and I’d be shocked if it were less than 55 (maybe 53-58 type).
The T2 is 3 days in office (but will probably go in more in the beginning) and the boutique is 5 days a 30-40m commute from my parents house where I’d prob live for a year.
the boutique is not going to grow and most analysts stay for 3 years, but it’s very competitive and I was told they make 1 offer for about every 200-250 resumes they get. Of the people that have left to get MBAs, apparently everyone has landed at a T10. Also apparently leadership (who is old) is well connected and happy to help with exits after you reach your 2+ yr.
the boutique class size is only 2/3, the T2 would be about 20. Also maybe (?) the boutique would give me more responsibility and I’d learn more? Idk
lmk if you have other questions to consider
Neither travels often.
Based on the most helpful WSO content, here are some key considerations to help you decide between a T2 firm (OW, LEK, ATK) and a small boutique of 15 people:
Work-Life Balance
Location and Commute
Compensation
Career Growth and Exit Opportunities
Culture and Environment
Additional Considerations
Summary
Consider your long-term career goals, personal preferences for work-life balance, and the importance of location and commute when making your decision.
Sources: Boutique IB offer vs. stay non-big 4 TAS, Regional Boutiques are vastly overlooked in IB, Small boutique vs BB / EB, Q&A - Left First Undergrad with Sub 2.0 GPA====>Booth MBA/"Tier 2" Consulting, Ask Me Anything - Federal Consulting at a Tier Two Firm
T2 and don't look back.
Brand, formalized training and career progression are likely to be better. Also, more importantly, from a personal standpoint, I think there's something to be said about moving on your own, being independent and "adulting" as you get out of school. I had the option to live at home after undergrad as well and I am so glad I did not - being on my own helped me grow so much and gave me flexibility to explore and live my life. Lastly, that 5 day a week 30-40 min commute would be TERRIBLE.
Anyways, just my 2C
But does reputation/recognition matter that much? Like, if I am making more or equal (def saving more) at the boutique, and I am trained better/have more responsibility/learn more/access to the 30+ year experts in the field since it's only 15 people, isn't that a massive benefit I would never see at ATK/LEK/OW?
Yeah, moving to a new city is scary, but most of the apprehension comes from the fact that if I work the schedules, I've been told I will have difficulty meeting new people. Monday - Wednesday, 9 am—11 pm and sometimes until 2 am. Thursday, 9am-7pm, and Friday, 9am-5/6pm. I guess it's a benefit that those hours are rarely travel, but that is also true with the boutique. I know myself, and I need socialization/friends. While it seems like a great challenge from afar, I can see myself struggling mentally when I am there.
But yeah, my main question is: How much does the name matter? Suppose I am making more or equal at the boutique with more coaching, better relationships, and people who have friends in high places willing to help their 2+/- analysts exit in 1-3yrs. In that case, associates place well in exits. Is that more valuable than a more "known" T2 with worse WLB and competing against the rest of the industry and firm for exits?
What do you think
Ok so obviously you seem to feel pretty strongly about the boutique, and since I don't the specific details of the firm you are at, my advice is more general about T2 vs. boutique. That being said, let me answer your points:
Re social life: I actually view it in the opposite way. Yes, WLB will be tougher at the T2 but don't forget that 1. it is in a large city so naturally there will be more people to meet 2. yes you are busy during the week but don't forget you have Friday / the weekends too! (which is when most people go out and meet people anyways) 3. I found my closest and best friends in my starting analyst class since you are collocated for 60+ hours a week and getting smoked together. So are you more likely to make those friends in a 20-person class or a 2-3 person class?
Re boutique brand/exits/etc vs. T2: Generally, I will always value the brand and talent (both at junior and senior level) at a T2 over a random boutique. The exits you have mentioned (t10 MBAs) are 100% a normal outcome for T2s as well. Consider the size and diversity of the alumni network at T2 vs. a 15 person boutique. Also, I’m guessing your boutique is industry/vertical-focused? Are you even interested in exiting to that industry? If not, or you are unsure, the broader range of projects at a T2 will be much more ideal for your own learning and future exits. If it’s like a pre-eminent boutique in your industry led by a foremost thought leader in the space, maybe that is another story. Yes you will probably have a closer relationship with seniors at your boutique, I do believe that. Maybe more responsibility as well (careful what you wish for), but either way you go, I am confident you will have plenty of learning in either way. Note the T2 will likely have more formalized and structured trainings (but also informal, on-the-job training / mentorship as well) vs. the boutique, which will likely be a bit more informal / mentorship based.
Again, I don’t have all the information that you do, I’m just an outsider looking in. I would keep talking to people at either firm, but at the end of the day, this is a personal decision and there isn’t a “right” or “wrong” answer. Ultimately, take the data you have and make the decision that best supports your personal and professional goals. Cheers
I faced a lot of the same decisions as a senior. I had previously interned at the boutique and loved my summer. Went for the T2 because I liked the idea of starting in a big class when I moved to a new city (in retrospect, great choice). I missed the boutique for the first year but then found good sponsors at the T2 and now don’t regret my choice at all.
If your T2 is larger (think EYP or OW instead of Kearney) there is a greater risk of falling through the cracks. And the outcomes for that situation will always be dominated by your outcomes at a boutique, which will likely be more supportive. Solution there is to be proactive at the bigger firm and make a positive track record for yourself
The T2 has about 300 people (maybe more) in the city where I was offered. Worldwide I think like 3-5k. Remember, I have no ties to this city whatsoever. The entrant class size is about 20.
The boutique class size is 2 and 45m drive with traffic from my home w/ parents.
