Value of deal experience on smaller M&A transactions ($50m - $100m EV)

When it comes to deal experience on smaller M&A transactions ($50m - $100m EV) at a boutique IB shop, here's what you need to know:

1. Value of Smaller Deal Experience:

   • Smaller deal experience can be valuable, especially if you have end-to-end responsibilities like modeling, creating IMs, comps, buyer lists, and managing DD/VDR. This hands-on exposure is often more comprehensive than what analysts at larger banks might get, where roles can be more segmented.
   • Completing 3-4 deals per year over 2-3 years demonstrates strong execution skills and deal flow, which can be appealing to MM PE or larger MM/BB IB recruiters.

2. Transition to Larger Markets or Firms:

   • Moving to a larger MM/BB IB or MM PE is possible, but the transition depends on how well you can articulate your experience and its relevance. Highlighting your technical skills, deal volume, and ability to manage multiple processes will be key.
   • For non-US, non-EU regions, smaller deals may carry more weight due to market dynamics, but transitioning to a larger market like London will likely require networking and demonstrating how your experience translates to larger, more complex transactions.

3. Competing with Larger Deal Experience:

   • While volume is valuable, larger deals ($1b+) at BBs or EBs often carry more prestige due to the complexity and brand recognition. However, the skills you gain from smaller deals—like managing processes end-to-end—can sometimes outweigh the prestige factor, especially for MM PE or smaller MM IB roles.
   • For BB/EB roles, the prestige and complexity of larger deals might still give those candidates an edge, but your broader responsibilities and deal volume can make you competitive for certain positions.

4. Key Differentiators:

   • The ability to demonstrate strong technical skills, leadership in deal processes, and adaptability to different deal sizes will be critical.
   • Networking and storytelling will play a significant role in bridging the gap between your boutique experience and the expectations of larger firms.

In summary, while smaller deal experience may not carry the same prestige as larger transactions, the hands-on exposure and volume can still be highly valuable, particularly for MM PE or MM IB roles. Transitioning to BB/EB or larger markets like London is possible but will require strategic positioning of your experience.

Sources: If smaller banks say they offer juniors more deal exposure, why are bulge bracket positions still more highly regarded?, Why do MM IB shops get trashed on so much?, Q&A: Non Targ -> BB Coverage Group -> Incoming MM PE, "Walk me through a recent deal" sample, newsletter alert, Is CRE Debt Experience Pretty Enough for PE?