Why everyone is wrong about lateraling. Updated thoughts from a 2025 lateral
I'm starting at my new firm soon but have some free time before I need to ramp up. In the months leading up to my move I was religiously reading other posts on WSO about how to lateral, so I figured what better way to give back than to write this post providing updated details on what I and others I know have experienced in the lateral recruiting process and hopefully break down some very common misconceptions about lateraling?
This post won't be going through every little detail on what you should do to maximize your chances at a successful process. I feel like that's already been laid out very well in other posts like [www.wallstreetoasis.comhttps://www.wallstreetoasis.com/forum/job-search/guide-to-lateraling-in…]. I'm instead going to be focusing on why the most common advice might not necessarily apply.
Feel free to drop any questions you may have and I'll do my best to respond!
My Context / Processes
I went to a semi-target and had been on the desk for 1 year when I quit. I was in M&A at a solid MM in NYC but was looking for a stronger learning experience and better exit opps, so I decided to try lateraling to select BB/EBs.
I ended up interviewing with 4 firms (EB1 - specific industry group/geography, EB2 - generalist M&A, EB3 - specific industry group / geography, EB4 - generalist M&A) over the course of 4 months. I got offers at EB1 and EB2, but struck out in near-final rounds at EB3 and turned down the superday at EB4 after accepting at EB1.
The shocking part? I got 2/4 of these opportunities from applying online, 1/4 from a headhunter, and only 1 from "networking" / cold emailing.
My Advice
Network is everything, except when it's not.
I started with the traditional approach of sending tons of networking emails to groups I was interested in, as well as trying to tap any warm connections I had from college / past networking. I reached out to people at almost every BB (except DB), and most of the main EBs (EVR, MOE, LAZ, etc.). I had conversations at almost every firm I reached out to, but either due to my network being weak or the market being bad for laterals, this did not work for me. I got into one of my processes coincidentally when I emailed a director at an EB for a chat, but he looped me into the interview process immediately and we didn't even speak. This brings me into my first point - network is everything, except when it's not. I have no doubt that having strong connections across the industry is super helpful for lateraling, but people too often make it sound like that's the end all be all - No network no interviews - when that simply isn't true. One of my buddies got multiple interviews through networking and that approach worked super well for him. I even think networking is the best way to ensure you get into processes that aren't broadly advertised, but I noticed that, at least at many of the EBs, just applying online or reaching out to someone on the team (even HR!) when you see a job posting can get you into a process and doesn't hurt your chances at actually converting.
If networking isn't everything, what really matters?
Behaviorals and Technicals. I know what you're thinking - no shit, those are the two components of every interview process. And you would be right. The thing is, it doesn't actually matter how many processes you can get into if you aren't fully capable of converting any. As far as specific things to prep, some hard-and-fast rules are: 1. Have a really compelling and clear reason why you want to move, and why you want to move to the group you're interviewing with specifically. If you can, I found that running these specific answers by mentors or friends who could give me an objective judgement on them was super helpful. Even if you have no one to talk to (you should probably worry about that first before thinking about upgrading the bank you work at) ChatGPT can get you like halfway there. 2. Unless you're interviewing for a really niche product group like levfin, know M&A technicals like the back of your hand. I'm taking accretion dilution, pro forma net income, P/E ratio and market cap, how to calculate EPS. That shit came up in every single technical interview I had. 3. If you're interviewing for an industry group, know that industry. You don't need to be as knowledgable as someone who actually works in that industry day in and day out, but know trends, company names, 1-2 important deals, and be able to talk through things like strategic rationale, industry-specific valuation, etc. When you walk through more conceptual questions (e.g. What are some things a company should consider when looking into acquiring a target?), give examples from the industry you're interviewing for! Long story short, prep like hell and do as many mock interviews as possible because even if you only get into 1 process but do super well in the interviews you'll end up in a better place than Network Nancy who got 10 first rounds and 0 offers.
Headhunters aren't just for PE, they're excellent for IB lateral recruiting too.
People think of headhunters and recruiting firms as only important to speak to for PE recruiting purposes, but you'd be surprised how useful they are for lateral recruiting. Especially when it came certain recruiters like SG Partners, it is crucial to engage with these folks if you want a better shot at getting interviews. After all, they exist for a reason. As mentioned above, the offer at EB1 I landed and ultimately decided on was originally from an inbound through a headhunter.
