Hi everyone,
Currently a first year analyst in corp dev (M&A) at a mid-sized pharmaceuticals company. I landed this position right out of undergrad after doing a summer in MM IBD. I haven't seen many clear answers on exit opps out of entry-level corp dev, but I'm looking for anyone to share their experiences exiting from entry-level corp dev into other buy side roles.
Thanks
I agree with most of the above. PE is possible out of an entry level corp dev role. Difficult but possible. I started as an analyst in a corp dev team at a ~F100 and will leaving for PE in a couple of months.
It is not easy and you will need a solid sales pitch as to why they should hire you over a banker (superior industry knowledge, high deal flow, exposure to diligence, legal docs, etc.). You'll really have to sell the PE firms that your experience is as applicable to PE as banking. Your PE options will likely be limited to firms that focus on pharmaceuticals (I'm joining a PE firm in the same industry as the corp I work at). Mega and large MM will also be extremely difficult. You're going to need to find smaller to lower MM firms in your industry.
You'll also have to nail the LBO and case studies. This required some extra practice for me because my corp has a healthy balance sheet and typically just uses cash to fund acquisitions. The WSO PE guide was a big help in preparing for interviews and case studies.
Sure, but keep in mind this will vary for everyone as I imagine CD roles are not uniform.
Superior Industry Knowledge - I was fortunate enough to work in a group where they thought it was important for me to really understand the company / industry. From day 1 I was visiting manufacturing sites, attending industry conferences, etc.
Strategic Rationale - I think one big advantage is that I've been constantly working with our company's leadership and strategic business managers. We work very closely with them and I was able to learn a lot about the strategic rationale for all of our acquisitions. This will be the highlight when talking about deals with PE firms. They want you to know more than just all of the numbers. They want to see that you are starting to think like an investor (Why not just how).
Diligence - In my experience (could be wrong) a junior bankers main exposure to diligence is managing a Q&A list and loading / downloading files to a VDR. They don't spend a lot of time preparing or reviewing the documents. When we were divesting a business line, I was actually helping to create the documents that were used to answer the seller's questions. I learned a ton through this process. On the buyside I'm working with our back office functions like HR, Tax, etc. to see where there might be exposure / issues.
Deal Flow - This will be highly variable, but my company is very active and I was fortunate to work a lot of deals. Some were relatively high profile, which I think helped during recruiting.
I was also able to travel internationally several times and participate in SPA/APA negotiations (not as exciting as I thought it would be..), conduct diligence, meet with management teams for potential acquisitions / JVs.
So, overall I think you'll have to demonstrate that not only did you learn how to model / plow through a VDR, but that you're comfortable with the deal process, interested and knowledgeable about your industry, and have started to think and act like a principal investor.
please excuse grammar / typos