Struggling to select M&A or RX for full-time
In need of some advice. This past summer I had the opportunity to work at a boutique with a generalist process with well-regarded M&A and RX teams. From what I have read across WSO, the RX team is ever so slightly more well-known/regarded than the M&A team. I enjoyed the work in both groups and connected with the people equally. Struggling to make a decision about which team I would like to pursue heavily come group placement full-time. I want the best learning experience and think both groups are equally hour intensive.
For context, I am planning on participating in on-cycle and in the process of figuring out whether I am more interested in traditional buyout vs special situations/distress. Not sure how important this is for the above decision seeing as on cycle will take place before group placement is determined.
Might be putting too much weight on this decision - appreciate the help/advice.
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If you’re interested in buyout then do M&A. You’re going to learn a different skillset in Rx albeit very technical. You’re going to look at businesses in a different way than an M&A banker.
not OP, but would you be looking at businesses through the lens of assets as an RX guy vs cash flow as an M&A guy, or is there a bigger difference im missing?
From an Rx perspective you’ll look at businesses through assets, credits docs and cash flow protection (depending on what advisory role you have)
From M&A you’ll look at business through growth lens.
if you're open to both distressed and buyout but not sure - do Rx as it will keep both doors open. Especially if its a top group, which are the highest per capita feeders into mf buyout
Which EBs would you consider "top"? Is it worthwhile to consider market conditions during analyst years?
PJT, EVR, MOE, HL, LAZ, GUGG, CVP, PWP are all good groups for rx
if you're asking about MF buyout exits then PJT and EVR are materially above the rest
if you're asking about EBs where the Rx group > M&A group for buyout exits:
PJT Rx > M&A
EVR Rx >= M&A
MOE Rx = M&A
LAZ Rx = M&A
HL Rx >>>>>>> M&A
GUGG Rx = M&A
CVP Rx < M&A
PWP Rx >= HC, > rest of M&A
for op i don't really know which of these are generalist or not for analyst programs but certain most of them aren't
From all the info you have given regarding group placement timelines and bank, this sounds like you're going to Lazard NYC. I am not at Lazard, so some specifics may be incorrect, but this is my take on it. RX is the most difficult group to place into at Lazard NYC. It is also the best group in terms of exits, for both buyouts and obviously for distressed. That office however is not a lifestyle group, so just know what you are getting into. If you do focus heavily on RX, make sure you plan for not placing into it. Have heard anecdotally that almost half the class marks RX as their top choice. As for whether to work on RX or M&A, that is a decision you have to make. Personally, I love RX workstreams much more than M&A workstreams and I believe it is a better learning experience.
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Think about how you want to spend your day on a human level. Do you want to deal with struggling companies, stressed clients, and more of a "damage control" role? Or do you want to deal with maximizing value, strategic rationale, synergies, etc? This should not only aid your decision in M&A vs. RX, but also buy-outs vs. distressed investing. This is not an attempt to favor one over the other, just a generalization of what each focuses on and their goals.
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