Which position would you take?
Background: I'm pretty much fresh out of undergrad. I would like to get a few years of banking down and then go off to middle market PE (as my plan A) and Asset Management (as my plan B). I'm fortunate enough to have two offers to choose from.
Bank #1: A reasonably well known bank with good deal flow and a position as an analyst, working primarily in the metals and mining group.
Bank #2: A much smaller (and relatively unknown) bank that deals exclusively in M&A advisory and works with companies in a very wide variety of industries, but no resource companies.
I don't know too much about what kind of things PE companies look at but at first glance it seems that bank #2 is the way to go? I would get exposure to a number of industries and some great M&A modelling experience which would be huge, right? Just difficult to turn down an offer from the other bank which is known by every banker on the street...
Are there any other factors I should consider?
1+2=3
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you will get good experience at the known bank as well. Therefore, take the known bank!
I think the metal and minings group is a great group to be in with a known bank. But some boutiques are pretty strong as well. But I would go with the metal and minings group with what details you've given us.
What size deals does the second bank work on and do they have strong deal flow? You don't want to be at a M&A shop pitching all day. If they work with very small companies, you may not get much experience in terms of complex modeling. What are the backgrounds like of the guys at the M&A shop? If they are a bunch of ex-BB guys I'm sure they will bring on some pretty solid deals. I would say probably go with bank number one unless the second bank has strong deal flow, experienced bankers and works on solid deals.
^+1 SHORTmyCDO. Really depends on what type of deals you'll be exposed to at shop #2 and the background of the partners. Do you know where other analysts went?
If shop #2 is unknown I would almost definitely choose option 1. The name thing is important in this industry. And analyst experience is fairly generic.
Thanks to everyone for the advice. Unfortunately, all the feedback has only made my decision more difficult lol.
On the one hand, I don't want to pigeon-hole myself as a metals and mining guy, especially considering I don't have the engineering background that most mining guys have. And in terms of exit opportunities, it might be more difficult to get into a PE shop because I'll only have experience in that one sector.
On the other hand the mining group is a pretty strong one with great deal flow and large deal size and it's a good brand to have behind me.
I'm meeting with both companies again. I'm gonna try to figure out from the M&A shop, what kind of dealflow and transaction size they deal with. From the mining bank, I'm going to ask details about what kind of M&A activity they get and I'll go from there.
Thanks to everyone and still accepting more suggestions/opinions.
You will not be as pigeonholed as you think with metals and mining.
Go with 1 obviously. Brand name is more important.
GS anything even in FIG is way better than boutique M&A.
Most recruiters don't even look at my boutique so i have to reach out. Brand name is the most important.
Can't make that point strongly enough. The boutique, if not known, will leave you out in the cold much more than having only met/min experience. Seriously.... take it from an industry guy....
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