Do "no-name" boutiques really open doors to MMs and BBs?
Have an offer at a "no name" boutique, I'd guess around 20 employees.
I have a call lined up with an analyst to ask questions regarding deal flow and size, haven't had time to do my due diligence yet because this sorta came out of nowhere. Let's just assume small.
MD has a BB IB background. He said under the previous MD they were more consulting/advisory focused, now they're trying to do M&A exclusively. Seems like a good team. Pretty technical interview (including a basic modelling test) so I assume I'd get decent modelling experience.
For better or worse, I want to have the experience of working at a BB one day. I've heard numerous people on here claim they were able to make a lateral switch after a few years experience at a micro boutique.
For those who have made the switch, how hard was the hustle? Getting interviews?
For those at MMs/BBs who are involved in the hiring process, how do you view candidates from no name shops? Is there anything in particular you expect them to demonstrate to prove themselves?
bump
I take it you're at a boutique? If so, mind sharing your experience (deal size, flow, comp)? Have you been expected to cold call?
We tend to get referrals from business brokers, relationships with past CEOs, and the rest probably from organizations that cater to small businesses. Basically the comp is what you expect from a regional boutique. Just wanted to bump to see what anyone elses thoughts on how they lateraled because FT recruiting across the board is coming this fall. I would say if you cant get anything else start at a no name and see where you go from there. Its better than having to start over with an MBA or getting snuffed out the game to start somewhere else to then lateral to banking. PM me if you have any other questions, appreciate the post on here!
@Galt93 take that offer asap.
Update: just stalked literally all of their past and present employees on LinkedIn. One got into a MM IB role eventually (via an ER role at another bank first). Another got into a slightly better boutique. Lots of the others either went to Big 4 or into a corporate finance role of some kind. Make of that what you will...
This may be hard to understand coming from this forum, but you have to realize that moving to a BB or moving to better MM is not the end goal for many of the bankers in these small firms. In general the hours are significantly more manageable at these smaller shops and most do not have the appetite or desire to move into a 100+ hour a week role.
That said I'm sure there are a handful of analysts/associates there who do desire to do that and are unable. If you are at a no-name boutique, the best way to position yourself to get noticed by other firms is to 1) come from a top a school, 2) have great deal experience (preferably M&A), and 3) have great performance reviews. If you are lacking in one area then you need to make up for it in another area. Having closed (strongly preferably M&A) deals on your resume is highly transferable to other banks so make sure the bank you are joining has strong deal flow even if it lacks a name brand.
I guess I'm under the impression that most people who apply for these micro shops (myself included) just wanted deal experience anywhere they could get it in the hopes of moving to a name brand and becoming a big swinging dick one day.
I assume you have no other offers, and if you want to work at a BB one day, the best starting step would be to start in IB somewhere. What is the other option here?
I would 100% take the boutique offer. Why pay another year of tuition for just a chance at IB when you have that chance in front of you? Google "Sil lateraling guide", read that, and then PM me in a year if you need help lateraling. Good luck.
I think it's worth noting that the founders / MD's of all of these non-name bucketshops generally all have BB experience which is important depending on what you want to do with your career. You need the BB stamp of approval to do something like this so if you want to bank for a very long time it's better to try and establish yourself on a big platform and cultivate relationships that you can use at an independent later on. People answer the phone when you call from JP Morgan; less so when you're calling from Wanker & Wanker.
Spent 20 years at a BB running a large industry team, 5 at a boutique we founded, then last 10 at a MM, to which we sold our boutique. My experience has been that the BB experience or a large, name boutique, was what the MM was looking for, though there is perhaps more flexibility the lower you go in title. No-name boutiques that specialize in one industry and have some traction there are the best credential. A generalist no name boutique is going to be of limited interest to a MM and none to a BB unless you have a deal sheet that is impressive. If the no-name has the potential to be acquired, it may also be a viable alternative, as generally the junior team is dragged along. Look at the relationships the top people in the boutique have, both to generate business and to sell the business. Good luck. Maybe boutique, then MBA, then path to BB might be easier.
I know what you mean about the desire to have BB on your resume, but stop for a minute and think about what you want. "No-name boutiques" often have a much better work life balance with comparable pay. Further, because many of them are in secondary cities, or let you work from home, you can often save more money. I work for a tiny boutique based in SF and NYC with 5 or so people. I work from home in the middle of nowhere and have gotten the reputation and trust with my MDs that no one really bothers me because they know my work will get done. So if I don't have any calls, I can roll out of bed at 9:30am and no one is the wiser. Another thing to keep in mind is the fee split. At a BB or top-tier MM firm, the group and MD's are lucky if they get 15-20% of the fees. At boutiques the splits go as high as 80% so there is more money around the table for when deals do close. Only you know what you really want, but you have to decide if work/life balance with very good pay is your endgame, or if you want the swagger of saying you work at Goldman, but feel its worth getting shit on for 10 years at 100+ hours a week for a little more money. When I was younger, I definitely wanted the latter, but now I am pretty satisfied with the former.
I went from a BB in NYC to a boutique in a second tier market. The variability of quality in boutiques is high. Some will expect you to cold call and source deals, while others have plenty of high quality deal flow and a high close rate. I was lucky enough to land at a good boutique.
One way that I would assess a boutique for analysts is to look at where their analysts land and also how many get promoted internally. Many of the junior analysts I worked with are still there as associates and VPs (I left 6 years) ago. If people stick around and move up, it signals two things - 1) people don't hate working there so there has to be a reasonable balance between comp and lifestyle, and 2) the senior bankers value training people up and giving them more responsibility. Banks that don't want to invest in their people tend to churn through analysts. Life at a boutique in a smaller market can be really great so many people are happy to stay, particularly for people who value quality of life with really good comp versus trying to become extremely wealthy.
Of the analysts I know who left my former boutique, a couple went to clients/startups (boutique was tech focused), a couple landed at MM PE funds, a couple went to top MBA programs and left finance altogether, 1 lateraled to GS and two others to solid MM shops (Harris Williams, William Blair).