Tips for incoming analyst at a small boutique

First off, congratulations on the offer.

Depending on your relationship with the junior staff, I would reach out ahead of time and ask about their models and see if they have any advice. Structure the question in a way that doesn’t make them think you’re underprepared, but more so genuinely interested in being the best you can be.

Many boutiques have their own way of going about models, often based on the managing directors guidance and preferences. They could be running on templates, fairly intense built from scratch valuation models (LBOs, DCFs), they could keep it as simple as a three statement, or even a revenue model. Again, really depends on the deals and the shop. While unlikely since it’s a boutique, you might not even touch a model for your first 6 months.

Try to look at the deal sizes and the sectors they’re working in as well. A pharma/healthcare model can be drastically more intense than an industrials model. Resources should be online for how to model by each sector.

For a very basic skill set that any incoming analyst should have from day one, I would get quick and comfortable on excel, and PPT. Knowing this can save you significant time that you may lose while learning some of the nuances of modeling.

As far as recruiting for PE out of a boutique, it’s always possible. In fact, your proximity to PE sponsors will be much better while on calls at a boutique, due to lean deal teams. So if you can impress these PE folks, then down the line they might throw you a bone and be willing to have a conversation. Otherwise, do a year at your boutique, hop over to an MM, then go to a PE. Either way the timing of the plan stays the same in the 2-3 year range.

Cheers, and good luck.