Career Advice - Consulting or Valuation Shop?
I have two opportunities, one to work for a non-MBB consulting firm as a business analyst, or to work for a small valuation shop out of undergraduate.
The consulting firm pays signficantly higher and given the current market the position seems fairly stable, however I'm wondering which opportunitiy would give me the greatest exit opportunities looking forward. I would like to perhaps lateral after a year or two after the market clears up (into a analyst/banking role). If anyone can shed some light and/or opinions, it would be greatly appreciated.
It should be phrased "IF the market clears up" not after.
I think either option will be fine. It will be a struggle to get into banking because there will be a good amount of qualified people trying to do the same.
I would take the the job that I would enjoy the most and learn the most. You have a good amount of time to make money. The earnings should not be the most important factor here.
There are plenty of people out there that would kill to be in your shoes. Just pick one.
But..heh I would take the non-MBB consulting offer since it does pay more. How much travel is in involved, what kind of work will you be doing? Have people heard of it (Mercer, Huron)?
How small is the small valuation shop? Has anyone heard of it? What do they value, real estate, M&A, solvency? What would I learn? What have others gone on to do?
Small Valuation Shop might give u better experience if you want to do banking at the end.
As for business analyst role in consulting, is your business analyst definition the same as defined in banks. I.e. Business Analyst between front office and back office.
Ling~
Be careful about small valuation shops. You may be doing more valuation related to estate planning than core valuation of business enterprises such as for financial reporting or tax purposes... which builds the analytical skills that are most directly related to work you would find in IB.
If you could do so, go back to the senior managers and ask them what their valuation portfolio mix consists of. It's a reasonable question as you try to determine "fit" and a career with the team. So ask them what their bread and butter is, i.e. valuation for financial reporting, tax, estate planning, dispute resolutions (aka litigation), real estate, machinery & equipment etc.
If it's real estate or machinery & equipment, they would have already told you that. All valuation shops position staff into either their "business valuation" practice (and they might also have industry verticals within that practice) or RE and M&E.
The valuation shop focuses mainly on individual security valuation (portfolio valuations for institutions/hedge funds) and are beginning to research valuation in the distressed debt market, mainly for tax and financial reporting purposes. Looking forward they may or may not be involved in more business enterprise valuation. Firm is growing fast in this market.
The consulting position is in the financial services group focusing on management and strategic consulting with some sort of IT implementation. It seems to be a legitimate project/client analytical position. Would require a good amount of traveling.
Thanks for all your input already, any other suggestions would be appreciated
Well, you've clarified the type of valuation that you would do...
There is a dire need for professionals with experience in "portfolio valuation". Given the volatility that we've had in the financial markets due to the pricing of various derivative instruments, having any portfolio valuation experience is attractive on a resume. On the other hand, once you go the portfolio valuation route, you are setting yourself up to work in a very niche valuation practice area.
The consulting position sounds broader in scope and would give you the opportunity to interact with clients much more so than you ever would in portfolio valuation.
So one way to think of this career decision --- reflect on what is more important to you, e.g. highly sophisticated analytical work or high degree of client interaction?
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