Hypothetical Questions
Say, you are involved in a deal as a sell-side advisor. I understand all phases of transaction are important, but as analysts, which phase(s) of the deals do you learn the most by being involved in: Winning a mandate, picking a preferred bidder, due diligence session, closing a deal....?
Also, once analysts are involved in a certain deal, are they expected to be involved to the finish, or is it common for them to drop out of the deal team in the middle and leave, whether it's cause they are needed in other more high priority deals, or they leave the firm to join buy-side?
Hypothetical questions, I know, but curious to hear from experienced monkeys out there.
Thanks.
Based on my limited buyside experience (3 years) the banking group that is assigned to the deal from the beginning is generally the same team that is involved until the end. By the time you are done with the deal 2-6 months you will have established a pretty significant repotoire which makes networking and exit opps that much easier.
As an analyst I would imagine that the most educational parts are putting together the OM, which you have to read and edit a million times along with the very granular stages of the due diligence process when there are only a few groups left competing for the deal.
The most learning occurs at the pitch and OM stage. The pitch stage has a ton of learning as you just don't know a bloody thing about the company or the industry (or maybe you do, but that doesn't count). The pitch stage is your initial look into the industry and really gives you a broad view, but hardly a deep dive. The OM (Offering Memorandum) is a far deeper dive and far more educational. Now you're not just reading about the industry and the company, but actually doing the leg work yourself. Speaking with senior management and asking them questions about the business (diligence) is by far the most educational part regarding the company's operations. Reading research reports and actually sitting down and writing about the industry, that's where you really learn what the drivers are and what makes the whole thing work.
For me, my favorite part of my job is learning about new industries and companies. That said, the OM and the Pitch are my two least-favorite parts of the deal (mostly cause I never get to go home early!)
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