To what extent do IB analysts "think"
Was workshopping my "Why IB" response. I'm genuinely drawn to sell-side M&A because to my understanding, you're given a company and have to think about how to paint it in the best light possible as you look for a sponsor/ strategic buyer.
To me it seems like you're dealt a set of cards and you have to try and make the best of them. That argumentative aspect seems super appealing to me. Is this true? Do analysts think about this or is it more of a VP/ MD job? Does it even matter what you put in your CIM/ pitch deck? Thanks!
Based on the most helpful WSO content, here's what you need to know:
Analysts' Role in Thinking and Strategy:
VPs and MDs' Role:
Importance of CIM/Pitch Deck Content:
In summary, while analysts do contribute to the thinking process, the strategic and argumentative aspects are more heavily handled by VPs and MDs. The content of the CIM/pitch deck is important, but the way it is presented and the relationships built are key to success in sell-side M&A.
For more detailed discussions, you can refer to the following threads: - https://www.wallstreetoasis.com/forum/investment-banking/how-can-we-do-…</a">How can we do better? - https://www.wallstreetoasis.com/forum/investment-banking/how-can-we-do-…</a">Advice from an ex-IB MD - on how to make VP
Sources: How can we do better?, How can we do better?, Career Bankers: Coverage vs M&A, Why are post-MBA associates so bad?, Advice from an ex-IB MD - on how to make VP
Moderate thinking required.
Example A) Building a deck and target co is undervalued to peers. Why are they undervalued? Is it deserved? Is it actually a strong entry where a buyer can fill in the gaps that they’re missing?
Example B) What to order for dinner that is 1) healthy and 2) exactly $30
Example B is far and away the most important thinking you will do.
In your first year you don’t get to do much thinking tbh, more of a process “do what you’re told” monkey.
In your second year depends how good of an analyst you are. The more you’re able to play up, the more you can think and take a first pass at creating materials with limited guidance (i.e., construct materials based on your vision of what the seniors are guiding towards)
Honestly depends on bank and group. Would imagine AN1 working on a sponsored backed sell side from BofA Industrials (the m&a analyst took all the important work streams) is doing a lot less thinking than the CVP SF analyst working on a biotech sellside for a company that they were doing bizdev work on a retainer over the past few years.
That’s where the difference is between a mid analyst and a top buck analyst. The latter will execute at perfection what is being asked and on top of it actually understand the business of the client inside out, the sector dynamics. Not only executing the markups but also think about how to improve the formatting/flow of the pages
long answer: they don't.
You don’t have to think in M&A or any other IB group outside of Rx
Critical thinking ability is paramount from everything to basic first year tasks to when you start drafting new slides as a tenured second year, anyone who says otherwise is a prospect with no idea what they are speaking about or is leaning in too hard to the "monkey logo rearranger" bit.
If you populate a basic slide with clear instructions you still need to be able to step back at the end and think about if it makes sense standalone and within context of full presentation. If things don't make sense it is likely indicative of an error on your part or you will get credit for flagging something to your team.
Do you think this is group/ bank dependent where advisory firms have analysts do more than BB firms?
Let’s be honest when most people start they have no clue what’s going on or how to even align logos on a slide so they realistically can’t make any sort of sense check.
If you’re a good analyst though in your second year youre definitely expected to sense check if things make sense or even start making recommendations on content / have a first go at things.
Let’s not fool ourselves though we’re not doing rocket science here, at the end of the day at junior levels it’s all about having a well-oiled machine to create content / run analyses that your MDs can leverage (sure, you may need to think about assumptions, what would be useful etc.), and supporting your (often not so professional) clients in something they may have never done before. The real value add come from the relationships that you/your bank has, ability to read the market, ability to market and position a company, and deal negotiation (and for BBs, also from the ability to finance). Most of that is done at the senior level, though you do learn a lot by watching.
we dont
I don’t think. I’m an empty husk, shellshocked with disappointment in life
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