Underwriting vs Corp Dev/M&A
Hi everyone,
I currently work as an underwriting analyst in a busy group at a bulge bracket bank. Comp is decent. I have received an offer to join an in house M&A/Corp Dev team at a very large international corp in the consumer goods industry. The base pay is 30k higher than what I currently make, and the bonus range is exceptionally higher. I have not been in my current role for a full year yet, only about 8 months. I never actually applied for this M&A role. I had previously worked in CF at this company 3 years ago and the now CFO who I know had actually messaged me to pool interest in the role. I ended up having a 1:1 meeting with their global head of M&A. I then received an offer. It seems they have pretty heavy deal flow, and there is even a venture capital component that looks incredibly interesting. My end goal in 10 years is to be in PE at a MM firm. What should I do? Bad look to leave in less than a year and go from a BB to a corp that is relatively unknown because their product lines are different names than the actual parent company name and has only about $11bn in annual revenue.
Based on the most helpful WSO content, here’s what you need to consider:
Career Trajectory and PE Goals: If your ultimate goal is to transition into private equity (PE) at a middle-market (MM) firm, staying in underwriting at a bulge bracket (BB) bank might not be the most direct path. PE firms typically value M&A experience over underwriting, as M&A roles provide more relevant deal execution and strategic exposure. The in-house M&A/Corp Dev role could align better with your long-term aspirations, especially if the team has heavy deal flow and a venture capital component, which could diversify your skill set.
Reputation and Exit Opportunities: While the company may not be widely recognized due to its branding structure, the experience you gain in a high-deal-flow M&A/Corp Dev team can still be valuable. Corporate development roles often serve as a stepping stone to PE, particularly if you can highlight your deal experience and strategic contributions. However, transitioning to PE from Corp Dev can be more challenging than from investment banking, so you’ll need to network actively and position yourself well.
Timing and Perception: Leaving your current role after only 8 months might raise some eyebrows, but it’s not necessarily a dealbreaker. The fact that the offer came through a direct connection (the CFO) and not through an application process could mitigate concerns about job-hopping. Be prepared to explain your decision in a way that emphasizes the strategic fit of the new role with your long-term goals.
Compensation and Lifestyle: The higher base pay and bonus potential in the M&A/Corp Dev role are attractive, but also consider the lifestyle differences. Corporate development roles typically offer better work-life balance compared to BB banking, which could be a significant factor depending on your personal priorities.
Venture Capital Component: The venture capital aspect of the role could provide unique exposure and skills that might differentiate you in the future. If this aligns with your interests, it could be a compelling reason to make the switch.
Recommendation:
If your primary goal is to transition into PE, the in-house M&A/Corp Dev role seems like a better fit than underwriting. The heavy deal flow and venture capital exposure could provide valuable experience, and the connection with the CFO suggests strong internal support. However, be mindful of the challenges in moving from Corp Dev to PE and proactively build your network and deal narrative to position yourself for that transition.
Sources: Corporate Strategy vs Corporate Development, Breakdown of Post-IB Exit Opportunities, Guide to Dealing with Competing Offers and Timelines, corporate development regrets?, Broke into Corporate Development, but behind my peers in experience
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