Australian accounting to Investment Banking
currently a senior in B4 Transaction services in an australia looking to move into IB.
Just wondering if there are any Aussies here that could share whether this is feasible or whether I would have to transfer into a valuations/modelling team to have a higher chance of success.
any insights appreciated 😀
My sense is that vals wouldn't be any better as it's often valuing derivatives or other less relevant things (but could be that they have different teams within that, im not an expert there). However, it's transaction experience that's important and looked for in any non-grad level role, so I think the key is to gain that
If you're doing well at your current shop, is there any chance to transfer to the M&A/CF team there? I'd think that would be the best stepping stone, but this is all pretty anecdotal so hopefully someone can give you a more confident answer
Market will play a big role too, if this was 2021 it might have been easier but it's a tougher job market in IB now
Really appreciate the reply and am kinda relieved that I wouldn't need to do a stint in vals before trying to lateral over.
How difficult of a switch do you think it'd be? have you seen big 4 backgrounds come in often yourself?
G'day mate! Based on the most helpful WSO content, transitioning from Big 4 Transaction Services to Investment Banking is definitely feasible. There are indeed transferable skills between the two, especially if you're dealing with M&A, Modelling, or Due Diligence.
Having a strong accounting base can be particularly useful, especially when it comes to valuation and modelling components. However, one potential concern could be the specific silo you might be in within a Transaction Services team at a Big 4 firm, as well as the amount of live deal experience you have.
In terms of increasing your chances of success, becoming an expert within a specific product like M&A or Modelling could work to your advantage. But remember, every coin has two sides, it could also be a disadvantage if you're not careful.
So, keep honing your skills, mate! And remember, every step you take is a step closer to your goal. Keep swinging from those branches!
Sources: https://www.wallstreetoasis.com/forum/investment-banking/qa-2nd-yr-ib-analyst-australia?customgpt=1, Accounting major, can't seem to break into IB
I wouldn't say you'd need to transfer from TAS to Vals/M&A tbh - most bankers that I come into contact with don't really know or care about the difference between them, and as much as they say that modelling experience is preferred, deal experience is more relevant in succeeding, as modelling is an easily teachable skill that most banks will re-teach you once you get hired anyway, as each tend to model in their own way, and everything is generally done with templates that are developed internally, so it's more or less inputting and interpreting data. As reductive as it sounds, the most important thing when coming from a Big4 is that you're not in Audit.
As for your prospects of success generally, it depends on the shop you're looking to go to and your experience really. With reference to some of the boutiques, if you've got a solid deal sheet and can make a case for yourself, then yeah sure - it's a fairly well trodden path, and you'll likely have a decent amount of success, albeit almost solely because you'll be mostly competing with others from a similar background as yourself. For some international/balance sheet banks (Nomura, Jefferies, RBC, LevFin/DCM Teams at Big 4 Insto divisions, etc), you might have a similar degree of success as they've been known to take big 4 laterals.
It's a bit harder when it comes to the international BBs and the larger domestics (MacCap and B*), simply due to the sheer number of incoming CVs they get for each role. The majority of the people who are going to be successful in applying to non-SA non-Grad rules are laterals from other IBs of the same calibre, followed by laterals from boutiques, followed by laterals from Insto Banking (albeit this only really applies to LevFin/DCM), with Big4 TAS/CF/M&A a bit further down the ladder. In a good year, or if you're a total standout star performer, you may get a bit lucky here, but in Aus due to the relatively high level of competition compared to the number of roles at each bank, you're going to have a hard time going straight from TAS/CF/M&A to a BB. In any event, if you're successful, you're more likely to get a title downgrade going to a BB than you would going to a boutique, meaning you'd be working harder for less.
All told, my advice isn't really reflective of the current climate. As another commenter touched on, in 2021 you would have had an easier time but at the moment you're going to struggle as a lot of the boutiques aren't hiring at all due to the downturn in activity and other overarching economic conditions, whilst the remainder of the banks are slowing down hiring as belts tighten, and as such will be incredibly selective or only hiring interns and grads for the foreseeable future. Add to that the very public beating that the big4 consultancies have just received and you're going to have a tough time unless you've already got a path in. If you're at PwC I wouldn't even bother - despite the fact that your division likely had nothing to do with the whole tax thing, the entire organisation has been royally fucked reputationally.
The PwC thing definitely does not matter. Seen plenty of people move into very good roles over the last few months despite it.
Oh yeah, I'm shitstirring a little bit on that to be entirely fair. I do think it would matter if you had been in tax though - despite the fact that it makes zero sense to blame juniors for the acts of senior management, unfortunately signalling is a thing and there has been a definite pullback on the use of PwC. Not to say that this will necessarily directly impact employment prospects right now, but given the pullback amidst a broader slowdown in activity, I'd be worried if I were in that position, as your dealsheet won't be getting added to as much as it otherwise would be.
Anecdotally, I've heard a number of financial sponsors domestically are refusing to use PwC, with some even preferring to go in-house, where previously PwC were given a ton of work in the sector.
My associate did that and so did another one at my firm. Both Aussies.
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