Does Deal Size Matter?
Hey everyone, currently choosing between a top boutique that focuses on larger but fewer deals (think CVP/PJT) as well as a firm that straddles both MM and BB deals more and also has more volume (think Barclays/Jefferies) for FT. I was wondering if anyone could comment on the pros and cons of working at a place that does larger but fewer deals vs working at a volume shop that tends to do smaller deals. I'm very committed to being a career banker, so I honestly don't care about getting into the weeds about name brand (both offers are for very reputable firms).
Depends what are you goals.
Career banking? I'd take deal flow > deal size at the banks you mentioned.
I'm an analyst looking for best exit opps? Boutiques with less deal flow but larger deal size.
I always recommend starting at the highest end of the market. It is much easier to lateral down than up.
What do you consider highest in the market? EB or BB
Depends on the firm, but of the ones listed I think CVP / PJT are the clear upper echelon firms. Barclays is a solid mid-tier bulge where you would still be working mostly on large-cap deals, but definitely a step behind CVP and PJT. This would be a tougher decision if it was GS/MS/JPM that you were considering.
I wouldn't consider Jefferies at all unless you have some specific reason for going there.
As someone at one of the two boutiques mentioned above (CVP/PJT), don’t mistake a firm’s absolute deal volume for the deal reps and exposure you’ll get as a junior banker. One of the selling points that I think is glossed over in these is the complexity of the transactions you’ll see at one of those boutiques. You’ll get a ton of reps in standard cap markets and sell sides at a BB/MM but the real learning experience — in my own opinion, based on 2 years in banking— comes from the highly negotiated deals / strategic divestitures and acquisitions, etc. you’ll be exposed to at a platform like CVP and PJT.
But out of curiosity, don't large-cap transactions take significantly longer to negotiate and close, and wouldn't that translate into fewer reps and less exposure to the entire deal process at the junior level? I've heard sometimes large-cap transactions can take years to close, while most MM deals are done within months.
It of course depends, but you’re not wrong in general. I’ve been on / seen several multi-billion public deals occur within the usual 6-9 month time frame but have also seen a divestiture take 2 years to close. Even then, if you’re in it for the long(er) term, I don’t think that’s a bad thing. There’s a lot more regulatory risk, etc. in large cap transactions but I don’t know that that translates to less aggregate learning experience. More reps =/= better experience unless they’re quality reps. If you’ve done one broad sellside you’ve done 1,000.
Also, even at CVP/PJT you will have variety in deals - both franchises specialize in large scale transactions but will do smaller “regular-way” deals too. Definitely would not worry about exposure at either.
It's not the size of the dog in the fight, it's the size of the fight in the dog that counts
Go with CVP/PJT and don’t look back
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