Why do so many investment bankers go to Corporate Development?
I'm trying to understand why so many investment bankers, from all levels, leave to Corporate Development roles?
I understand there are huge overlaps in M&A transactions and corporate development acquisitions. However I think the modeling skills, financial knowledge, and industry expertise can be equally valuable in FP&A, general corporate finance, operations, etc. The hours are likely comparable in most corporate roles, and oftentimes the pay in Corp Dev is comparable to FP&A. So why are there an overwhelming proportion of ex-IBers going into Corp Dev?
In my experience (in FP&A), I've seen a huge amount of former I-bankers go to FP&A. This is not only at my company, but also across others also. Maybe this is just me, but I thought that FP&A was the biggest exit opp to banking, but this forum absolutely ignores it.
Interesting,.. Have you seen it the other way around? i.e. FP&A people going to banking?
I beg to differ. Investment bankers are far superior at modeling, particularly from a higher viewpoint. Most FP&A people are good at understanding the division or business unit they support, but cannot run accretion/dilution or a returns analysis for an acquisition, particularly once you layer in transaction and capital structure complexities.
I interviewed for a couple Post-MBA FLDP programs and I received offers from both because of my modeling abilities and understanding of value creation. I don't say this to brag as I consider myself an average modeler at best, certainly below the skilled analysts at BB/EBs and top MM brands. But, I was more efficient than my peers that were almost exclusively FP&As or former CPAs (we had to do modeling tests and one was with a group during a final interview day) and I felt I presented the data in a different manner, that was more helpful for decision makers.
At the end of the day, Ibankers choose Corp Dev because the functions are similar and you still get to work on deals while cutting back on hours tremendously. It is a good blend of work content with lifestyle balance.
Thank you for the response. What type of hours do you see in your Corp Dev team?
interested in this as well. Do most bankers now exit into the tech industry in corp dev? how does it compare to PE or other exit opps?
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