Lev Fin vs M&A for PE

Interested in both M&A and Lev Fin at a bank I have an offer with. For background, Lev Fin definitely has more deal flow but they don't run with the model. M&A doesn't have nearly as much deal flow but the modeling experience would be a huge advantage.

Want to exit to a boutique or MM PE shop outside of NY, would M&A or Lev Fin be better to go with?

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Either or seems fine. Some LevFin groups do more than others and definitely provides a better education regarding the financing considerations in an LBO. Remember in levfin if the group is lending, it’s more of an investor mindset as the group takes on more risk, and thus has skin in the game in some cases.

M&A will help a lot with the legal risks of a deal as well as the technical modeling experience. Some groups I’ve heard are more focused on the accretion/solution analysis and can outsource the operating model and comps to the industry team, but everywhere is a bit different.

 

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