Big 4 to IB feasibility and risks

Do the firms that take Big 4 people only hire from transactions/corporate finance? What happens if you don't even get into Big 4 transactions/corporate finance? With the number of people applying these days you have elite Cambridge and Oxford students getting rejected by IB and applying for Big 4 transactions roles which has made even those Big 4 roles super competitive.

Would going to Big 4 audit be a waste of time? Audit is a shit career in general and if you can't lateral then you're fucked.

What happens if you fail to transfer into IB after Big 4? Everyone and their mother in Big 4 transactions/CF wants to transfer into IB at a Lazard/DC Advisory/MM firms that accept Big 4 ACAs or ACCAs. Most people obviously don't make the switch.

To those who made the switch: How did you make the switch? Did you know anyone who wanted to but failed to do so? Are they extremely bitter at having failed?

It's just scary to invest 3 years at a Big 4 to 'hopefully' try and break into IB and if this doesn't work out then you're royally fucked and stuck in a shitty Big 4 firm.

I'd much rather apply for a range of roles now and if I get into IB then great, otherwise I'll try for FO Asset Management. If I can't get that then I'd probably go for wealth management (scraping the bottom of the barrel I know). If I can't get into that lmfao then I'll just call it a day on my career and ask my parents for early access to my inheritance.

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Based on the most helpful WSO content, here are some insights on transitioning from Big 4 to Investment Banking (IB) and the associated risks:

Feasibility and Risks of Moving from Big 4 to IB

  1. Hiring Preferences:

    • Firms that take Big 4 people often prefer candidates from transactions or corporate finance (CF) roles. This is because these roles provide relevant experience that aligns more closely with IB functions.
  2. Challenges Without Transactions/CF Experience:

    • If you don't get into Big 4 transactions or CF, it becomes significantly harder to transition into IB. The competition is fierce, with elite students from top universities also vying for these roles, making them highly competitive.
  3. Big 4 Audit as a Career Path:

    • Going into Big 4 audit can be seen as a less favorable option if your ultimate goal is to break into IB. Audit roles are generally considered less relevant to IB, and the transition from audit to IB is more challenging. If you fail to lateral into IB, you might find yourself stuck in a career that doesn't align with your aspirations.
  4. Risks of Failing to Transfer:

    • Many individuals in Big 4 transactions/CF aim to move into IB, but not everyone succeeds. If you fail to make the switch, you might end up feeling stuck in a less desirable role within the Big 4. This can lead to frustration and a sense of being "stuck" in a career path you didn't initially aim for.
  5. Experiences of Those Who Made the Switch:

    • Those who successfully transitioned from Big 4 to IB often did so by leveraging their network, gaining relevant experience, and demonstrating a strong understanding of IB functions. Knowing someone who failed to make the switch can be disheartening, and such individuals might feel bitter about their career trajectory.
  6. Alternative Career Paths:

    • If breaking into IB doesn't work out, consider applying for a range of roles such as:
      • Front Office (FO) Asset Management: A viable alternative that still offers exposure to financial markets and investment strategies.
      • Wealth Management: While considered less prestigious, it can still provide a fulfilling career in finance.
      • Other Finance Roles: Exploring other finance-related roles can also be a strategic move if IB and asset management don't pan out.

Conclusion

Investing three years at a Big 4 with the hope of breaking into IB carries significant risks. It's crucial to have a backup plan and be open to alternative career paths in finance. Networking, gaining relevant experience, and staying informed about industry trends can improve your chances of making a successful transition.

Sources: Regrets After Switching From IB to PE?, Was it worth it?, Regrets After Switching From IB to PE?, Big 4 is Paradise, BIG 4 to regional IB? HELP

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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Dude I’ve seen you post like a 100 times now honestly no wonder you can’t break in you sound so entitled. Get a job first and stop jerking off to the thought of working in IB. Yes it is possible to go into IB from audit assuming you have an ACA and have done a year in TAS/Corporate Finance since the work is essentially the same. The risk is that you need to actually transfer internally to the corporate finance team which is easier said then done especially given that they want most juniors staying in audit and they also often bar you from moving to corporate finance until you finish your ACA.

I personally made the move from B4 audit > FO AM > Private Credit all without an undergrad degree so anything is possible if you try hard enough. There’s always a way into the industry if you can’t break in at undergrad do a target masters, if you can’t afford that work in audit for a few years get your ACA and try go via the ACA specific programs. If that doesn’t work go for an MBA and you still have a shot to break in.

It sounds like you just want to do IB because it’s prestigious, and you seem very entitled, my advice for you is to humble yourself because you sound insufferable. FO AM isn’t that easy to break into either at the junior levels, there’s a lot less seats and an equal amount of applicants unless you’re looking at the asset managers that manage mostly internal capital (typically arms of insurance companies), which are a lot easier to break into.

 

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