Acquisition Analyst Compensation

Hello WSO - seeking insight on what the typical acquisition analyst compensation structure is like. Coming in as an outsider from the Planning industry looking to make a shift. Currently in talks with a very small (but active) residential developer and the role I've been posed is 100% commission based (after a training period with stipend). 


Also, are there any indicators I should look out for to ensure the role in the company is one that would lead to a well-rounded skillset? From my understanding, the analysis involved seemed fairly basic as the position appears to be more focused on zoning due diligence.

Located in Greater Los Angeles region.

 

Hi Pluto -- ha yeah I've been scouring the forum and it appears very unusual for compensation to be structured this way. Thought I'd reach out to see if this was really as unusual as it seemed. With that said, there is option to switch to salary with lesser commission, but discussion on this is still ongoing.

TY

 

If you have zero experience, I would be looking for more than just acquisitions jobs. Lending, appraisal, asset management, brokerage, etc are all good options. Lateral after a year of doing one of those. That’s a more realistic path and one year in brokerage or whatever is nothing.

Don’t take a 100% commission role, it sounds sketchy

Array
 
Most Helpful

For your first role, don’t take 100% commission. Firms that do this generally are syndicators (which is fine) that don’t have great access to capital. I’ve seen some firms do this that do have great access to capital, but it’s a cold calling role. For your first job, I would not recommend cold calling. These firms generally are chasing small multifamily 5-50 units. Returns from an IRR and Equity multiple perspective in this space can be huge. But if you’re cold calling and don’t dig up a deal for 1 year (likely) and you need money to live you probably will need to look for another job. Although this gets you in the door, you won’t be getting strong analyst experience as all you’ve done is cold call. Assuming I am correct in reading through the lines here, don’t touch this job. They should be willing and able to pay you a respectable base salary. In a major metro this would be approximately $70,000. If you are considering this job, and I am correct about the cold calling aspect - I would personally consider being a broker where you’ll be doing the same job but just looking for listings instead. You also won’t make money for a year (or two) but the upside is higher. The firms that do 100% commission for cold calling / sourcing roles don’t pay nearly as much as a listing fee. But they get you hooked with: “you’re doing acquisitions - it’s the buyside.”  In reality-they just need cheap labor to find deals for them knowing they will churn through these fresh starry eyed graduates in 9 months but keep the leads and grow the business. The profits stay at the top. There’s nothing wrong with this business model - just know what you’re getting into. 

 

Do not take a 100% commission acquisition role. Those shops are well known in their respective markets and wont help you over any other company and will pay you less. All you will be doing is cold calling for deals, little skill development you absolutely need early in your career.

If you want to go sales route to start your career (I did and I wouldn't do it differently) then go to a brokerage firm that can set you up and train you properly.

Most NYCers who browse SelectLeaders will be familiar with Rockfeld Group and their constant openings for "VP of Acquisitions" that only require 1-2 years of experience. Same type of group.

All that being said any job in the industry is better than no job.

 

Autem illum doloribus enim qui cupiditate. Deleniti nisi ipsa recusandae voluptatem optio. Id earum modi architecto laborum quia suscipit voluptatem sed.

Et nesciunt quidem beatae est corporis cum. Nostrum ad sed dolor eum id ea est. Eveniet inventore voluptate iusto atque. Ullam suscipit non amet officiis. Vitae quidem facilis alias. Qui incidunt quasi et harum reprehenderit dolorem quis necessitatibus.

Voluptatem culpa excepturi adipisci et voluptates laboriosam quos reiciendis. Ut qui ea sed debitis.

Ratione adipisci sit et fuga rerum consequuntur beatae sunt. Necessitatibus quisquam id rerum odio provident similique consequatur. Aut non et cumque consectetur repudiandae.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
kanon's picture
kanon
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”