Lateraling isn't the light at the end of the tunnel for everyone.
I've encountered so many people who think the bank they work at is hell and their lives will be so much better after they lateral. I've been guilty of this extreme type of thinking myself, but I think part of a successful lateral process is realizing that the reasons to lateral are more nuanced than people think. Sure, lateraling is nice, but if you're just doing it to have a better name on your resume I'd reconsider. Most likely you will be working longer hours, you will have to socialize with a class of folks who have already been working together for years, and you will have to grind twice as hard to get half the respect because your mistakes will be amplified and the spotlight will be on you, at least for the first 6 mo/1 year. Exits are another common reason, but no bank is going to let you lateral if you tell them you're dead set on leaving in 1-2 years. You will have to at least pretend you care about things like exposure, culture, learning, etc. and these answers will be GRILLED. You aren't a summer analyst anymore who can just spout a few buzzwords and get away with it. You will have to walk through every aspect of your thought process and how you decided this move would be the right one for you.
In Conclusion
Lateraling isn't easy, and it requires a ton of time and focus. Make sure you're well prepared and have conviction that this is the right decision before you commit to the long and arduous process. However, I hope this post was able to provide some guidance and clarity on what it takes to lateral. I also hope this provides some comfort to people like me who may fear their network or cold calling skills aren't strong enough to make a successful move.
Good post. Any chance you could loop in all the headhunters you know (even if they aren't IB focused)?
I think SG Partners is the main headhunter with IB clients but I've also spoken to Dartmouth Partners regarding lateral opportunities. Other big headhunters include CPI, Ratio, Henkel, Dynamics, Amity, Oxbridge, and Carter Pierce, though I think they only work with buyside firms.
great post as well and really appreciate all the advice and tips you gave. wanted to follow up the previous comment and ask how did you went up navigating headhunters to lateral? was it as simple as you emailing them and asking about lateral ib opportunities?
Yeah it's really as simple as letting them know you're open to lateral opportunities. They'll send you an email and you just respond with your updated resume and say you're interested.
thanks! appreciate the confirmation and great to hear about your lateral experience despite what everyone said about the lateral market being dead for juniors. hope you continue to crush it at your new firm!
Also lateraling to an EB - my two cents as I watch the grass grow:
Agree with almost everything of the above. I’m also in a solid MM shop coming from a semi target and was getting no looks applying online for whatever reason. Networking + HH (SG is really top notch for this) helped me out the most. For me, shooting of cold emails to college alumni was how I got all of my interviews.
As far as technicals go would be very interested in comparing notes OP because I did not get many technicals (barring paper LBO and the run of the mill LBO drivers etc etc) and I interviewed for 3 EBs (got 1, rejected from 1, and rejected superday for 1). Found most of my interviews were centered around deal experience and being able to talk about the industry I was pivoting into.
Agree that alumni outreach is great, but I noticed even when I did connect with folks, most happened to be in groups that weren't hiring. Especially in a market like this one, I think it's too luck-based to be sure you'll connect with someone in a group with an opening - which is why I found more success with online applications / HH. Online applications can be a bit of a black box to be fair, but I think I had something like a 20% hit rate (and that's including all the random JPM groups posting on LinkedIn like there's no tomorrow).
To your point on technicals - that's actually interesting because I had a pretty different experience. I had at least 1 interview in each of my processes (usually R2) that was ~30 min of pure technicals. Heavy skew toward accounting / M&A / LBO. I found questions about deal experience varied a lot based on how the deals on my resume aligned with the industry of the groups I was applying to. If there was misalignment (e.g. my deal(s) are in consumer but the group is healthcare-focused), I found they either didn't ask in-depth questions or in some cases flat out didn't ask about my deal experience. Might just be my experience, though.
Agree that industry knowledge is super important. If you're interviewing for an industry group but can't talk through industry trends / how core accounting and valuation concepts apply to the industry, you aren't getting an offer - hard stop.
Is this Moelis
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Great post, very relevant as I've been thinking about this exact topic the past couple weeks. Wanted to ask a couple questions about your journey/timeline:
You mentioned you were on the desk for 1 year but when did you seriously start considering a lateral move?
