Seeing more bankers exit to corp finance / fp&a roles (basically the same to my understanding), can anyone who did this speak on their experience? Was it a difficult transition to move to a accounting heavy role? What's your ultimate goal/what path do you see? Any reasoning not going into corp Dev/Strat?
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Based on the most helpful WSO content, transitioning from Investment Banking (IB) to FP&A or Corporate Finance is not uncommon and can be a strategic move for those looking to gain a broader understanding of a company's operations. Here are some insights:
Transition Experience: Many IB professionals find FP&A roles appealing because they offer a chance to work closely with various departments, focusing on actuals, forecasting, and budgets. This provides a holistic view of the company, which can be valuable for long-term career growth. However, the transition might require adapting to a less deal-driven and more operationally focused environment.
Accounting-Heavy Role: While FP&A roles can involve accounting elements like budgeting and variance analysis, they are not purely accounting-heavy. The role often includes strategic project management and developing metrics for forecasting cost/revenue drivers. For those with an IB background, the analytical and financial modeling skills are highly transferable, making the transition manageable.
Ultimate Goals and Career Path: FP&A can be a stepping stone to senior finance roles such as VP of Finance or CFO. It allows professionals to understand the entire business, which is crucial for leadership positions. Some individuals prefer FP&A over Corporate Development (Corp Dev) or Strategy (Strat) because it provides a more stable and operationally integrated career path, rather than focusing solely on M&A or strategic initiatives.
Reasons for Not Choosing Corp Dev/Strat: While Corp Dev and Strat roles are attractive for their focus on M&A and high-level strategy, they can be highly competitive and may not offer the same breadth of operational exposure as FP&A. Additionally, Corp Dev roles often require waiting for opportunities to arise, as they are typically smaller teams with limited openings.
For more detailed experiences and advice, you can explore threads like https://www.wallstreetoasis.com/forum/corporate/qa-private-equity-portf…</a">Q&A: Private Equity Portfolio Company CFO or https://www.wallstreetoasis.com/forum/investment-banking/accounting-vs-…</a">Accounting vs Finance: Part 1 – Career Paths. These provide insights into how FP&A roles can serve as a foundation for broader career growth.
Sources: Corporate Finance Q&A with accountingbyday, BJM85, STorIB, and djfiii, Accounting vs Finance: Part 1 – Career Paths, Is FP&A corporate finance?, Accounting vs Finance: Part 1 – Career Paths, Finance Career Path & List
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