Restructuring groups (PJT etc.) VS consulting firms (FTI, Alic, A&M)
Hi everyone
I am interested in restructuring and I was wondering what is the real difference between IB restructuring (debtor or creditor side) VS a position at Alix, FTI or A&M in their creditor / debtor advisory for an analyst. Many thanks :)
Rx banks are focused on capital structure, whereas Rx consulting is focused on turning around operations.
From what I know, it is far better to be in the banking side of things. I know many people in Rx consulting trying to get into Rx banking, but I know nobody in Rx banking going the other way. The work in banking pays better, the hours are roughly equivalent (Rx consulting is pretty brutal), and the experience gained in Rx banking allows for more lucrative options in the future.
Look at M-III Partners on LinkedIn for a laundry list of ppl going from IB to turnarounds. Hours are better in turnarounds too.
Restructuring advisors will focus on capital structure and leading a client through a regimented process in which a sale, bankruptcy or restructuring can occur.
Restructuring consultants tend to focus on strategy and the operational side of the company with special care given to the standard 13-week cash flow models, working capital adjustments, and certain negotiations with suppliers and customers. Much of the work, including cash flow models, are shared with advisors in order to inform more accurate valuation ranges. These consultancies often place emphasis on recruiting professionals with accounting experience.
Based on discussions with peers, A&M's pay seems highly variable (in a good way) based on billable hours whereas Alix and FTI place greater emphasis on higher base. I think standard exits for restructuring consultants include operational roles with sponsors and seasoned distressed investors as well as occasional placement with notable restructuring advisors. As with anything, placement will depend on transaction experience, availability, and networking.
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