IB FIG vs PE Audit Big4

Based on the most helpful WSO content, here are some insights to help you decide between an internship in IB FIG coverage at a large EU bank and a Big 4 audit in private equity real estate/investment management, with the goal of getting into M&A after graduation:

IB FIG Coverage at Largest EU Bank

• Pros:

  • Reputation: Working at a large EU bank can add significant value to your resume due to the brand name.
  • Experience: Exposure to FIG (Financial Institutions Group) can provide a solid understanding of the financial sector, even if it’s more debt-focused.
  • Networking: Opportunity to build a network within a large financial institution, which can be beneficial for future moves.

• Cons:

  • Limited M&A Exposure: Since the role is more debt-focused, you might not get as much direct M&A experience.
  • Labor Laws: Inability to extend the internship due to labor laws might limit your time to gain more experience.
  • Relocation Uncertainty: Moving to the London office or another bank might not be guaranteed and could be challenging.

Big 4 Audit in Private Equity Real Estate/Investment Management

• Pros:

  • Diverse Experience: Working in audit for private equity real estate and investment management can provide a broad understanding of financial statements and valuation, which is crucial for M&A.
  • Path to TS: Transitioning to Transaction Services (TS) in the next internship can offer more direct M&A-related experience.
  • Classic Path: Big 4 firms are known for their structured career paths, which can be advantageous for moving into M&A.

• Cons:

  • Audit Focus: Initial focus on audit might not be as directly relevant to M&A as a role in investment banking.
  • Brand Perception: While Big 4 firms are prestigious, they might not carry the same weight as a large investment bank in the eyes of some M&A recruiters.

Recommendation

Given your goal to get into M&A, the Big 4 audit role with a path to Transaction Services might be more beneficial in the long run. This route offers a more classic and structured path to M&A, with the possibility of gaining relevant experience in Transaction Services. However, if you can secure a move to a more M&A-focused role within the large EU bank, that could also be a strong option.

Additional Considerations

• Networking: Regardless of the path you choose, make sure to network extensively. Connections can often open doors that might not be immediately visible.
• Skill Development: Focus on developing skills that are directly relevant to M&A, such as financial modeling, valuation, and deal structuring.

Hope this helps!

Sources: Best first internship for indecisive students: Boutique M&A, Big 4 Transaction Services or something else?, https://www.wallstreetoasis.com/forum/investment-banking/is-a-big-4-internship-a-complete-joke?customgpt=1, Need advice on my internships options for this summer, What was your path to a Real Estate Private Equity job? Looking for advice, Q&A: From Big4 Audit -> Big4 Advisory -> MBA -> AM Portfolio Manager