More Experience while Pitching vs Deal

Hi everyone,

Joined a BB in London few months ago and was wondering if you don't learn more (or as much) while pitching vs. executing a live transaction. I feel pitching involves modeling, understanding KIH, etc. while execution can be a lot of bullshit process stuff (VDR, Q&A management etc.) I get you don't gain any creds while doing so but is it that bad?

I'm in a high-dealflow team with harsh hours and wondering if I should make the move to a lower-dealflow team with more pitching involved. I'll still have the brand name of my BB but better hours and good modeling/market experience.

4 Comments
 

Based on the most helpful WSO content, here's the breakdown:

Pitching and deal execution both offer unique learning opportunities, but they cater to different skill sets and career goals. Here's how they compare:

Pitching:

  • Learning Opportunities: Pitching often involves creating models, understanding key investment highlights (KIH), and crafting a compelling narrative for potential clients. This can help you develop strong technical skills, market knowledge, and the ability to think strategically.
  • Repetition: You may work on a variety of industries and scenarios, which can broaden your exposure and help you build a solid foundation in financial modeling and market analysis.
  • Downside: Pitches are often speculative and may not lead to actual transactions. Some professionals find this aspect less rewarding since the work might not result in tangible outcomes.

Deal Execution:

  • Learning Opportunities: Execution provides hands-on experience with the transaction process, including managing virtual data rooms (VDRs), Q&A, and coordinating with various stakeholders. This is where you learn the nuances of deal-making and the "why" behind decisions.
  • Credibility: Being part of live deals adds credibility to your resume and helps you build transaction experience, which is highly valued in the industry.
  • Downside: The process can involve repetitive and administrative tasks, which some find less intellectually stimulating.

High-Dealflow vs. Low-Dealflow Teams:

  • High-Dealflow Teams: These teams offer more exposure to live transactions, but the workload can be intense, and you might not have as much time to focus on the technical aspects of deals.
  • Low-Dealflow Teams: These teams may allow for more involvement in pitching and modeling, potentially giving you better hours and a chance to refine your technical skills. However, the lack of live deal experience could be a drawback if you're aiming for roles that value transaction experience.

Key Considerations:

  • If your goal is to develop strong technical skills and market knowledge, a lower-dealflow team with more pitching might be a good fit.
  • If you aim to build a resume with significant transaction experience for roles like private equity or corporate development, staying in a high-dealflow team might be more beneficial despite the harsh hours.

Ultimately, it depends on your long-term career goals and what you value most in your current role. If you're leaning toward a move, consider networking within your firm to understand the dynamics of other teams before making a decision.

Sources: IB duties for Intern - more modeling or pitchbooks?, Q&A: Barclays IB to MM Private Equity, Q&A: HK IBD, This is what a group with poor deal-flow is like, How difficult is it to break in from a low-tier BB?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

It’s a bit of a mix to be honest.

Pitching does give you a good basis (especially as an AN1) for churning decks and getting some modelling experience, especially without any kind of real pressure or crazy time constraints given that you usually have more oversight on the time available and no clients calling you up at 3am going nuts about something in the model.

However, deal experience (on both the buy and sell side) is just very different. For instance, the model on a buy side execution will have a lot more scrutiny on the drivers/assumptions and running sensitivities than a pitch, as you can’t just whack in 2% rev growth or 1% YoY margin growth like you might do for a pitch - because now, these small assumption points actually move the needle for a client. You also get a lot more exposure to client interaction, process management (which is a lot of the work needed for both IB/PE), dealing with the VDR etc, which are just things you don’t have to do when pitching.

In summary, both are necessary and will help build up the skills you need, but ultimately your CV will look better with more transaction experience than just pitching.

 

Analyst 2 in IB-M&A

It’s a bit of a mix to be honest. 

Pitching does give you a good basis (especially as an AN1) for churning decks and getting some modelling experience, especially without any kind of real pressure or crazy time constraints given that you usually have more oversight on the time available and no clients calling you up at 3am going nuts about something in the model.

However, deal experience (on both the buy and sell side) is just very different. For instance, the model on a buy side execution will have a lot more scrutiny on the drivers/assumptions and running sensitivities than a pitch, as you can’t just whack in 2% rev growth or 1% YoY margin growth like you might do for a pitch - because now, these small assumption points actually move the needle for a client. You also get a lot more exposure to client interaction, process management (which is a lot of the work needed for both IB/PE), dealing with the VDR etc, which are just things you don’t have to do when pitching.

In summary, both are necessary and will help build up the skills you need, but ultimately your CV will look better with more transaction experience than just pitching.

No real time pressure when pitching. Lol

 

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