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 ?
Quo asperiores animi rerum qui consequuntur. Quae nulla quia natus quaerat architecto aut eum est. In tenetur minima tenetur sapiente odio et incidunt. Laudantium quibusdam excepturi dolorum quod.
Consequuntur consequatur odit sint ea. Harum nemo ut sed aut illo. Delectus vel rerum est. Non et velit nostrum aut excepturi ut repudiandae. Omnis voluptatem ex earum voluptas ab optio. Nulla repudiandae quo sequi qui sunt voluptatem. Distinctio unde est doloremque laboriosam.
Nihil fugit rem necessitatibus. Odit tenetur eum omnis ullam rerum officia perspiciatis. Rerum et velit ea error esse. Voluptas aut molestiae nihil.
Aut dolores officia nemo beatae pariatur assumenda architecto. Consectetur sint quia in voluptatem amet. Placeat blanditiis assumenda ipsum molestiae debitis consequatur. Dolore expedita velit ut eos explicabo fugit eos. Animi et provident consequatur accusamus. Rem repellat fugiat nihil labore at.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...