CB>IB>CB???...

Long story short, I started off my career at a MM commercial bank, and laterald about 6 months ago to a boutique IB and I am now thinking about going back to MM CB, but at a larger MM firm. I'd be making ~$70k all in first year at the CB in a low COL citywith 40 hour weeks, 20 paid days, nice 8-4/9-5 culture. I just can't stand getting weekend emails from my MD... call me lazy but I have better shit to do than be attached to the hip with work.

I'm just worried that if I do make the move, lateraling to a larger IB is history, as well as b-school.

Any thoughts? I know this comes down to personal factors but wanted to get some feelers. This new MM CB is only a 3 hour drive from home, where as my boutique IB is a 30+ hour drive from home..... also a huge factor

 

First off, you're bound to get far more people telling you to stay in IB, because this forum is largely filled with kids who are dying to break into IB. I'm going to agree with them, and here are my thoughts.

  • You're six months into IB, which is probably when most analysts are at the peak of their misery. You're too early on to really know what you're doing, so everything takes you 3 times as long as the kids in the class above you, and you're getting stuck with all the bullshit. You're likely pissed off and tired half of the time. I don't think this is the right time to make a major career decision.
  • I think you'd be making a mistake leaving IB so early. Yes it sucks, but you will learn way more in two years in IB than you would likely learn in 2 in CB.
  • You're correct in your assumption that lateraling to a larger bank is history. I can't imagine how you could tell the story of CB > IB > CB > IB in an interview.
  • I disagree that your shot at b-school is over, but you're far more likely to place better with a CB > IB story than CB > IB > CB.
  • Apart from larger IB or B-school, your other options are far greater coming from IB. You will not have access to buy-side rolls from CB, and you will have access to a far greater corporate development roles from IB than you would CB.
  • I get it, you don't want to be married to work. Being a BB analyst was brutal, but I would 100% do it all over again. I'd say you work for at least a year and then make a more informed decision. You can always churn out two years IB and take a more relaxed exit into corporate dev or something. That will likely be more lucrative and more interesting than CB.
  • Being far from home can be a short-term thing. I 100% understand if your desire to be near family and friends outweighs your career goals. But again, just do it for a year or two. Also, fly the fuck home as opposed to driving 30+ hours.
 

As a former CB analyst, you'd be making an awful decision. You learn more in 3 months in IB than you would in a year in CB. Make associate before switching back. Grind your ass off until making a decision like this. Saconsult3 is 100% right.

An associate at a MM IB easily converts to a VP at a commercial bank. I've seen it happen.

 
Best Response

saconsult3's post is excellent. Let me build on that and offer some of my own advice. Honestly, OP, it sounds like you had a rough day or week and are just venting.

  1. I'm just going to be frank: your line of thinking makes no logical sense. If you cannot stand weekend work at a boutique, you will get eaten alive at a larger bank. If weekend work is not an option for you, lateraling to a larger IB is already history, but not because you want to move back to CB.

  2. I hate weekend work too. When I was in IB, nothing would annoy me more than some MD who just had to have his pitchbook done by Monday morning so that he could review it 100 times before his meeting the next Thursday. But, everyone who is successful/is highly compensated works long hours/does at least some weekend work. I sit very close to the "c-suite" corner of my office. Guess who is still in the office at 7 PM? The CEO, the CFO, the head of corp dev, etc. Guess who is always willing to join us for IOI calls on the weekend? The CEO, the CFO, and the head of corp dev. I don't believe in living to work like many on WSO do, but I am aware that if I ever want to make seven figures, long hours are/will be required.

  3. How can you decide that IB is not for you after six months? I would say the first YEAR is absolute hell on Earth for most analysts. I've seen one analyst get up to speed in six months, but he was a complete rockstar. It took me a full year to "get it". Just to be frank: you have no idea what IB is or whether or not this is a career path for you. I would stick it out for at least a year.

  4. I don't think that business school is over, but your story is going to be choppy/incoherent and won't make any sense. How do you explain moving from CB to IB and back to CB? I cannot imagine adcoms accepting "the hours weren't for me" or "I wanted to be closer to home" as an answer, especially when you chose to leave CB for IB, as opposed to starting in IB and then leaving for CB.

  5. My two years in IB were some of the hardest times I've ever had. Between the hours, to the merciless bosses, to the ridiculous client, IB is a very tough career, especially for someone in their 20s. But, and I say this without hesitation, I truly believe that no other career path can set you up for the future the way that two years in IB can. I don't mean this as a way to put other career paths down, I really don't, but when I compare what I learned, how my critical thinking skills developed, how good I am at Excel/PowerPoint, how I can crank out valuation models left and right, how I can put together a professionally-looking presentation, and how strong my work ethic is to where my friends who started in other areas of business, there is no comparison. If I could do it all over again, I would not hesitate to spend two years in IB again.

  6. When I left IB, I got a few offers from some F100 companies for prestigious corp dev roles. I turned them down to work at a "lesser" firm that was closer to home. So, I get where you're coming from, but you haven't really even started your career. You have not built up a skillset or a brand that will allow mobility. Spend two years in IB and then take a role closer to home. That way, if that role closer to home doesn't work out, you still have that IB skillset to fall back on.

  7. You will be miserable when your buddies at bigger banks are bumping up against $200k and you're making $70k. Don't get me wrong, $70k is a lot of money, and most Americans would kill to make that much, but we humans view everything in relative terms. Just something to think about.

 

Alright I'll bite and offer a counterpoint - at the end of my analyst stint in IB, I definitely considered moving to CB (no FT experience in CB but I did intern at one). I was miserable, my analyst buddies were miserable (0/8 in my group stayed on for a third year), and I just wanted a normal life and to be able to play IM sports, have hobbies, see my friends and family without cancelling dinner/drinks every weekend, etc. My buddy in CB had that life, while working like 9-6 or 9-7 at a BB and making pretty good money, so I definitely thought about that route. I actually ended up on the buyside but I'll give my thoughts on the rationale for CB below.

  • Pay: You'll probably be making low six figures in CB with a few years under your belt, which is more than enough to sustain a good happy healthy lifestyle in most places. Yes, you could be earning more in IB, but the incremental dollar has incredibly diminishing marginal utility when you're working 80-100 hours a week.

  • Exits: This is for sure going to go to IB. But if you don't care about the buyside, my sense is it's much more level if we're talking more corporate roles and whatnot. I don't know much about the b school route but I'm gonna talk out of my ass and offer my 2c anyway (but grain of salt) - there are plenty of people who don't do IB and get into good b schools. Yes, your "story" won't be as coherent but I assume you're a smart kid who can find a way to spin it favorably. I do agree that doing something like CB>IB>CB>IB is dumb though.

Anyway, I'm not saying you SHOULD move back to CB, but it's not that crazy of an idea either. You've already explored both roles so you know the drill already - it just comes down to what you prioritize/value more.

 

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