Losing streak in bake-offs
Everybody hates bake-offs because endless edits on pitchbooks is just nonsensical.
Have been with my current bank/group for ~1.5 years, I saw my group losing countless bake-offs. We definitely have the connection (a close one or a remote friend introduction I don't know), otherwise we wouldn't even be there in the bake-off line-up.
However, what frustrates me is, we don't win mandates that much. Constantly getting crushed by bigger names such as GS/MS.
Why do we keep losing mandates?
1. Is it because the connection is not strong enough ?
2. Is it because the bank's brand name is not on par with BB/EB ?
3. Is it because my MD is not capable enough ?
His pitching style is "get me a pitchbook ready so we have something to give to our clients, but I won't rely on that pitchbook to pitch the client". I've been with him in onsite meetings and he barely looks at the slide deck.
4. Is it because my VP is not capable enough ?
VP is a kid who got deep connections. I believe VP is connected to high-ups in my bank. Clearly ignorant and incapable when it comes to deal execution and technicals. Is not capable of giving much insights when we prepare decks.
5. Is it because I/we/Analysts are incapable ?
I've definitely given this some thought. My counterpoint here is in one bake-off, the part I was responsible for was the best part for that pitch (client said that point of view was exactly what they were thinking). Half of my fellow analysts are capable and half are not. The Associate is okay.
6. A combination of bad luck + brand name + incapable seniors to source deals ?
As the line goes, nobody gets fired for hiring goldman. Get a bunch of pitch books and hear all the flowery positioning, valuation that ultimately is determined by buyers not the banker and all that's left is picking who executes. No risk for the company to pick the best brand, combine all the best ideas from the bake-offs, and assume a top bank can do a fine job.
If you're not top name in the field it's expected that you won't always win mandates. Depends on how smart with resource your senior is, my previous firm have D/MDs that have realistic expectation and we won't go all out on pitches we probably wouldn't win, and sometimes we would start probing for possible contacts in PE/etc. to position for the buyside.
But if you have stupid senior bankers who just grill the juniors on mandates they have no chance to win, then too bad. Oftentimes my seniors would have good intel on who else is on the process to gauge our win chance.
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