Q&A + Opinions welcome; Does Commercial Due Diligence actually build 'Investment + Evaluation' muscle better than IB ?
Question for Consultants + Bankers + Investors (PE and Growth), in your experience does the workstreams in Commercial DD (especially by MBB) actually help build/hone 'investment' + 'evaluation' muscle better than junior bankers ?
What would your recommendation be to junior bankers who want to bridge this 'evaluation' muscle on their own ?
How well does the Private Equity Practice of MBB address build/address this muscle ?
Based on the most helpful WSO content, here’s what you need to know:
Commercial Due Diligence (CDD) vs. Investment Banking (IB) for Building 'Investment + Evaluation' Muscle:
Recommendations for Junior Bankers to Bridge the 'Evaluation' Muscle:
Private Equity Practice of MBB:
In summary, while IB provides a strong foundation in financial analysis and deal execution, CDD (especially through MBB's PE practice) offers a more strategic perspective that can better hone investment evaluation skills. For junior bankers, combining their financial expertise with strategic insights from CDD-like experiences can create a well-rounded skill set for investment roles.
Sources: Why private equity practice vs. general practice?, https://www.wallstreetoasis.com/forum/investment-banking/breaking-into-private-equity-from-banking?customgpt=1, A Guide for Switching From Commercial Banking to Investment Banking, Family office Private Equity - help, https://www.wallstreetoasis.com/forum/investment-banking/should-i-pursue-st-or-ib?customgpt=1
On the junior levels the bankers easily win. Then in mid+ potentially the consultants. At Partner level it’s irrelevant. Associate / sr aso to VP is probably the hardest promo hurdle until you go for Partner, so depends on where you want your steep ramp to be
In your opinion/experience, what gives consultants that edge at the mid-level v/s bankers at the junior level ?
In a nutshell, asking what the difference(s) in hard skill components are that make the consultant/banker more suited for the move at their respective timelines
usually better commercial judgement, which starts mattering more over time - while financials / modelling etc where the bankers have an edge becomes less important (or at least you do less of it yourself)
That actually makes sense
Would you have an opinion on PEG/PEPI/PIPE at an MBB v/s their general consulting roles ?
Intuitively, one would say that PEG/PEPI/PIPE should act as a better feeder to an investing role, has this been your experience as well ? Or does the project diversity in a non-CDD practice actually have a meaningful value add ?
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