London: M&A Product Teams - Perception for exits / analyst experience
Hi all,
Would really appreciate if anyone could share some knowledge on how the M&A product teams at the BBs in London are viewed in terms of exits to PE / other relevant exits.
Are people still given a shot at PE recruiting and will you get the same level of looks from PE coming from an M&A product team versus a sector team? Aware that usually sector teams will hold the pen on models, so I’m guessing a high level of self prep would be required in terms of LBO case studies etc. when it comes to PE if you come from a generalist M&A team that may be more execution heavy?
Appreciate any insights from anyone who has been on one of these teams and has made a move to the buy side or otherwise has some knowledge to share.
Thanks!
Based on the most helpful WSO content, M&A product teams at BBs are generally well-regarded for exits to PE and other relevant opportunities. However, there are some nuances to consider:
PE Recruiting from M&A Product Teams:
Analysts from M&A product teams are still given a shot at PE recruiting. However, sector teams often hold the pen on models, which means analysts from M&A product teams may need to put in extra effort to prepare for LBO case studies and other technical aspects of PE interviews. Self-preparation is key to bridging this gap.
Execution vs. Modeling:
M&A product teams are typically more execution-heavy, focusing on deal processes rather than sector-specific modeling. While this provides strong exposure to deal mechanics, it may limit hands-on modeling experience compared to sector teams. This difference can impact how candidates are perceived during PE recruiting, as modeling skills are often a critical component.
Perception for Exits:
While sector teams might have an edge in terms of modeling experience, M&A product teams still offer strong exit opportunities. The key is how you position your experience during recruiting. Highlighting your deal exposure, understanding of transaction processes, and ability to learn and adapt quickly can help offset any perceived gaps in modeling expertise.
Preparation for PE:
If you're coming from an M&A product team, dedicating time to mastering LBO modeling, understanding industry-specific metrics, and preparing for case studies is essential. Resources like the WSO PE Prep Pack or other modeling courses can be invaluable in leveling the playing field.
In summary, while sector teams may have a slight advantage in terms of modeling experience, M&A product teams still provide solid exit opportunities to PE. Success largely depends on your ability to self-prepare and effectively communicate your skills and experience during the recruiting process.
Sources: Advice for New Analysts Seeking PE Exits, How are JPM PE exits, BAML M&A London - Exit opps? Hours? Reputation?, Exit-Ops: Equity Research vs. Investment Banking - (A Definitive Guide, Part 2)
By M&A product teams, you mean M&A teams like at JPM, MS, GS, etc.? I think it depends on the firm you're at and the reputation of the M&A team. For example, M&A at GS is not regarded as a strong group, especially to be recruiting out of, as the model is owned by the product group. However, I've always gotten the impression that M&A at JPM and MS are legit (and that people get grinded in those groups so lots to learn). I did GS IBD btw.
Thanks for your reply - and yep that’s exactly what I mean.
Does seem like there’s some variance in how much modelling these groups do. I mean in terms of PE I think if you’re going to a generalist PE group you’d probably still be okay provided you self studied modelling to a high level, right? (UK based btw)
A lot of PE recruiting is group reputation-based. My impression of GS M&A (believe it's called M&A group - activism and shareholder advisory) is that it's a fluffy role with lots of exposure to senior bankers (it has a lower analyst-to-MD ratio than coverage groups) and most people transition to coverage groups in order to access compelling exit ops. There's dramatically less modeling here (def less so than M&A teams at other firms).
MS M&A is the most competitive group to get into at MS and I thought the same at JPM (I think healthcare and M&A are the two most competitive?). Those are, from my understanding, the firm equivalents to GS TMT.
That said, my understanding of these "rankings" or "perceptions" is very US-centric. I know the groups at least at GS in London are more consolidated and there's the added component of country groups in EU (not sure how that works in the London market). So tbh, I have no idea how this information translates to UK. Also, no idea if the M&A teams in GS London operates like the M&A team in NYC (or for other firms). I'd recommend updating your subject line and blurb to note that you're asking about UK/London market to get more helpful responses.
It depends on group reputation. I didn’t even know GS had an M&A group. From what I remember MS for example has a proper M&A team
The model will be held by the M&A team at quite a few banks
my take is that the model it’s just one small part of the interview process. Being in a sector team helps A lot with developing commercial acumen which is a significant part of the interviews. You don’t need to do a sell side operating model to pass an interview LBO
(Still me) I for instance have never done an operating model from scratch to finish. Some stuff here and there
I am doing perfectly fine in PE and passed all the interviews. Different story if you’re gonna do infra related PE, then you absolutely need to learn proper heavy modelling
For the rest the logical or operating models is pretty “basic”. You just need to be good around excel and have a bit of brain power
That’s good to hear and quite re-assuring. Yep I was thinking along the same lines that the model is just one part of the process and not to get super bogged down on just that part.
Always great to hear the thought echoed by someone else who has been through it though, thanks!
My personal experience at JP is that the M&A is more of a process team, the modelling gets done in the sector teams. Doesn’t hold the same weight as it does in NYC.
Thanks a lot for your reply - would you agree with the poster above that you would still get PE looks and would be okay if you could talk about your deals + have your modelling in a good place via self study?
Agree JPM in London in particular does seem process heavy from what I’ve heard
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