After working in IB for 5 years, I took an interview in my first non-finance / banking role. It was for a large F500 company for business development. Throughout the interview as the interviewers are asking me these questions to get a grasp for my skillsets. I realized besides from knowing how to run financial models, put together good looking slides. I haven't really built any skills. Does anyone think differently?
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Unless you have been verticalized into an industry, I can relate buddy
You learn how to deal with a bunch of insecure people
wdym skills - like how to operate a company?
Skills you learn as a senior ASO (or should learn - seems like BBs do not provide good deal experience)
- Manage both internal (top and down, from MD to analyst) and client working team to ensure the process runs smoothly and set correct expectations whilst pushing back when possible
- Be able to run vanilla sellside / buyside M&A process and identify/front load some of the heavy work during both phase 1 and 2 (IM, MP, DD process) with the ability to structure and sketch out the outline of key deliverables (thinking how you can position the company to be attractive, what are the key investor concerns, who are the investors/targets that the client will be interested in, etc)
- Ability to identify key investment highlights of a company (their industry position, key revenue and cost drivers, growth capex plans, etc.) which will be useful on point #2 as well as negotiation phase during DD and drafting transaction docs and setting the valuation floor
- Run a full valuation model whilst conversing with the CFO/finance team and be able to discuss valuation adjustments points if possible (one off adjustments etc to either decrease/increase the price offer price)
At least above is the top bucket ASO/VP expectation in EB with generalist roots. Might differ from group/bank
I feel like this is very aspiration at least in the team’s ive been on. The people actually doing these things are usually senior VPs and Directors
Agree with this entirely. All of our top ASO can do anything you listed above
As others have pointed out, agree there appears to be an EB/BB divide on this. Good 2nd or 3rd associates at my EB can do all of this and are also rapidly becoming industry expects in a sub-vertical or two. I was kinda surprised by the question and responses that indicate some people don’t do this.
Ive seen analyst in my group who is able to do all these...
- People skills is a soft skill, i think it's very important but it's not a tangible skill that you can just showcase during an interview
- Understanding a M&A process just requires you to run a few deals, not transferable outside of banking or M&A related roles
- Identifying key investment highlights, really? You think the slides you put together showing key transaction rationale or investment thesis are the reasons why the deal create IRR for the buyer. If you seriously think the key investment highlight is the reason why investors invest in the deal, then it's delusional. If anything, this falls under you're good at putting slides
- Valuation model falls in my comments about how to run financial models
What other skills have i built for myself?
You certainly know how to complain and alienate yourself from people, idk if you picked that skill up in IB though
Picked it up from your mom
I hate to say it but the way you describe and gloss over these things makes me agree with you. Feels like you really haven't developed or understood the skillset as an associate. If you're limited to running financial models and putting together slides as an ASO2, buddy, "behind the curve" is the understatement of the year.
1. The entire interview is a way to showcase your soft skills, tf? I don't even understand this logic
2. There's understanding the steps in an M&A process, and there's running one. Process beta is a thing, deal tactics are a thing, deal tension is a thing. People who know how to run a tight process know how to create value from doing just that. Crazy right?
3. Key investment highlights are a selling point. They're a hook. It's the elevator pitch to a buyer who doesn't want to read the rest of your shitty teaser. The easy way is formulaic, TAM growth margins boring af blah blah. The harder but more effective way is to be thoughtful and tailor it, which comes from a deeper understanding of industry, business profile etc.
4. Running financial models is easy af. Any idiot can pick that up between YouTube and all the resources available online. Can you drive a value conversation with C-suite? Can you bridge value gaps between buyers / sellers? Can you drive incremental value for your client beyond what your football field shows?
Great list as it was, I actually disagree with the guy who posted it. This should not be top bucket Aso expectations, let alone VP. This should be the standard for an ASO2 and above. I would even argue some of this shit is analyst3 stuff.
You can sit down, write a bullet by bullet rebuttal, why none of what I wrote is a "skillset" or whatever and how it doesn't make sense. Or you can take the time to sit down and introspect over why an analyst2 has a better handle and view into skill development as a banking junior than an ASO2. I've said this many a time, beyond the basic modeling/analysis shit, a lot of the growth and development in banking is self-driven. What you take out of it is hugely dependent on how you approach it.
To say that this is all the job of a 2nd analyst it’s crazy, maybe I’m just dumb. But I don’t even think some VP could run a tight process, given how fast we promo in banking over the years. If you’re at an EB or top MM that does do a lot of volume and process, I’m sure you will be great at your job by associate. To say that you do all of this as 2nd year is unbelievable. Most of the 2nd years at my firm are heading toward PE and barely even working past 10pm.
