Decision to be made
Hello everyone I’m writing because I need some external guidance. I have two offers, both at investment banks. At one however, I wouldn’t be doing investment banking directly, rather, valuation work. The other offer is at a small middle-market investment banking doing M&A. Both jobs have the same base pay
Here are some pros and cons to each with my 3 most important factors to decide being exit ops, overall happiness, and location
Pros of option 1 (valuation): -More recognizable brand name from firm -Located in Dallas-more ppl I know would move here post-grad - exposure to both valuation of PE businesses and private credit - less overall hours than IB
Cons of option 1: - culture fit ( when I met team, felt like everyone was older/ very different personalities) - Uncertainty about exit to PE ( been told it’s possible but not traditional) - read threads about monotonous work
Pros for option 2 ( generalist M&A Investment Banking analyst) - work is more interesting imo - traditional 2 & out path to private equity - better pay traditionally in investment banking - would be apart of the 3rd ever analyst class so people tend to be closer to my age
Cons for option 2: - Location- I despise Houston - less friends/ people I would know in the city - much less brand name presence than option 1 - longer hours in ib
Ultimately, I with whatever opportunity I pick I will work incredibly hard. However, some guidance would be extremely helpful from those in either field. To note with option 1, from what I’ve read it is not uncommon for people to go from valuation to IB but typically people don’t go from valuation to PE. Thanks yall
Based on the most helpful WSO content, here's how you might approach this decision:
Key Considerations:
Exit Opportunities:
Overall Happiness:
Location:
Recommendation:
If exit opportunities and career trajectory are your top priorities, Option 2 (M&A IB) is the better choice. The traditional path to PE and the more engaging work align with your long-term goals. While the location is a downside, this is a short-term sacrifice for a stronger career foundation.
If overall happiness and location are more important to you, Option 1 (Valuation) might be the better fit. However, be prepared for a less direct path to PE and potentially less engaging work.
Final Thought:
Given your stated goal of working incredibly hard and prioritizing exit opportunities, Option 2 (M&A IB) seems to be the stronger choice despite the location challenge. The traditional path to PE and the more interesting work could outweigh the temporary discomfort of being in Houston.
Sources: Investment Banking Analyst: A True Day in the Life, IB vs PE vs VC : The rundown, Houston energy banking GS vs CS vs Barclays vs Citi - GS for PE exits?, Breakdown of Post-IB Exit Opportunities, Q&A: Investment Banking Associate
Which do you value more at this point, social life or career development? If social life, pick option 1.
Are your long-term goals more aligned with valuation advisory services skill set or investment banking skill set? If valuation advisory, pick option 1.
Otherwise, would go with option 2. For most of us mortals, the cardinal rule is “you can’t have it all (at once)”. You might have to go to a less than dream city to build the experience you want.
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