Big 4 vs IB Dilemma
Need some help navigating this dilemma - let me know what you all think.
I (second year in college) have recently been offered a internship at a Big 4 during my junior year spring semester. However, IB is still my number 1 and I am hoping to still land an IB internship my summer entering my senior year.
The dilemma here is that if I decide to go the Big 4 route, I will likely need to spend the following summer (the summer I would’ve otherwise been doing an IB internship) getting more credits to meet the minimum CPA requirements, so IB would essentially be off the table.
However, I can shoot for IB, but as we all know an internship, and then a return offer, are nothing guaranteed. And as someone who goes to a non-target, my chances decrease significantly (should note that my school ranks in the top 10 public business schools, and every year 5-10 people get IB offers at local middle-market banks)
That said, if I shoot for IB then Big 4 would be off the table as I likely would not meet the 150 credits needed at graduation.
How do you all think I should navigate this?
First a couple questions, are you going into Big 4 Audit or another advisory service like FDD? Are you aiming for a local MM bank internship or are you attempting BB/EB?
This can be a loaded question as it all depends on what you really want from your career or life in general. The first thing most people will jump on is that "audit is so boring and lame" which to be quite honest, none of the stuff most analyst/ entry level people are doing is really that interesting. If you are amongst a banking crowd, many will poo poo the Big 4 but its actually a great place to start a career. The benefit starting at Big 4 would give you, is that you would have a big name that can help you get into a top MBA if you want to switch to banking later. It also gives you a great work life balance compared to banking. If you were to stay in Big 4 long term, you can still make great money as most Big 4 partners end up making over 1M a year for quite some time. I know a partner that is 16 years into his career that made 1.7M last year. He certainly works, but not nearly as much as the vast majority of BB and EB MD's. Audit clients pretty much stick around for the most part, you aren't fighting for new business as much.
However, the banking career has much more upside for those willing to push through. Although most MD's in BB and EB are making 1-2m a year, you still have the opportunity to make 3M+ without having to lead a division. Banking as you go further into the career also tends to have more interesting complex work that would keep you on the edge of your seat a lot more than audit. With that work comes a lot more stress too generally but its a trade off, a lot of people live off the rush.
I would personally suggest not to start off your career at a smaller MM unless they have some sort of claim to fame and a VERY reputable name. Most of my buddies that started in MM banks had a lot of trouble switching to other banks if they got laid off or wanted to go up the food chain. They also had more trouble getting into top MBA programs than the Big 4 guys. MM can still be great though and you can still pull in good money.
I’ll push back on the idea of a good work life balance at Big 4–this hasn’t been the case for like twenty years now. You’ll routinely find yourself working upwards of 60 hours during busy season for half the pay of IB. It’s more secure than IB though and enough to be financially comfortable while having the upside for high earnings down the road
I definitely agree with you, it is typical to work between 60-70 hours a week during busy season for 3- 4 months of the year with far less pay.
I think the MBA part is a bit misguided. Sure a name brand is better, but IB in any size is great experience. I would not weigh bschool chances on what career path to decide, because there is a lot of other factors (one being the push for diversity and not having a class full of BB/PE Associates).
What about HL/blair/baird?
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