How long was the interview process? How many rounds and what did they consist of?
Knew pretty early on I wanted to lateral since my goal is mega-cap PE / activist HF, neither of which really recruit from my former bank (e.g. most of the MF associates with my bank on their resume had first lateraled to another bank). I was genuinely having a really good experience - learning a lot, getting good deal exposure, culture was fine - but I knew I wanted more.
Interview processes were generally 1-1.5 months. Processes generally looked like behavioral R1, technical R2, model test, mix of behavioral/technical/fit & culture R4+. Model tests were generally 1-2 hr take-home tests involving a mix of DCF, LBO, EV/EqV, and AVP.
For HHs, do you just go through their website or cold email / cold msg on LinkedIn a point person?
Honestly, all of these are solid ways of getting into contact with them, with email being the most consistent.
How did you prep for the technical portion of the interviews? I feel like while I’m working it’s like 90% ppt and I’ve not gotten any of the financial account/modeling experience relevant to most banking stuff
A really important question. I think if you're getting cranked daily it's honestly really difficult to prep and you might have to sacrifice some weekends/free time. I was somewhat lucky since I worked in an M&A group, but even still I would say most of my prep was self-study, either with the M&A Guides for technicals, Peak Frameworks for LBOs, or going through deal materials and existing models on the drive.
Think my reply got deleted for name dropping the materials I used LOL. Sorry for trying to help a brother out ig. Feel free to pm if you want specific names of resources I used to prep.
I think I was relatively lucky that I was working in M&A and we actually had pretty solid deal flow, so I did get to learn a lot of what went into the model tests on the job. That being said, I would attribute my success during technical interviews to be due to extensive review of the guides and mock interviews/reviewing questions in my free time.
The reality is that banking in general makes us spend so much time on things like powerpoint and non-technical work that you may need to sacrifice some slow days and weekends to prep if you really want to make the move.
I'm also not just saying this to be a hardo. I was often searching up random technical shit (NOL treatment in asset sales, industry-specific KPIs and valuation methods, etc.) at my desk and doing LBOs in my free time. Frankly, a lot of those advanced concepts actually came up in an interview or two, so I see it as a necessary evil if you want to lateral.
Hey! I am not sure how to PM you on here but could you please PM me, id love to know the resources you used. Thanks!
That’s super helpful thanks man, could you DM as I think you’re anon now
Hey man - could you point to resources oyu used? Possibly thinking a similar move but maybe at the 1.5 year mark as I haven't had a solid experience thus far modeling side to talk about...
Hey, could you DM the materials as well. Thank you so much!
Hey could you PM me? Had a few questions about the materials you used
Will be in a similar boat soon, at a group at a top bank but not in M&A/Coverage. Do you know much about how different groups would be perceived in lateral hiring?
And for your pursuit of PE/HF exits, would those come after two years of your new banking gig? IE are you spending 3 total years in banking?
Admittedly not an expert, but I think when it comes to lateral hiring your group matters only insofar as it informs the deal experience on your resume and the story you can tell. Keep in mind the two most important points of consideration for laterals are 1. Can you hit the ground running with minimal training and 2. Do you have a genuine interest in the group you're applying for?
Being in a MM M&A team, I was able to get good deal experience on my resume and build the skills it would take to start right away with minimal input required. I did need to prove why I wanted to move to a specific industry group, but I feel that's easier to justify than something like MM M&A -> BB M&A (not that it can't be done, just seems more challenging to me).
For your specific case, I think that not being in M&A / Coverage may hinder you slightly given that you'll need to prove you've developed the requisite skills, but that's something you can overcome by performing well in technical interviews and model tests. I think you can definitely get looks especially if you're at a top bank already, but it might also be worth considering moving internally as - if you're performing well - you'll have seniors who can potentially vouch for you.
As far as exits, yes, my plan is to recruit for this upcoming on-cycle and stay a full two years at my new firm. I think recruiting solely through off-cycle and only staying for 1 year is fine but doesn't maximize the benefit of being at a better platform. I'd also only suggest that if you made the lateral move to escape from a hellish situation or REALLY don't want to be in banking for an additional year.
