Hey y'all. I recently started at an investment bank in their fairness opinions/valuations group, (think the firms listed on BVR here). I've used the search tool on this site and spoken to some of my peers, and I understand that this practice in the firm is different than those in M&A and the rest of IB, but I was curious if the community had any thoughts/experience on exit opps from something such as fairness opinions/valuations?
I'm not trying to break into IBD/HF from here. My unguided thoughts is that perhaps I could do something in strategy at a Fortune 500 company, or in the future even trailblaze a way (and maybe get an MBA) into a CFO type of role. My curiosity on this subject also stems from the fact that I have more of a finance background than others in the space who tend to come from Big 4 and/or have their CPA.
Again, not trying to be unrealistic and expect IBD exit opportunities from my niche position, but would love to hear input on where others ended up from this part of the industry. Thanks!
I’m an associate in a group that does mostly fairness opinions. It is niche for sure but out of my group I have seen LMM PE, EB / MM IBD and Corp Dev. What will be important is speak to how you work in connection with a live deal and are often a gatekeeping item before definitive agreements can be signed. As such, there is a substantial amount of scrutiny on the deliverable and the work product needs to be crisp because you will have the sponsor, board, and lawyers all digging in. Another point to speak to is the granularity of the modeling that’s done - detailed dives on NOLs, net working capital normalization, free cash flow conversion, triangulation of implied exit multiples based on your discount rate and TGR assumptions, etc. You will be very well versed on corporate finance theory and practical knowledge and will be able to analyze a company’s financial health fairly adeptly.
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