Lateral Considerations

What considerations would you value when making a decision on whether to lateral or not?

For background, I’m an A2A associate at a BB. I have an offer at a different BB with better deal flow. Both jobs are in the same group/sector. My considerations are below:

Current Job:

  • Good culture

  • I was top bucket last year, however I was disappointed by pay

  • Ok deal flow historically

  • Team’s focus has been in an area that I’m pessimistic on in the medium-term (think renewables)

  • Department has faced significant turmoil recently, with 15+ departures

  • Lean staffings

Lateral Opportunity:

  • Ok culture (kinda sterile)

  • I’ve worked with one senior in the past and have a good relationship with them

  • Better deal flow

  • Team’s focus is a bit broader and not as concentrated (this is attractive to me)

  • Lean staffings, but team is trying to grow the junior ranks

  • Department has historically been volatile, but the team I’d work with is more stable

  • More “prestigious” bank fwiw

2 Comments
 

When deciding whether to lateral, here are the key considerations based on the most helpful WSO content:

  1. Deal Flow and Experience:

    • Better deal flow at the new BB could enhance your resume and skillset, especially if your current team's focus is in an area you're pessimistic about. Deal experience is a critical factor for future opportunities, whether in banking or exits.
  2. Culture and Team Dynamics:

    • While your current job has a good culture, the turmoil and significant departures could signal instability. On the other hand, the lateral opportunity offers a broader focus and a stable team, even if the culture feels "sterile." Consider how much culture impacts your day-to-day satisfaction.
  3. Career Growth and Stability:

    • The new team is trying to grow its junior ranks, which could mean more opportunities for advancement. However, the department's historical volatility is worth noting. Compare this to the turmoil in your current department and assess which environment feels more secure for your long-term goals.
  4. Compensation and Recognition:

    • Disappointment with pay in your current role, despite being top bucket, is a valid concern. If the lateral opportunity offers better compensation or recognition, it could be a strong motivator.
  5. Prestige and Brand:

    • The new BB is more "prestigious," which could carry weight for future career moves. However, prestige alone shouldn't outweigh other factors like culture, deal flow, and personal fit.
  6. Relationships:

    • Having a good relationship with a senior at the new BB is a positive. Strong internal advocates can make a significant difference in your experience and growth at a new firm.
  7. Personal Fit and Long-Term Goals:

    • Reflect on your long-term career aspirations. Does the broader focus and better deal flow at the new BB align more closely with your goals? Or does the comfort and familiarity of your current role outweigh the potential benefits of a move?

Ultimately, weigh these factors based on your priorities. If deal flow, broader focus, and compensation are top priorities, the lateral opportunity might be the better choice. If culture and stability are more important, staying put could make sense.

Sources: RANKING: BEST BULGE BRACKET CULTURE, David and Goliath: The Boutique and The Bulge Bracket, A2A vs Buyside - Should I stay in banking?, PE Lateral Recruiting Advice/Stories/Help?, Canada to NYC Lateral

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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