Top BB M&A vs. EB RX

Hi all,

Just wanted perspective on M&A vs RX going into the incoming recession.

I go to a target with strong contacts at top BBs (MS M&A) and also strong RX contacts (PJT, HL, Laz). For some EBs, I have to choose between the two groups as the processes are mutually exclusive. I understand that there are distinct differences on the job, and that comes down to a personal decision, but objective I would like to inquire about the exit opportunities?

I see people go from regional coverage groups at BBs go on to top distressed PE/HF, so is it entirely necessary to go the RX route at an EB, where I know I will be crushed in the next few years? How would you guys compare a top BB in a top group (GS/MS/JPM) vs. RX at a top EB if I want to exit to a top PE or HF fund in the future and for BSchool placements?

Thanks in advance.

14 Comments
 

agree with above poster. important notes to consider are culture and compensation, which at a high level (although each EB is different in this regard) favors the EBs, esp. for compensation. As for M&A vs RX, RX kids will get looks from the start PE and HF firms but also distressed shops, while M&A kids mostly don't exit to distressed.

however I think it's valid to consider the macro backdrop, esp because there's a lot of uncertainty regarding the economic future of the virus. RX work is already picking up and the lifestyle changes are showing, whereas at least in the short-term, M&A activity (and corresponding bonuses) will drop. but if you're still 2 years out from actually working this'll be less of an issue

 

Agreed. Even without considering the macro circumstances, I'd value RX at top EB more highly than M&A at top BB.

 

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