Lawyer moving into Banking
V5 M&A Associate (~2 YOE) currently in the associate lateralling process for IBD targeting mainly M&A product and relevant industry groups (think industrials consumer) for deals I've had exposure to in my time as an attorney. Wondering what WSO thinks are the biggest bottlenecks / walls I'll hit in interviews? Am technically proficient (self-taught full 3FS LBO / DCF / merger models) but not at the level of experienced bankers of course.
Based on the most helpful WSO content, here are the key bottlenecks and challenges you might face during your lateral process into Investment Banking (IBD) as an M&A Associate:
1. Perception of Non-Traditional Background
2. Technical Proficiency
3. Deal Experience
4. Understanding the Analyst/Associate Role
5. Cultural Fit
6. Networking and Breaking In
7. Interview Structure
By addressing these bottlenecks and preparing thoroughly, you can position yourself as a strong candidate for lateral M&A roles. Good luck!
Sources: A Non-Target's Perspective - My MM PE Recruiting Process, Lateraling Guide for Investment Banking, Lateraling Guide for Investment Banking, Q&A: Big 4 Consulting to Lower MM IB to MM IB (No MBA)., corporate development regrets?
bump
Stay in law you can make much more as a partner - I’m a director ignore title
Appreciate I've heard this sentiment especially with biglaw economics getting better etc. but ultimately I'm interested more in the numbers / investing + the long-run benefits of finance which you don't get in law (i.e., optionality, commercial thinking, etc). As a director how would you critically assess a biglaw M&A lateral candidate (in terms of what you want to see them overcome / answer well the most in an interview)? Many thanks
if you develop commercial thinking as a lawyer you could become a rainmaker partner (compared to your legal peers which hate managing clients/pitching and are only document drones) vs. coming into finance and realizing your somewhere at best in the middle of the pack compared to guys that on top of investing/commercial/modeling skills may also be strong in python/statistics/specific industries and be "go-to" people in the team
said this, I assume you should have direct access to finance counterparts/investment bankers if you work in M&A (same email chains/recurring calls/etc.), so should be easy to reach out for a coffee and sell your interest for their work/meet as many people from the team that like you enough to hand you an offer (might start at a lower level compared to law, foregoing also some $$)
i made this move like 8 years ago.
My three best friends from law school just made partner at V5 firms. A part of my soul dies when we have brunch and discuss comp. they are paid like NBA players.
be careful about this move unless you're certain you hate being a lawyer and ideally only want to use banking as a stepping stone to investing
Understood and again I've heard these sentiments (cash comp law economics is increasingly and probably only for the better with how top heavy certain whiteshoe law firms are becoming) - banking still leaves optionality on the table that law simply doesn't in my eyes and I can, as you say, use it as a spring board for many things that I can't get with law.
Would you echo the above comments on what the main hurdles will be in my lateralling process that I should be more aware of, or have anything else to add?
Dude. You're like 32 at the youngest. Why are you optimizing for optionality? Also, do you really want to be an ASO1 and be rocking until 3 AM every day again? Good luck trying to adjust your life for the lower compensation and worse hours.
If you're really serious about this, I'd check out DCM/non-modeling LevFin teams. It's the only product that could potentially value your skillset. Any M&A or coverage team will laugh at you.
I actually did an exchange from a foreign country where I earnt my JD a year earlier than others and recruited into my job so im actually 27.5 (about to be 28) so a little far from 32... Why would M&A be out of bounds (have seen many people make this exact lateral just off linkedin at at a similar seniority)? - the point of my post was to ask what people thought the main bottlenecks for me would be looking to lateral and thus how I can best prepare (such as the helpful comments received above). Not sure how your point works in practice given I as an almost 2YOE M&A lawyer would not conceivably add any value to DCM / Levfin (nor have I seen any such jump in recent times)
Because you can be of value re: credit docs. I don't know how you'd be of value to a traditional M&A team. You can't model well, you don't know how a VDR works, you don't know how to work alongside a coverage team, etc.
I am not hating - I am just saying your skillset as a M&A lawyer does not translate to M&A but could to a credit environment.
While the criticisms you make are valid, the statistically (factually) most common lateral from law is to M&A product (very specifically) from V5 M&A lawyers like me. I’ve maybe seen 1 levfin lateral from law last year (And that was in London)? Again, I’m well aware of what I don’t know and need to get better at - I just wanted to know if anybody here had any specific anecdotes of considering law laterals like me.
I shared some of my views above, but I'll reiterate that I'd be very careful with this move. I broadly side with Director and Associate here.
I'm almost certain you risk getting trapped at some shitty bank (this market is very average, it's not 2022) doing mindless work with mediocre exits.
My bigger concern is that you seem to idealize investing and "commercial" work a bit too much. I seriously doubt that distinction will matter as much when you're 35-40. At that point, most people just want good comp, decent WLB and to make it to their kid's soccer game. Literally nobody in PE gives as many fucks as you probably imagine, and carry is nowhere near as huge as people make it sound.
You also seem to romanticize the actual investing part. Given how saturated and institutionalized PE has become, don't expect to be pulling off the next Blackstone-Hilton or some genius trade after 10+ years in the industry. It's a mature business. Most of the obvious playbook has already been professionalized to death.
I think a much better path would be restructuring or lending at a strong law firm, and then potentially lateral directly into a VP role at a bank or on the buyside (if lucky). This seems better than resetting your career to 0 and sitting next to guys 7 years younger than you updating some useless comps.
After all, if you were so motivated about "commercial" and "investing" work, a much better playbook would be to get the big bucks in law, and then go solo being the actual principal taking the commercial and investing decisions, instead of updating the decks for some senior.Read about Reginald Lewis in the 80. He left Paul Weiss and went off to do LBOs himself.
how much money are they making?
Hi, Undergrad currently going through IBD recruitment.
I am also considering law, feel like your background is unique in that you have exposure in both law and banking.
Can you share some trade offs to consider when choosing which career path is better, like what characteristics would be good for law vs banking
Biggest wall won't be the models, it'll be proving you think like a deal person instead of an advisor. Expect them to take a deal you papered and ask commercial questions - why the buyer paid that multiple, where the negotiation actually turned, what you'd have pushed on structure-wise. Lawyers usually know the mechanics cold and blank on that stuff. And have a tight answer for why you're leaving law, because everyone assumes you'll boomerang back inside 18 months.
Appreciate the thoughts. I hadn't actually thought from this perspective so I'll be sure to read through my deal sheet and prep well on the "deal logic" behind each. On the back to law point, I am curious whether you say that based off anecdote / personal experience? I'm surprised because I'd imagine a lawyer who successfully hit a good IBD lateral (unless extremely technically incompetent / can't hack it) would be gleaming to stay there and definitely not go back into law? At least that's my own perspective
Lawyers make the worst fucking bankers lol. Never seen one truly pan out
Inspired by your success story here! Do you mind if I DM you just for a short few questions on how you found the transition itself, post-transition thoughts, etc? Won't be much of your time.
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