I also just got another offer from KPMG in the Strategy division for the city where my university is, so I would presumably know people after college. How would you consider the T2 (LEK, ATK, OW, etc.) vs. the boutique, vs KPMG? I really dont want to make the wrong choice
You’re thinking about the right things. I don’t know KPMG strat but have heard they’re investing in it. Probably would still lean T2. Feel free to PM if you want to talk more specifically.
Heavy considerations: Learning/exposure, opportunity set (what doors are opened/which are closed)
Mid considerations: Location, culture
Low considerations: Compensation
Boutique: Seems great for learning/exposure. Likely doesn't maximize opportunity set... as someone else mentioned, the firm likely has a very specific industry focus. By working here, you are aligning yourself to this industry (and potentially even project type). You could go to B school to make a switch if the fit isn't perfect, but in that case, you couldn't accept a sponsorship (you wouldn't be going back to that firm) even if the firm DOES sponsor. Also, brand/recognition is far from maximized, which hurts opp set. You'll have to work much harder to open doors. Culture and WLB and location are definitely important. If you think the amount of work at other firms would be unsustainable and this would be, then it's definitely a pro. I would say this is the best choice if you can honestly say you want to work in the firm's area of specialty (it's a lot to ask a 21/22 year old to know that already) and this firm is known for being better than the T2 in this area.
T2: Going to be strong on learning/exposure and opportunity set. Maybe slightly weaker on learning and exposure than boutique as access to seniors and client interaction may be less earlier on? Opportunity set, you'll have more brand recognition and it will be that much easier when pursuing exit opportunities. There will be established pipelines into multiple industries, the firm likely sponsors MBAs at top programs, and you can move from a T2 to a boutique (generally) more easily than the other way around. Culture and WLB may be a bit worse. Another consieration is if staffing is local/regional/global and your preferences. Compensation: who cares about Y1, have a long term view regarding comp. This is the best option for preserving optionality, which generally is a value-maximizing strategy.
KPMG: This is going to compromise learning & opportunity, I believe. KPMG strategy is still pretty young and likely won't be winning many pitches against a T2 for an important strategy project. The also likely wouldn't win out against the boutique in their specific area of specialty. You may have some opporunity set given KPMG is establishing itself in these areas/trying to grow, so advancement within the firm may be easier. But KPMG strategy exit opps are probably not going to be that different from KPMG advisory, at least for a while. Tough for me to see how this option would be better than either of the others, unless you know you want to work for a big 4 for your whole career (if you went to T2 you could get hired by b4 very easily and likely would advance faster so even here i don't really see it).
The boutique, from my research, is generalist but has 1-2 common returning PE clients and is historically strong in banking snd telecom. As far as exit ops, it seems relatively recent if you stay in the region (not sure I wanna be in the suburbs of where I grew up forever) but like 50% of the people end up at capital one. There’s a strong pipeline there.
for the T2 I’m most worried abt WLB (apparently it’s a “sweatshop”) and making friends/the social scene that come alone with balancing that, especially because I’ll be forced to move to a new city I literally have zero ties to. It’s large but has bad winters.
Canadiens16 added a ton of insights on learning/exposure and unless you really want to work at Cap One I don't think the boutique makes sense (even then, as Canadiens16 mentioned, a tiny firm has more idiosyncratic risk than a bigger firm and I'm sure Cap One hires from the T2 as well). Social considerations - I get it can be hard moving to a new city without friends there, and maybe you aren't used to cold weather.
1) your setup is temporary. This T2 has offices across the world most likely and if you perform well and want to move in a few years, you can if you hate it in this city.
2) you'll likely end up loving it, because it will force you to push your social boundaries at a critical junction. You'll bond more with your start class as you don't have a familiar friend group to lean on. And you'll have more time to dedicate to work at a time in your life when it pays outsized returns down the line.
i know which firm (boutique) you’re talking about. agree with the others: take T2 and don’t look back.
Agree with a lot of what burner1231a shared. Learning/exposure is the MOST important thing you'll learn out of the gate. Not only will you truly learn the technical skills of the job (e.g., building a TAM model, running a competitor evaluation...), but employers hiring our UG recruits (e.g., PE firms, strat arms of large corps...) also KNOW we train them well and can expect new hires to be of a certain caliber. There is MUCH more risk in hiring from an unknown firm because you don't know how well-trained folks are.
I sense you have a lot of allegiance to this boutique which is fine. However, from a pure "outside-in" perspective, I think most folks would rank these opportunities as follows:
1. T2 - if you're looking for a career in strategy and don't get into MBB, this is your next best option
2. KPMG Strategy - not at-par with the true "T2's" but you can make the case that KPMG should be included with OW, LEK, ATK... not a GREAT case but a case :)... I've seen them as competitors on some of my bids and they generally win work through undercharging highly price-sensitive clients
3. Boutique - for the reasons mentioned above, unless it's a culture you've fallen in love with, this is definitely your worst option. Also note that small, 15 person firms have HIGHLY cyclical revenue - you might only have 1-3 projects going on at one time so, once a project ends, a third of the firm is unstaffed. Boutique firms also generally have a specific niche and rely on a small handful of leaders so you'd likely be limited in the scope of what you can possibly learn.
What is really wrong with the cyclicality? Also, I know like 50% of the boutique end up leaving and going to work at capital one. There’s a very strong pipeline there.
I think the allegiance you’re referring to is me just being afraid of moving to a new city entirely alone and not knowing how to balance that. what worries me abt the T2 is the WLB (it’s apparently a “sweatshop” and knowing no one in the city id be forced to move to.) the city is large, sure, but I have 0 connections, no potential roommates, and how do I make friends in the dead freezing winter working 65 hour weeks??
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