Bad Experience Working with Goldman
Like most of the young kids on this website, I used to think GS was the best bank on the Street, the absolute pinnacle of finance. Sure, any BB was good, but GS is really where you wanted to be. And not much has changed that perception for graduates today.
However, as someone who has worked on the corporate side for quite a while, I keep having bad experiences with GS throughout my career. I don't deal with them all the time, but when I do, it just hasn't been a great experience. I wanted to see if I'm running into the wrong teams or if others have seen the same thing. Here are a couple of examples:
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M&A - Early on worked on a buy side where GS was representing the seller. Terrible CIM. Badly done. Material errors in the numbers. Response time and knowledge of the team was substandard throughout the process.
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Research - GS analyst downgrades our stock from a Buy to Hold. Writes a scathing note. Our stock drops 4% that day. The GS model has a very serious error. After fixing the error, the entire conclusion would be changed. GS quietly puts out a correction to the model days later and does not fix the rating. (Our stock does not jump back up 4%....damage done)
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Don't want to go into too much detail here but used Goldman for a transaction. They tried to charge us about 10x of the going rate for the transaction. Maybe, they thought we were dumb or something. They tried to make up some lame excuse when we pointed out that other BBs were charging much less.
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Back office - Difficult time getting documents. Have to constantly ask for updates. Slow response time.
Anyone else have the same experience? I know...I know it's GS right. It's supposed to be the best bank on the planet with the best people but I'm honestly getting to point where I would avoid working with them.
Anyone else experience the same thing???
They are humans like you and I, not some mythical creatures.
Of course, agree. And we all make mistakes, but what I'm saying is that as a client in my experience, the service is noticeable worse than other major banks.
Even BB aside, I've worked with MM banks that consistently do a much better job and have never done any of the things listed above.
Yes and thats why EB exists and is thriving. GS kinda big dicks their clients its like Disney or Microsoft who have even bigger dicks
If you don’t mind which GS was this? Or were there many offices?
Depends on who covers you. I have good coverage but have also been handed off for special situations and it’s a mixed bag. Their back office, for me at least, is generally one of the best.
Personal anecdote but my dad always complained about working with them from the corporate side (so using them for commercial banking stuff, executing trades, etc.) and said their teams were generally terrible. The guys he works with ultimately use regional banks because higher level of customer service and more attention to detail because they need to keep you as a client, while bigger banks don’t care as much.
I agree with this to extent as I believe it can be part of the issue. However, I've had great service from other major banks. It's really just Goldman that sticks out.
I wonder if it has something to do with them trying to always hire the best and the reputation. If you have a band where everyone wants to be the singer, it's gonna sound like crap. Maybe, you need to hire people who are ok being the bassist, drummer, and rhythm guitarist and play well as a team. Just a theory on what might be happening.
On #2 just buy more thats free alpha
Question for OP (actually anyone can chime in): what banks you have worked with gave you the best experience?
Goldman offers pedigree, in that their name sometimes convinces boards of directors of doing certain deals.
Beyond that, I agree, I don’t think they offer the best experience. The vampire squid nickname is surprisingly accurate.
Exactly and that's why his company still gave a mandate to GS even when the research analyst made a material mistake that hurt the stock, in addition to poor communication and presentation from the IB team.
Co-advised on a sell side with their TMT team. We received zero offers. You would think the immortal GS TMT would be wise as to minimize resources on a shitty deal, but they joined every call with 6-8 people.
They just coast by on reputation and size at this point. GS and the Lannisters are one in the same; we know how that works out.
Are you accusing GS of incest?!
Does Goldman get the best talent? They don't seem to at my school
GS today is IBM in the 80s. You won't get fired for hiring GS to run your process. But you can definitely get not just more bang for your buck, but more bang overall, going with someone else in a lot of cases. Maybe an EB, or maybe it's a lower-tier BB that has really good guys in the specific space you're in, or maybe it's Wells Fargo if you know what you'll get, from whom, for what you have, and WF can help out with the financing on some really favorable terms.
Funny that you mention Wells as I've gotten really good service from them (and probably not the first bank on most grad's list). Honestly, all BBs have been fine and can't complain much about even MM banks. That's what is so strange about GS. They really stick out. Most banks do a solid job.
GS isn’t as hungry anymore - I think MS is better.
How big is your company? Have been on the other side of many a global bank and have found unless it meets a size /fee threshold, file is usually pawned off to an Asso 3 or junior VP with obvious results.
If I'm your management team, unless GS brings a lot of liquidity to the stock, I go to town on this research analyst. No access, shitty deal positions, the whole 9 yards.
Big enough that the other BBs care. So it's not a size issue.
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