asdfsadf11
123asddsf
Keywords
asdfsadf11
123asddsf
Trending Content
| +161 | How to stop feeling like shit for not making it in IB? | 59 | 2s | |
| +118 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 59 | 1h | |
| +84 | Updated LA Banking Scene (2024) | 60 | 1h | |
| +39 | Ranking banks that went under | 23 | 4s | |
| +37 | Burnt Out M&A ASO | 19 | 2s | |
| +35 | Relevance of A-Levels for U.K. London recruiting | 24 | 3h | |
| +32 | A strategy for SA applicants late to the game like myself | 15 | 22h | |
| +27 | Series 79 Help / Tips to Pass The First Attempt | 11 | 2d | |
| +27 | Intern Ettiquette | 4 | 1d | |
| +23 | What are hours like at BBs in London? | 47 | 1d |
Career Resources
I'm very interested in this as well ... I beleive that TMT is an ever-growing sector, but with the latest trends in pharma for example, I'd have to say it's pretty confusing, and every sector or M&A product will necesarely have a big deal flow and large deals going on from one time to another ... please correct me if I'm wrong
That's what I think as well. It goes in cycles - this year pharma, next year retailer boom. The question is - what's the long running winner here?
So far I am thinking pharma (biotech is really promising) and TMT
I'm biased, but I think TMT will always have the size of the market to be important while having the prospects of rapid growth and disruption. That being said, know where you would like to focus on: corporation or consumer targeted technologies.
Regardless, I think you should first figure out what exit is more appealing to you. If it's PE, I recommend on focusing on the large cash flows, low revenue growth type of companies (Industrials, C&R) that take on a lot of debt. If it's HF, almost any industry can be relevant, but you'll have to also be exposed to the different products a company can utilize (convertible debt, etc.).
can you please explain why would an M&A analyst or associate for instance turn to PE or HF, I mean the way I see it, PE is almost like M&A, you basically do valuation and you just add the personal investment part, but for HF it seems to me that it's completely different from M&A, more like market finance and not corporate finance ... thanks in advance
You just nailed it with PE yourself - same work, double pay, half the hours. For HF M&A teaches you how to pull a company apart and tell what it's worth. HF is basically synonymous with "make money any way shape or form". They buy ANYTHING and EVERYTHING they think they will turn at a profit quickly. Hence knowing how to quickly judge a company is beneficial. Personal opinion - HF is best place to be.
In all this financial jargon, the real difference is simply information availability.
At a PE fund, you will look at companies that have, at best, a collection of excel sheets that might give a good picture as to how it is doing. And, not only do you have to gather information through due diligence to make it past your investment committee, but you have to then convince banks to put debt on the balance sheet.
At a HF, you will look at many public companies that must file complete and wholesome financial statements. But while you are able to look at many companies, you have to be able to identify which company / sector is undervalued, and the broad assumptions made can have a very large impact on your numbers.
This, in turn, also determines how fast success or failure can be measured.
As an M&A analyst or associate, you will have the opportunity to flex both muscles. PE funds are fond of M&A bankers because of their ability to look through disjointed excel sheets and manage the target company's management; both extremely important skills in PE. On the other hand, HFs are more interested in the bankers' exposure to many industries, as well as understanding what makes an interesting acquisition target and how that affects both companies in the transaction.
Personally, I enjoy tech because I know post banking, I want to work in the tech industry
The so-called "double pay half the hours" is just the hype. The truth is, if work at a megafund PE, the hours can be as long as banking, if not worse. At smaller PE shops, the pay is not necessarily better than banking. In WSO's PE forum in the last few days, one young PE associate was complaining that he was paid $70k - 80k, while he could have been paid $190k had he stayed in banking.
The worst part about pre-MBA PE associate is in most cases it's a "two-year and out" program, and the post-MBA PE role is very hard to get, and even if you can get a post-MBA role, the advancement is uncertain and usually slow. Many pre-MBA PE associates eventually end up in corporate development jobs, which pay much less than IB.
By the way, a big part of PE compensation is carry. Typically pre-MBA PE associate doesn't get carry, for carry is a long-term thing, and if you are expected to be out after two years, how can you get carry?
Then why are there such hyped concerns about exit opportunities to PE among many IB analysts? In my humble opinion, the real reason is many of these IB analysts simply lack the qualities (mental & physical stamina, abilities to understand and help client's strategy & needs, ...) to make it in IB.
The best part about IB career is that at different stages (analyst, associate, VP, ED, MD) you need to develop different skill sets, from modelling to project managent to running the entire deal process to understanding client's business and needs to being the Trusted Advisor to the CEOs. Those who don't want to develop and upgrade their skill sets at this rapid pace may escape to PE.
Well I'm definetly going to stick with IB I'm here for the long run ... I've seen a lot of discussions about "exit opportunities" and people doing M&A just to get in PE afterwards and never understood that I mean it sounds fascinating to be a VP in a BB for example, let alone ED or MD, that's litterally what I'm aiming for and your post made me realize that even more so thank you :) everything starts with the summer internship obviously so wish me luck, I've worked hard, and it should pay.
Are you expecting recruiters here? Because you sound like you are pitching one.
Anyway in response to your question about HF - HF doesnt revolutionise anything. I like to think of HF as a machine built for one and only one purpose - making as much money as possible. Which is why it's so good at it.
Unless regulation rolls in (which it may if we crash again (which we will because we always do)), HF will continue to be a grey zone: a "I do what I want" vehicle. Want to invest in Asia? sure. Want to buy futures? bonds? options on elephant extinction? - sure. Whatever you may wish and no 5 year BS horizon.
PE is good but to me it's just a HF with more bells and whistles around it.
Can we come back to the original question on sectors now haha
Pick a sector your interested in - the money will surely follow
dumb questions - the answer to all of them is what you like or what you're good at. Your industry group doesn't define you, you determine what an industry means to you.
Go where the fees are, esp the good fees typically form noncompetitive pitching TMT & Healthcare - currently where alot of banks are getting good fees FIG - always a solid sector, lots of niche opportunities Industrials/Consumer - probably overbanked globally Real Estate - Good fees here too, again lots of niche operators/groups Restructuring - Good fees, lots of work, question mark on whether it will last?
Thank you for this post, really helpful ... what baout country coverage? The latest trends in pharma for instance show that a lot of companies try to acquire firms based in Great Britain for tax reduction purposes, do you think it would be strategic, if working in London, to choe UK coverage for a good deal flow over the next few years ?? Thanks in advance.
Which one was that guy from the movie with that M&A guy from... you know the guy who was in Batman??
THAT ONE MUST BE THE BEST.
MUST BE I KNOW WHAT'S HIS NAME
Error molestias minus aspernatur recusandae aspernatur ut. Quos modi totam minima velit quo dolor.
Totam commodi labore laboriosam tenetur aut rem eligendi debitis. Aliquam consequuntur voluptatem perferendis minima aut. Nihil et eaque sed labore odit quisquam ad. Eos similique perferendis vero temporibus veritatis quia eligendi. Quae culpa laboriosam nihil sequi. Molestiae et sint aut officia repellendus delectus consequuntur cum. Aut excepturi incidunt consequatur tempore voluptatem quibusdam. Adipisci odit modi iure nulla.
Ab quos voluptatum eligendi sit ut tempore. Ducimus voluptatem sed ut eum voluptatem perspiciatis vero neque.
Dolores suscipit earum provident veniam accusantium. Debitis aliquam optio nihil provident. Veritatis esse quia molestiae voluptatem quidem minima quis inventore. Cumque corrupti optio sunt dolore ducimus reprehenderit.
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...