Admittedly not an expert, but I think when it comes to lateral hiring your group matters only insofar as it informs the deal experience on your resume and the story you can tell. Keep in mind the two most important points of consideration for laterals are 1. Can you hit the ground running with minimal training and 2. Do you have a genuine interest in the group you're applying for?
Being in a MM M&A team, I was able to get good deal experience on my resume and build the skills it would take to start right away with minimal input required. I did need to prove why I wanted to move to a specific industry group, but I feel that's easier to justify than something like MM M&A -> BB M&A (not that it can't be done, just seems more challenging to me).
For your specific case, I think that not being in M&A / Coverage may hinder you slightly given that you'll need to prove you've developed the requisite skills, but that's something you can overcome by performing well in technical interviews and model tests. I think you can definitely get looks especially if you're at a top bank already, but it might also be worth considering moving internally as - if you're performing well - you'll have seniors who can potentially vouch for you.
As far as exits, yes, my plan is to recruit for this upcoming on-cycle and stay a full two years at my new firm. I think recruiting solely through off-cycle and only staying for 1 year is fine but doesn't maximize the benefit of being at a better platform. I'd also only suggest that if you made the lateral move to escape from a hellish situation or REALLY don't want to be in banking for an additional year.
Thanks for doing this! I was laid off from a MM and currently working at a LMM firm trying to lateral my way up.
I do really well from first round all the way up to superday but can't close the deal. Was there anything you think was important for you to convert those superdays into offers?
Additionally, I come from a niche group (LevFin / DCM) rather than a traditional coverage / M&A team. How did you spin your story for any industry-specific processes?
Sorry to hear about the layoff but glad you're back on your feet and kicking - that spirit will take you a long way!
I don't have specific advice for a superday but I will say at that point it's usually all about fit. The way I approached it was to set up a really strong story and stick to it throughout the process. That way, you don't need to treat the superday as particularly different than any other interview - it's just another conversation.
For your story, as long as you can prove your technical ability and M&A knowledge through technical questions and model tests, it can actually be beneficial to come from a more nontraditional group, especially one that's more technical like LevFin. For example, you can argue you have a better understanding of the entire capital structure and how firms make decisions because of your experience with the credit markets.
There are so many ways to express industry interest and there's no "right answer." You can find specific companies you think are cool and learn a lot about their business. You can find a few recent trends and learn to talk through them / how they impact businesses in that industry. You can even think of a personal experience that connects you to that industry. The best response probably includes more than one (or all) of the above.
Thank you for writing this up! Agree with having strong story, especially tying it to personal interest / experience. For me, I like to structure it as 1) personal interest, 2) emotion based, 3) work experience.
For example, for Sponsors I would say something like 1) interesting to see how sponsors think about transactions / investment thesis, 2) see myself as sales driven so interested in team with more client exposure, 3) generalist experience so get to be well rounded.
If you have some time, it would be extremely helpful to see how you think about / structure your story!
Do you have any thoughts about the best timing to re-recruit after the summer internship?
Network a little toward the end of the internship (weeks 8-10) but I'd suggest starting to really reach out when you already have a return offer in hand - that's the most important leverage you have if you're looking to re-recruit.
Lots of firms will be looking right after the end of the internship so that's definitely the best time to try to get looped into processes. I personally tried recruiting for RX full time - didn't pan out but got into 2 processes that kicked off right after my summer internship ended
Great post - wanted to ask how you were finding emails for the directors/hr people, etc? I've been doing a lot of LinkedIn outreach but haven't tried emailing.
If you know the firm's email format you can usually guess what folks' emails are. LinkedIn outreach is fine, but it has a much lower response rate than email.
Thanks so much - and how pointed were your messages? Do you mind providing an example of how they were structured?
How did you practice modeling and technical questions? I know you mentioned the using the m&a guides but Do you mean the usual guides used during Summer Recruitment?
Think I answered the rest of your question above, but yeah literally the BIWS guides. I found those to (still) be the best and most concise source of knowledge even for lateral recruiting
Did you have to do any DCF/LBO models from scratch, and how was practicing for that? I have mostly pitching experience, so I've been trying to prep for that more
Would Headhunters be helpful for SA to FT lateral recruiting, or only AN1?
Bump. Have heard of this but would like to know if others have insight on how widespread it is
Can I ask what your "Why Lateral" answer was?
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