Should lateraling require starting again as an Analyst 1?

Based on the most helpful WSO content, lateraling as an Analyst 2 to another firm and being asked to start over as an Analyst 1 is not uncommon, but it largely depends on the firm and the circumstances. Some firms may require you to start as an Analyst 1 to ensure you align with their training, culture, and expectations, especially if they feel your prior experience doesn't fully translate to their standards or if they want to evaluate your performance before advancing you.

However, there are cases where laterals are allowed to maintain their current level or even receive early promotions if they prove themselves quickly. For example, some groups may start you as an Analyst 1 but offer the possibility of an early promotion to Analyst 2 within a few months if you demonstrate strong performance. This approach is often used to mitigate risks for the hiring firm while giving you a chance to progress.

If you're considering the move, it’s worth negotiating and clarifying the timeline for potential promotions or level adjustments. Additionally, ensure you understand the firm's expectations and how they view your prior experience.

Sources: It’s Time to Leave My Firm (A1)... How Do I Lateral?, https://www.wallstreetoasis.com/forum/private-equity/just-broke-into-ib-as-a-lateral-how-do-plan-my-move-to-pe?customgpt=1, Key Interview Takeaways - 2nd Year Analyst Perspective, Some Observations from an MD, Lateralling Job Market