Is PE recruiting easy at consulting friendly firms?
There's a thread on r/consulting with a MBB analyst who recently accepted an UMM offer.
He said he didn't really have any finance knowledge or background, just worked on a few due diligences, and did the following to study:
"Maybe 2 hours to learn a paper LBO and 1 hour to understand the inputs to it (depreciation WC etc.)
Didn’t study much else, just really knew the deals I worked on very well..
Started prep the weekend before maybe spent 5ish hours total"
Is this little preparation typical for consulting friendly PE funds? I know they do case interviews and stuff too which is different, but I imagine if you're at MBB, that part won't be an issue at all either.
It's easy from a technical side. You don't have to know how to model, or necessarily even know what a PIK loan to get an offer at some of the top consultant friendly funds. That being said, these funds are looking for the instinct to dissect and articulate a business' value levers and how that translates to a successful deal. The differentiator is getting to those second-level insights. You would be surprised at some of the answers I've heard from bankers, who were absolute model crushers, when asked to present a thesis on a business. I've heard "this is a good business because historical revenue growth is strong, margins have gone up, and it has reduced capex" which no qualified consultant candidate would ever say.
Hahaha the last point is super true, definitely not dismissing the value of the consulting skillset and preparation, just surprised that 5 hours of prep is enough on the technical side. Great to hear though :)
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