Hi,
I have been attempting to network into an IB M&A position for the past 2 years in the regional markets. I come from a non-target, nontraditional background of healthcare. I am currently a director at a decent sized healthcare clinic in a rural market where we do about $10m in collections and we are going to continue to grow with additional physicians joining the practice in the near future.
I was recently able to get M&A experience because we acquired a healthcare practice in the same field. It was a pretty straightforward asset purchase and real estate purchase agreement. So, I didn't have the complexities that other IB deals may have; nonetheless, it was a great experience to add to my resume.
I am in a bit of a dilemma, which is a very good dilemma. I've recently been approached by a boutique investment bank for an associate position at their regional office to join as an M&A IB Associate. I don't know pay structure for this shop but I know that the work-life balance is real good. I would assume the pay is a bit on the lower side of traditional associate roles.
I've recently had discussions with the owner of my current employer regarding a potential promotion to CEO and gain equity within the practice. If I were to take this position, my goal would be to create the corporate development side of the business and begin acquiring more practices to drive as much growth as we can before we'd sell the practice in 12-60 months. This creation of the department would be 100% on me and I'd be self-taught.
My question is this: Would I be crazy in leaving my current employer with the ability to acquire equity for an IB associate role? I want to do M&A for a living, that much is certain. I don't know the ins and outs of the industry and I hopefully can learn some of that in my current role and any expanded roles if given the opportunity to learn as we grow. I would more than likely be able to negotiate additional equity in the practice or have the leverage to break off the corporate development department into its own separate business that I would own a much larger percentage of equity. The associate role is enticing because I'd get into the M&A industry, learn from professionals who have been doing it for 30+ years, and grow within the firm and/or break off onto my own M&A advisory niche down the line.
If anyone has any insights or pearls of wisdom into this situation it would be highly appreciated. Thanks!
I would stay. At the end of the day you will gain most of the skills by wroking on the buyside of a transaction aswell.
The skills learned would be 100% self-taught. So, that's where I'm wondering if I am doing myself a disservice in the long-term by slowly learning things myself vs. fast track learning at an IB shop. There is no doubt the skills I learn on my own will eventually pan out, it's the unknown that makes it difficult.
Buying up practices isn’t rocket science. People do it over napkin. You don’t need regional boutique experience for that. Get a decent local law firm that can do documentation, don’t get caught in some CMS/OIG mess and don’t do out of network you’ll be fine. Do make sure you get decent equity. We sold a business recently where one key person got 20%+ when they started at ground and after 3-4 years walked away with $30mm. Don’t settle for 1-2% if you’ll be the one running around chasing stuff and also run operations
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