Importance of deal flow?
How important is deal flow for exit opps.?
Obviously if your group has no deal flow than you're not getting any experience, but is the goal of analyst to work on as many deals as possible or is it quantity over quality. Is the difference in experience gained between normal and hot deal flow marginal? I don't want to be all jealous of my stay till 4am every night friend if it doesn't really matter
DF is VERY important. Obvsiously, ptiching can be valuable, some pitches can get quite technical from my experience and it's good if you can demonstrate a good pitch list. But in the end, on interviews youre gonna be asked what deals your team worked on. If you don't have good deal experience, it will be tricky to convince them how good you are.
Quality over Quantity. There is not a significant difference between preparing your 5th Memorandum and your 10th. When interviewing, I found that interviewers tended to allow me to pick one of my deals and just talk about that one, rather than asking me to talk about all of them. This worked in my favor because I had one deal that I knew extremely well and a few that I wasn't as close to.
That said, if you don't have enough deal flow to have fulfilled your primary deal responsibilities at least twice at the time of interviewing, you'll probably struggle to show well in the interview.
So don't be jealous of the guy spreading comps til 4:00am if you go home at 1:00am doing quality work.
Quality and quantity of course.
does it impress recruiters if you were seeing awesome dealflow? would they actually care if your group had a lot of deaflow b/c that means experience or is being able to talk about a deal in depth enough?
You want to be able to talk about live deals that you were on.
Can you guys also speak to the size of the deals? How do experiences differ between an analyst at a BB staffed on $5B deals vs. those of an analyst at a MM working on $100MM deals?
Deal flow is important because there are many aspects of live deals that you learn in real-time (rather than just hearing about, being on the sidelines for). Additionally, you'll have a better handle on the specifics and can meaningfully speak to them down the road.
I'd say as far as the size, larger deals usually involve more complicated structures (capital or otherwise) and you'd gain more first hand insight into those 'layers'. Your banking team might be juggling more parties, etc. to an acquisition/merger/whatever, and thus, as an analyst, you might get even more responsibility.
Either way, irrelevant of size, live deal experience of any sort is good. I only worked on one or two live deals during my brief analyst stint (all of which died) but being that close to everything gave me good specifics and interesting perspectives to touch upon.
Importance of Deal Flow (Originally Posted: 10/12/2010)
How important is deal experience for PE recruiting assuming the following: (1) You are smart (2) You know how to build M&A, LBO, other kinds of models well (3) You have modeling experience working on bizdev and pitch-type projects (4) You are from a group at GS / MS that is stricken with bad deal flow this year
My office has not originated a deal over the last six months, and I am getting a bit worried about my deal experience. As a result, I was wondering what kind of a factor it would play in PE recruiting for the best funds.
Thanks!
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