Big 4 to WS - Which firm is most respected - EY vs. KPMG
Hi all, for some time I have realized that the best way for me to break into IB is to start in accounting. Since I am starting in audit, I am wondering which firm is a better starting place: EY or KPMG.
I guess the most important question I have is: Does it matter?
OP continued at end
How to Move from Big 4 to Investment Banking
Breaking into investment banking from accounting can be difficult, but it has been done by several members of the WSO forum. If your end goal is investment banking, then your position and how well you network will probably make more of a difference than which Big 4 you work for. Here are some thoughts from other WSO members.
Focus on Non-Audit Roles
From Certified Investment Banking Professional – Vice President @Bullet-Tooth Tony"
More important than EY vs. KPMG is your ability to move towards a non-audit role (i.e. TAS, Valuation, etc.).
Consider Industry Exposure
From Certified Consulting Professional – Principal @spinergy"
KPMG is buying out Rothstein Kass to up their HF audit client base. If you're going the audit -> banking role the important thing is going to be industry exposure so check which firm has a larger financial services client list.
Take Advantage of Big City Networking
From Certified Investment Banking Professional – 2nd Year Associate @guyfromct"
Being in a big city is an advantage assuming you'll be in one with a large finance community (e.g. NYC, Chicago, SF, Dallas, Houston), however there are several big cities that have a very small finance scene.
Recommended Reading
- I Went B4 to Audit B4 to CF to IB: Ask Me Anything
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- Getting into the Big 4 and What it Means for Ones Future
- Breaking in to IB from Big 4
- How Easy is it to Move from Audit into M&A within Big 4 and then into IB
Want to Break into Investment Banking?
The WSO investment banking interview course is designed by countless professionals with real world experience, tailored to people aspiring to break into the industry. This guide will help you learn how to answer these questions and many, many more.
OP continued
KPMG would be in a major city, and EY would be just outside of a major city but with pretty big/reputable clients, as well. Since KPMG is in a major city, that makes me lean towards them... however, I already know people who started in EY audit and have transitioned into positions at boutique IB firms. In addition, it seems to be the general consensus that KPMG is "the worst big 4," and I don't know how much that would hurt me going forward. As far as company goes, I am leaning EY but it would be more inconvenient since KPMG is in major city.
Thanks for all of your help in advance everyone, try to keep the accountant bashing to a minimum on this post if possible! =)
No. More important than EY vs. KPMG is your ability to move towards a non-audit role (i.e. TAS, Valuation, etc.).
I have heard that part of it, and I will probably try and make that switch when the time comes.. but now I am at a point where I have to pick which firm and want to make the best choice.
Ultimate question: KPMG (from what I know less "prestigious" than EY) and major city VS. EY and non-major city (slightly more inconvenient for my lifestyle but still a city with very good/reputable clients)
Goldman Sachs
Have you tried applying to a F50 rotational program or something like that that isn't Big 4?
I've worked at a couple of Big 4 firms - I think the "KPMG is worst" has always been a load of crap. To answer your question, firm name won't matter, look at the other factors.
KPMG is buying out Rothstein Kass to up their HF audit client base. If you're going the audit -> banking role the important thing is going to be industry exposure so check which firm has a larger financial services client list.
Being in a big city is an advantage assuming you'll be in one with a large finance community (e.g. NYC, Chicago, SF, Dallas, Houston), however there are several big cities that have a very small finance scene.
go KPMG, in the bigger city. You're doing audit and they're heavily involved in the capital markets industry... err but then again ICE, bought NYSE Euronext, is a big EY client, but who knows if you'd get that exposure
Either is fine to be honest, but location with KPMG has the edge
Usually Big 4 have all the same good reputations when it comes to people outside the accounting world. Go with the group you enjoyed the most since you will be working with them a lot.
For what its worth even though KPMG has the reputation of being the bottom of the Big 4 their Advisory practice is very close to the top.
KPMG, for sure. Froggen is probably more qualified to answer, though.
KPMG has a definite edge with respect to location, but I wouldn't worry about reputation too much. KPMG may get ribbed here and there for being the "worst" Big 4 but at the end of the day it's still the Big 4, not the Big 3.5. I would go to KPMG and like mentioned above- their advisory practice is pretty solid.
I'm not nor was I ever a Big 4 guy but as someone in the PE world who has hired a lot of people I never think of one big 4 being superior or inferior to another. And I've hired not only people from those firms, I've hired those firms multiple times. I don't mean that offensively but your job function is more important if you want to get to the IB/PE world. Can't give advice if you want another exit like bschool or internal corp finance at an operating company but for IB pick the best job itself.
Can speak with KPMG in Italy, since I was there. The corporate finance team is regarded as the best one across the other Big 4 in the country. Hence, they have sent people to Nomura (2), HSBC (1), Citi (1), MS (1, from Actuarial Services actually), JPM (1) and people are interviewed for other firms such as Lazard, Rothschild or Leonardo. I have not seen, recently, any guy from E&Y moving to IBD from my country.
Disclaimer: this is very country based.
As stated before, I would go in the firm that would give you the best career path to the TAS/Valuation/corporate finance teams.
Its been 4 years i know but i wished i could have told u this earlier. If u need IB, this B4 thing aint bringing u nowhere. U shd target IB in day1, nt accounting then break in etc, just go IB all the way, its true many left at AM managed to land in IB but at what cost n deliberating hardwork and what for? So much hassle to transfer to TAS, just doing due d, n still not in deals btw. Unless u could transfer to the M&A or the Deal Advisory Or Corp Finance or whatever they call it (diff firms diff names), you’re still not getting deal exposure, which is what IB is looking at. Someis even funnier, “ i been to Australia or US or Singapore or Hong Kong for fee years secondment or fulltime”, Bankers are just gonna ask u, “um yeah u didnt answer my question, so whats your exposure in deals??????.?” Any merger? Nope. Then ok yeah have a nice day.
A freind of mine from india was in ey valuation for 2 years and kpmg cf for 2 year than he went to stern for mba and got in bb(think MS/JPM /GS)as an assiciate
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