Opinon on Types of Transaction Experiences
I guess the question is simple enough, what types of transactions do people consider the best experience for lateralling? (Assuming the focus is on coverage and M&A groups, would it just be M&A deals)
I'm at an a small shop in NYC, the only experience I can list on my resume is a minority equity investment transaction where we advised a private equity group. While I got good modeling experience from the deal, it's not a full M&A deal, and I'm worried about how it'll be perceived while lateral recruiting. I want to eventually end up in an industrial, tech, or M&A group.
I got hoed hard in 2022 when everyone lost their return offers at my firm, I got sent straight to the lmm boonies.
Based on the most helpful WSO content, when it comes to lateraling, especially if you're aiming for coverage and M&A groups, M&A deals are often considered the gold standard of transaction experience. However, don't discount the value of the minority equity investment transaction you advised on. Here's why:
Diversity of Experience: While M&A deals are highly valued, having a variety of transaction types can demonstrate a breadth of knowledge and adaptability. Your experience with a minority equity investment can showcase your ability to understand different aspects of finance and investment.
Modeling Skills: You mentioned you gained good modeling experience from the deal. This is crucial. Strong financial modeling skills are highly transferable and are a core component of the technical expertise required in investment banking.
Narrative: It's all about how you frame your experience. If you can articulate the complexities of the transaction, your role, and how the skills you developed are relevant to an industrial, tech, or M&A group, you can make a compelling case for yourself.
Market Conditions: Acknowledge the market conditions that led you to your current role. The fact that you navigated a tough job market and still secured valuable experience speaks to your resilience and commitment to your career.
Networking: Continue to leverage networking. As you've seen in the WSO guides, networking is a critical component of the lateral recruiting process. Use your current experience as a talking point to engage with professionals in your desired sectors.
Future Focus: Emphasize your eagerness to learn and take on M&A transactions. Show that you're proactive in seeking opportunities to broaden your experience in line with your career goals.
Remember, it's not just the deals you've worked on but also how you've worked on them. Your analytical skills, work ethic, and ability to contribute to a team are just as important. Keep swinging through the vines of networking and skill-building, and you'll find your way to the group you're aiming for. Keep your spirits high, and don't let the lmm boonies get you down. Every experience is a stepping stone to your next big break!
Sources: Lateraling Guide for Investment Banking, Best Practices for Finding Lateral Opportunities, Banking vs. The Buy-side: 10.5 considerations, https://www.wallstreetoasis.com/forum/private-equity/then-and-now-compbanker?customgpt=1, Guide to Lateraling in 2021
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