IBD vs Consulting
I’m currently interning in IBD at a top BB (GS, MS, JP) and considering switching to consulting. I previously did a portfolio strategy internship, and I feel like you go much deeper into problems in consulting. In IBD, a lot of the work feels surface-level—IMs are about understanding the business and industry at a high level, but you don’t really get into the details of how the business actually operates.
On the other hand, consulting involves tackling difficult problems and working toward a solution. Of course, there is a lot of PowerPoint and deck-building, but it feels like you’re adding meaning rather than just packaging financials.
Am I thinking about this the right way, or am I missing something? Curious to hear from those who’ve been on both sides—what made you prefer one over the other?
I wouldn’t judge it based on your internship experience. Nowadays they don’t really have interns doing any real work. That being said, you certainly won’t learn about operations in banking the way you would in consulting, but you learn everything about corporate finance, valuation and M&A in a top BB with good deal flow doing a 2 year program. Can’t go wrong either way.
I think you can make the argument that IB focuses on the “important” aspects of the business (at least from the lens of an investor) whereas consultants think about the deep nuances of strategy and aligning this with how they view the market, which as you alluded to is more in-depth analysis, but whether or not this has a tangible impact on the business at the end of the day is questionable.
I think the main thing to consider is how fulfilled you will feel on either side. In IB, just the transaction-based nature of it means that you’re working towards something that will actually occur and you see the direct impact of your work (eg valuation, best deal structure for client, etc). In consulting, yes it is undoubtedly delving into the more strategy side of things with more detail but the end result of your work often can’t be seen - maybe the client won’t actually implement, or your mandate is for a minor project within the company, etc. For me, this contrast in the tangibility of outcomes of my work is the main reason I went with IB as opposed to consulting and I don’t regret it personally.
Agreed with everything here. On the PE side, I've worked with MBBs a couple of times for market work + validation. I'd say we already knew 99% of what they're telling us but it's actually super helpful to have a 100-200 page deck breakdown of every minute detail. It's actually pretty impressive and I'd imagine who ever is putting those together is learning a ton about different markets and how to build a good business. I'd say go with whatever interests you more. Both of them will have similar exit opportunities. If PE is of interest to you, plenty of the recruiting emails I get mention either PE, IB, or management consulting experience (I'd imagine MBB is highly preferred). You can't go wrong with either and you'll likely perform better in a job you enjoy more.
Stop this nonsense, consultants don’t “add meaning” to anything
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