Agree with you on most points though don't think AN3 can drive the process as smooth as senior ASO (maybe vanilla sellside M&A in a simple industry). Once you add in complexities of it being cross border / multiple shareholders with different incentives / publicly listed / in a niche-ish industry (FIG, renewables, O&G etc.), I think it can quickly dive into hairy M&A transaction
Bro is a party pooper. You should have said “transferable” skills. I agree IB has very little transferable skills to other industries, aside from bizdev. But knowing how to run an M&A process, sketching out CIMs, coming up with key investment highlights/selling points are very much “real” skills.
I think you hit the nail. "Transferable" skills is probably the better term.
It would seem that you haven’t developed any useful skills because perhaps you’re not a very capable individual
As a banker, you should already be able to twist your way to make the mundane stuff you've done into "transferrable skills." But here's some examples:
Put on your banker hat and sell your shit experience as a shiny best-in-class whatever the fuck - that's like the whole point.
Do you think it’s ok over stating your experience? Obviously I’m not going to interview for some shitty job. For example, some of the guys interviewing me are ex MBB consultants with M7 MBA. And they obviously know what I do, what are some concrete things that I can say while being genuine? In my case, I’m interviewing for Manager / Director level business development jobs for a F500 company.
Could you elaborate more on what your BD role's responsibilities are? Sounds like more or less relationship development that is of sales nature where your KPI would be composed of things like # of new clients onboarded / revenue generated from clients etc. If it is the case, then the ability to (i) craft an entailing story around a company's product / services, (ii) provide analytical outputs, (iii) manage internal / external workflows and (iv) have the soft skills to mange counterparties (i.e. managing expectations, negotiating terms with potential clients) are by all means important skillsets to do the job. Obviously going from IB to corporate world requires a transition but that doesn't necessarily mean it's nothing alike. You're only an associate and likely will have a few seniors a the firm to walk you through the process.
I'm not familiar with the corporate latter but getting a director title at F500 at the age of 27 sounds super early
Idk about how you define "skillset" but i think majority of ex-IB/bankers has some of this qualities that users/recruiters would value:
1. Running multiple complex workstreams which might be perceived as good project management, managing people/parties, and ability to quickly shift focus. (Most non-IB people would be absolutely overwhelmed with 2/3 separate work streams but in IB it's a slow month)
2. Critical thinking in terms of business acumen, you might not pick up any critical business acumen skills during your stint (which is awful for you tbh) but exposure to different business process and how they generate revenue could translate to much better business sense (maybe not sector specific sense) than non-bankers
3. Modelling is overrated IMO since most large companies would just hand that over to the big4 people, but the way that you can put an interesting and actionable story out of those models to your board/IC/banks is definitely a great skill to have.
4. Last but not least, while this may not be a skill but knowing the sector/business network and how to leverage those network could be an incredible asset to have. I personally known someone who was hired as a Manager but rose to senior VP in less than 2 years in industry simply he knew who to contact to drive their projects forward or even develop their own projects and deliver it to the board/IC.
Honestly think of yourself as your own CIM, make the interviewer hooked on your story and "value", create a believable yet optimistic story tailor-made to their needs and you basically would get at least to the final interview stage (barring any technical tests beforehand). Figure yourself out and act as your own salesman.
This post reminds me of an episode of Shark Tank. There were two young female founders, some kind of consumer business. One had a typical founder background (she worked in the relevant industry for a while, learned some things, figured out a need where she could start a business). The other was ex IB. Both were natural presenters and the pitch is going well enough.
Then one of the sharks asks them to each explain what skills each of them brings to the table. The first girl says industry knowledge, connections etc. Then it's the former IB girl's turn to answer and she just says "execution." Just that one word. And the sharks laugh them out of the room.
100% agree. I know exactly which episode you’re talking about. I do think banking offers a very unique experience and makes people much more polish than their age. Execution is only useful in banking, and if you can run a tight process then you will be a great associate / VP.
After 5 years in banking, I realized that you need a very unique personality to succeed in banking and become BSD. I worked with a lot of MD throughout my career (15+) and the good MD are truly in it for the long term and they live and breath client relationship / M&A. I realized that I’m never going to be them and I need to build some real skills in an industry so I can be successful in my own ways.
1. Spreading meaningless comps
2. making PowerPoint
if you think working in banking makes you a better investor, you’re either stupid, delusional, or in denial
Just confirming that I've got this right, you see no overlap between banking and investing?
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