Buy-side vs Sell-side Advisory: Lateralling
I'm trying to understand if there might be any differences/problems if I start working in a small bank/boutique doing almost exclusively sell-side advisory, and then will try to lateral to a MM/BB which does mostly buy-side. I've been focusing on breaking into IB in general, but since I haven't had much success so far, I'd like to understand if starting on a sell-side will hinder my prospects.
This refers to London, but I guess the dynamics are similar in other markets as well.
Start at a Business Brokerage, although you may be commission it has the best positioning for you to lateral into another bank. Most are sell side but may have miscellaneous services for buyside
The important thing here is to start and to get relevant experience. If you faff about and don't get any role in the industry, that'll be far more damaging to establishing a career at a MM / BB (if that's your priority).
I do want to challenge your premise a bit though. MM / BBs of course do more buyside advisory than a firm which does none, but not "mostly". Sellsides are usually far more prized and sought-after than buyside mandates (and in my view are far more interesting too). They also do other products too like leveraged financing, etc., but again sellside experience is a good thing.
Why are sellsides more prized and sought after ?
A sell side is always a guaranteed fee event, unless no bidders come in or the deal gets pulled. A buyside you really have to bet on the best horse that the bank can get and then it’s not even sure you will win the deal. Hence why you see the top EB/BBs usually lead the sell side. However, upside on a buyside is most often larger if you’re able to cross-sell ECM/DCM/LevFin/Hedge instruments etc.
Great answer by HanaiChicken and I agree with his / her points - much more certainty on a fee event. What I'd add is:
A) Gets you in front of a lot of strategic (and sponsor) clients so acts as a form of marketing to follow up on other topics.
B) Lots of data and business insight
C) Stronger credential (you were trusted with the sellside by such-and-such client - you must be good)
Quia sunt perspiciatis dolorum expedita. Qui rem quibusdam omnis laudantium. Quo vel dolorem sint odit quod quia. Ut dolor praesentium sapiente asperiores et architecto.
Vel debitis illum quo cum consequatur facilis. Occaecati quam fugit incidunt officiis. Nam officiis est recusandae fugiat quia commodi necessitatibus. Sint magnam quo qui delectus cum ab excepturi.
Qui tenetur veniam eveniet voluptas id cum. Pariatur ratione quam recusandae repellendus velit magni debitis. Quos neque modi aut. Voluptatem ut assumenda atque at ut quas.
Sapiente quibusdam libero id. Esse rerum aspernatur qui modi non. Est sint nam laudantium et maiores illum similique.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...