MM IB vs BIG 4 M&A
I would highly appreciate your opinion on these two options:
1- M&A off cycle analyst in a new boutique which was founded by 2 BB managing directors a year ago.
2- M&A analyst in a Big 4.
My goal is to learn as much as possible and end up working in a BB firm.
Thank you very much.
Personally I would go for M&A Analyst at a Big4. Why:
Thank you very much for your reply, it helps a lot
Could you expound upon how working at a Big 4 helps you learn about working in a global business? Currently at Big4 and trying to craft narrative and would appreciate some pointers on how to relate the skillset learned a Big4 to BB (or EB).
Well, for example, I think it helps you get accustomed to the scale of an international company and its formal processes. During transactions you likely need to work with multiple (back-office) departments (risk, legal etc.) or other front-office teams (FDD, valuation etc.), and sometimes even teams from foreign offices. There will also be (strict) procedures you need to follow. Think about client background checks, client engagement restrictions, documentation and archiving requirements etc. It’s all more formal. At a small boutique, there are often no restrictions for client engagement or no ‘set-in stone’ procedures.
I would echo Liquid Gold and say B4 is the move (particularly if it is Deloitte / PwC) but for a completely different reason. While I do agree with all of his points, to piggyback off it, a recession is looming (if you dont think we are already in one), and your probability is much lower of getting laid off. Also, Deloitte laid (and maybe PwC too?) off a fair amount of employees in 2020 as the psuedo-recession hit, and isnt going to do that again. They have been so short staffed that another mass lay off like that would cost them their reputation. I say this because all the VPs / MDs received record high bonuses and their equity more or less doubled in about ~2 years.
One piece of advice for such a role, it is hard to meet people at a massive firm like that, so make an effort to build out your network. Additionally, I found it to be much less collaborative than the other places I've worked, and did not enjoy my time there.
With that said, I got some very good looks relatively. Obviously they are no BB / EB or even strong MM (e.g., Blair / Lincoln etc.), but I still was approached by recruiters for MM / BB and the occasional EB Analyst / Associate roles. From a buy side perspective, I had plenty of recruiters reaching out for small cap corp dev roles and LMM / MM PE funds at the Associate level. So the exit options will be VASTLY better than the no name shop (as LiquidGold already covered).
Best of luck to you, but I would strongly recommend the B4, unless it is EY / KPMG. I guess they have IBDs but I have never heard anything about them. Deloitte is the most competitive, followed by PwC, but remember these firms sit somewhere between LMM regional boutques or a Key Banc and solid MMs like Blair and Lincoln.
Edit: To clarify, D firm layoffs were company wide, and I have no insight as to how they specifically affected the IBD / M&A Consulting groups
I worked for 6 months at a small boutique that was founded in late 2020. Aka no name micro shop, 3 employees including myself. The experience was very valuable and I got a ton of interviews when I started to look elsewhere. I recently accepted an offer at a BB in their M&A product group. Although the size of our deals were small, the work was pure M&A execution which largely follows the same general process regardless of the deal size. I had a lot to talk about in my interviews, and I even was promoted to an AN2 position. My base went from $80k to $125k so I'm pretty happy with how it played out. If the IB shop is doing M&A and working with financial sponsors, it would be a great opportunity and super easy to lateral.
Thank you very much for your reply. It's very enriching to read different opinions and experiences, the more the better to be able to make a final decision.
Not a problem. I think most ppl would agree that getting in the industry of banking is the most important step. You’ll hear recruiters use the phrase “plug and play” meaning they can drop you on a deal team and you’ll know what’s expected of you to some extent. You are much more plug and play with ib experience. What are the comp numbers for each offer?
Is it M&A transaction advisory or M&A Corporate finance at a big 4? If it is the latter than go with that. The former is just glorified accounting and all you do is churn of QoEs, and if it is that I would choose the boutique
Based
Deloitte and PwC also have their own literal Investment Banking divisions now, which means the full sell side process. If it is that, B4 no doubt
M&a at big 4 is sell side advisory. We have MDs from BBs. Top street pay, decent training, lots of experience in the whole process. Would recommend. Our comp is with Solid MM banks
Hi, could you explain what big4 entails? Thanks!
Big4 = the four largest global accounting firms (that also offer consulting, corporate finance services etc.), namely: Deloitte, EY, KPMG and PwC
Thank you!
Big4.
I’m exactly the case you want to follow. Worked in IB at a big 4 and now at a BB.
Did you get an mba or lateral?
Non target MBA > no name one man IB shop for 1.5 years > Big 4 > BB
Big 4 is better than an unknown no name boutique any day
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