Q&A: Corporate Development and Investing Associate

Question

Hi Monkeys,

As I've extracted great advice and wisdom from the community over the years, I figured I'd take some time to answer any questions for the community on my experience.

Education:

School: Semi-Target / Large State School 
    Degree: Finance w/ Honors
    GPA: ~3.9
    Relevant School Activities: School Student Hedge Fund

Internships / First Job:

Sophomore: S&T @ MS / GS 
    Junior: M&A @ JPM / BofA / Citi
    First Job: 2yrs at M&A @ JPM / BofA / Citi

Current Role:

Corporate Development & Investment Associate at med

Disney Disciple · Accepted Answer

How does the team think of deployment of capital? $XB targeted over a certain time frame? Annual minimum to be deployed?

Great question - we do not have a targeted amount of capital deployment over  a certain time. We are more concerned with using the capital that we have efficiently. IE making the right decisions between buying back stock, paying out regular or special dividends, and making acquisitions with cash flows of our businesses or with money raised from the capital markets.

What's the main source of funding? Holding company cash flow?

Disney Disciple · Answer

Hmmm, that's a good question. I can't say that I have the answer to it, but perhaps can provide some useful guiding questions / observations:

This one seems obvious, but are you actually interested in the role?
    
        Something I have come to place better weight on is not just considering opportunities in the context of where it puts me next, but instead considering if it is helping me build the skillset / knowledge base / network that will get me where I want to go
        What is your current level in banking? I assume from your commentary that you're an analyst?

VALuation · Answer

Thanks - all good questions / notes.

1. I would say I'm 50/50. I really want to do PE at the end of the day. However, this is a PE-driven acquisition strategy so I imagine that it will be similar to what you described as a quasi-PE role, but maybe I'm not being realistic. Heavy commercial diligence and modeling to execute the add-ons and a flavor of general corporate strategy. My reservation is what you observed; I don't want to make the wrong move and still not be able to get into PE.

2. I just got promoted to IB associate actually this month.

Disney Disciple · Answer

1. Here's perhaps another way to frame the question - do you want to do investing w/ strategy component or do you want to be able to say "I work in private equity" - because in the end if you are working at a co that is going to go out and acquire 10 businesses in the 3 years and then be sold - that is going to give you likely more execution work than you might get a middle market PE firm (unless they are doing a lot of small deals).

What is it about PE specifically that you want to get into vs. working in effectively acquisitions at a specific company?

2.

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Q&A: Corporate Development and Investing Associate

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Q&A: Corporate Development and Investing Associate

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