How does RX differ from banking and law in terms of responsibilities? NY-based here and have both IB and attorney friends and it seems like their work scope is very similar in bankruptcy.
Curious about their exact differences, and whether it's true that in RX both roles are more interchangeable (i.e., RX lawyers going straight to distressed shops...)
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Based on the most helpful WSO content, here are the key differences and similarities between RX bankers and lawyers in terms of responsibilities:
Differences:
Focus Areas:
Daily Tasks:
Similarities:
Interdisciplinary Nature:
Collaboration:
Interchangeability:
Additional Insights:
For more detailed discussions and personal experiences, you can explore the WSO forums and threads related to RX banking and law.
Sources: Pros & Cons Summary - Post-MBAs in Restructuring (RX) - any regrets?, Rx Law to Rx Banking or Buyside, Pros & Cons Summary - Post-MBAs in Restructuring (RX) - any regrets?, Restructuring technicals and their difficulty, Finance vs. Law
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Not true we’re interchangeable. While lawyers need to understand capital structure and bankers need to understand the law, we are often doing very different things, especially if the debtor ends up declaring Ch 11. Once a case is in court, it looks quite litigation-ey with the lawyers filing motions and other documents—most of which the bankers have nothing to do with.
Of course, there are points at which a lawyer or banker’s creativity and experience can solve a the same problem. I’ve noticed the most collaboration when the parties are devising a solution in a recap or DIP that requires a ton of legal and financial expertise.
The bankers—in my limited experience—do not get in the weeds on the legal issues or operational motions and the lawyers rarely if ever touch a model.
That said, I think the lawyers have a more value-additive, dynamic role in rx compared to any other transactional practice area (if you consider rx transactional) and are required to understand the economics of the situation at a common sense level which may contribute to the perception that we’re interchangeable.
Incredibly well put response. I always see biglaw guys jump to specialist roles at funds (not GC) i.e., 'head of workouts / restructuring' / 'research analyst' at distressed shops that need structuring expertise / credit docs in live deals etc. Is it advisable that senior associates make this jump directly, or possibly do a stint in RX IB to catch up on what missed out on during years of lawyering if the end goal is SS / Distressed investing?
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