Corporate Development Role at $200 mln + Market Cap Company

BBnkr10's picture
Rank: King Kong | banana points 1,128

Hey everyone,

Need some advise/discussion on this matter; if ya'll have some free time, please do comment and give me your insight.

I have received an offer to be an Analyst in this company's in-house M&A/corp dev. team. Right now, they have a director, who does everything, and he really needs an analyst that reports to him. The director reports to the CFO. Now, the company went downward after 2008. All execs took pay cuts, and the bottom line and cash was not great at all. However, since this earnings season, they have reported their first substantial profitable quarter, and it's huge. They are getting ready to acquire many other companies and are really growing (evident in their financials). They just got a round of term debt and have the capex in place to grow their operations even more.

Should I really consider this offer -- given that this may be the start/foundation of an entirely new company (they are also in the process of moving to a bigger and better HQ office)? Also, according to CapitalIQ, compensation has been trending up.

Also, in the near future, if I would want to go back to banking, how possible would that be?

Thanks guys.

Comments (13)

Feb 14, 2013

In all seriousness, this sounds like it could be a great opportunity. You'd be getting onboard with a company that is looking to grow in a role that gives you serious exposure to top top top management. Is it in an industry of interest to you?

Feb 14, 2013
ddp34:

Hey everyone,

Need some advise/discussion on this matter; if ya'll have some free time, please do comment and give me your insight.

I have received an offer to be an Analyst in this company's in-house M&A/corp dev. team. Right now, they have a director, who does everything, and he really needs an analyst that reports to him. The director reports to the CFO. Now, the company went downward after 2008. All execs took pay cuts, and the bottom line and cash was not great at all. However, since this earnings season, they have reported their first substantial profitable quarter, and it's huge. They are getting ready to acquire many other companies and are really growing (evident in their financials). They just got a round of term debt and have the capex in place to grow their operations even more.

Should I really consider this offer -- given that this may be the start/foundation of an entirely new company (they are also in the process of moving to a bigger and better HQ office)? Also, according to CapitalIQ, compensation has been trending up.

Also, in the near future, if I would want to go back to banking, how possible would that be?

Thanks guys.

You could move back to a MM IB if you wanted, but better yet, you'd be a solid candidate for MM PE.

I think it sounds like a good opportunity, but expect a pay cut. Probably $80-$100K with 25%. Could vary some, but given the current stage of the firm, comp isn't going to be as lucrative (higher base, much lower bonuses).

Another positive is expect to work 40-50 hours/wk, unless there is a deal in the works.

Feb 14, 2013

Thanks guys -- appreciate the advice.

Would corp dev. to PE really be possible? I mean I'll be having exposure to bankers coming in and pitching us companies, the whole transaction (but keep in mind these are very small transactions right now, will grow in the future, but right now they are small companies that they acquire), mgmt presentations, pitching to acquisition candidates, etc. Also, since it's a publicly traded company, I would probably be exposed to investor conferences, and other IR's stuff (not sure if that would be relevant to PE, but it's good exp. nonetheless).

But yeah, main question is, given the current state of the company and how small it is, will I have exit ops?

And yes, it is an industry that I am interested in, however I am concerned that once I get into the corp. side, making it back to banking/PE (if I chose to pursue) is hard?

Feb 14, 2013
ddp34:

Thanks guys -- appreciate the advice.

Would corp dev. to PE really be possible? I mean I'll be having exposure to bankers coming in and pitching us companies, the whole transaction (but keep in mind these are very small transactions right now, will grow in the future, but right now they are small companies that they acquire), mgmt presentations, pitching to acquisition candidates, etc. Also, since it's a publicly traded company, I would probably be exposed to investor conferences, and other IR's stuff (not sure if that would be relevant to PE, but it's good exp. nonetheless).

But yeah, main question is, given the current state of the company and how small it is, will I have exit ops?

And yes, it is an industry that I am interested in, however I am concerned that once I get into the corp. side, making it back to banking/PE (if I chose to pursue) is hard?

1) Yes corp dev to PE is quite possible. There are plenty of PE guys that were in corp dev previously. In the corp dev role, you are conducting similar analyses and basically "rolling up" companies into the existing/parent company. Additionally, you also will have to monitor the new acquisitions, help with the integration, conduct the due diligence, etc.

2) The size is on the smaller side, but I see no reason why you can't lateral or move to a MM PE shop down the road. Same with MM IB (think Baird, HW, Blair). It would be very difficult to move to BB IBD or megafund PE groups without lateraling to a larger corporation and working on large transactions first.

Feb 14, 2013

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Feb 14, 2013
BTbanker:

Why do you guys keep losing basketball games?

UMich?

Feb 14, 2013
peinvestor2012:
BTbanker:

Why do you guys keep losing basketball games?

UMich?

yeah

Feb 15, 2013

hi, may I ask what does $200mln refer to?

Feb 15, 2013
taugei:

hi, may I ask what does $200mln refer to?

No you may not.

Feb 15, 2013
taugei:

hi, may I ask what does $200mln refer to?

Its refers to 200 million dollars, the company's market cap

Feb 15, 2013
The Kid:
taugei:

hi, may I ask what does $200mln refer to?

Its refers to 200 million dollars, the company's market cap

I see! I read it as 200 mln + market cap, so I thought it might have referred to debt (which is just odd)

I'm in a similar role, with a market cap of ~1bln. I think the learning opportunities will be plentiful, but I expect you'd need to network a lot and let people see the quality of your experience.

Feb 16, 2013
ddp34:

Hey everyone,

Need some advise/discussion on this matter; if ya'll have some free time, please do comment and give me your insight.

I have received an offer to be an Analyst in this company's in-house M&A/corp dev. team. Right now, they have a director, who does everything, and he really needs an analyst that reports to him. The director reports to the CFO. Now, the company went downward after 2008. All execs took pay cuts, and the bottom line and cash was not great at all. However, since this earnings season, they have reported their first substantial profitable quarter, and it's huge. They are getting ready to acquire many other companies and are really growing (evident in their financials). They just got a round of term debt and have the capex in place to grow their operations even more.

Should I really consider this offer -- given that this may be the start/foundation of an entirely new company (they are also in the process of moving to a bigger and better HQ office)? Also, according to CapitalIQ, compensation has been trending up.

Also, in the near future, if I would want to go back to banking, how possible would that be?

Thanks guys.

Does this company know you lied on your resume and claimed you worked for JPM BB IB in Jersey City?

Feb 19, 2013
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