Hey everyone, looking for advice and seeing if anyone is in the same boat/has similar goals -
I'm currently at a crossroads of sorts. I am working in Debt Capital Markets for CRE. Making an okay pay, nothing crazy. Team is fucking dope but it's one of those stories where they are pushing to grow their pipeline, new MD joined the team and I'm a solo analyst with an associate director above me that focuses on the technical as well. I'm not tryna toot my own horn but I'm fuckin good but getting absolutely crushed right now since they take my efficacy as an ability to load me up more. Recently always in a sour mood, think my team noticed. I'm not really hiding it much anymore tbh.
Sometimes I feel like I'm not cut out for corporate life. I have the option to work for the family business and make slightly above 6 figs if chose to, they have an unsophisticated CRE acquisition component to their business and that's where I would be interested in growing and systematizing. Felt like I should avoid coming back to the fam business to early to avoid people thinking I'm failing or some shit. But I've always wanted to do Acquisitions and as my tag suggests by cre_mogul lmfao.
What would you do if in my shoes. Ride out the corporate role and see where it takes me/ try to find some time and work a few deals on my own or just quit cold turkey and turn my family's unsophisticated REI shop to something more systematized and grow it? (At the end of the day that's the end goal either way, it's an either sooner or later kinda thing).
EDIT: feel like I should add more color to the Debt capital markets role I'm in right now. I'm pushing one year, so it's still early. Team is super solid and very ambitious and super fun people. Opportunity to grow for sure but it would take ~7 years in my opinion for me to run my own deals and really start the track to start making a bag of cash. Moved for the role recently as covid slowed a bit. Girlfriend of 4 years is on the other Side of the country
Well it depends...
Lets say your family business does 10 mill ebitda. Its valued at 100 million right now (10x ev/ebitda). You work in the family business, improve it, add value, etc. The ebitda now increases to 15 million over 5 year period. Your family company will probably trade at a 12 times ev/ebtida multiple now, assuming some multiple expansion. Take credit for the 80 million in value you created, assist in selling the company and retire with your share.
Had a friend from undergrad who did something similar. Good number of friends in b-school are contemplating doing something similar after a couple years of work experience and an MBA. If your family business is somewhat sizable and not many heirs (2-3 mill in ebitda plus, 2nd generation, etc.), see if you can add value and try to make an exit. It would be much more lucrative than working in a job.
So, I am going to drop a question form of advice, and admit it is more "meta" than practical lol. But, I'll add, I've talked to a handful of people in similar situations over like 10 years, so I have some built up perspective, so maybe this is "jaded" a bit..
Pretend you DID NOT have the option of working for your family! Now, what would you do? Would you grind it out at the DCM shop (and with less than an year, i'll go ahead and say you shouldn't be in a hurry to jump)? Would you jump on the opportunity to take a job with this family business if just offered from the open (meaning you were not a family member or had any connections)? Would you do something entirely different?
So, I really don't see any issue with working in the business, but you call out a big reason you and others don't initially .. "avoid people thinking I'm failing or some shit". Honestly, the only person who would actually think that or care... is YOU. Nobody else will give a shit. If your life goals/dreams align with the family business, than I don't see the big issue. BUT, I do think your own personal esteem and worth will be MUCH higher if you can/do make it out on your own per se. Further, if you want a totally different life/career than what the family business offers... go do it! Don't feel compelled to work there just because it is family, that is as much bullshit as anything else.
So, not sure if this helped at all, but that's how I would think about it!
If I make the assumption I have no other opportunity besides corporate or entrepreneurship from scratch I guess I would stay in corporate until early to mid 30’s and build up reputation and capital before going off on my own from scratch. If the current role didn’t work out I’d jump to a different team with better pay and better work life balance and get maybe I end up staying and becoming a producer long term.
I think you’re right, no one cares if I left it’s what I care. And you’re also right maybe it’ll fuck with my self-esteem. Whole thought would be to manage the business and grow it but start my own arm, and syndicate, partner, and use more sophisticated LP’s to scale (nothing innovative or anything) but my family uses their own money to acquire and it’s slow to scale. So I guess in my own right it wouldn’t be a mooch or anything as I’d be growing my own business while leveraging my family friends and their contacts to start fueling it.
I think my goals are aligned and supported. Biggest thing that might be of benefit in my situation is that I have the ability to start earlier than most and have a safety net so I won’t go bust. But fuel to the fire to prove I’m growing the business rather than being that person that joins the family business and just parties and doesn’t do shit. No one wants to be that guy.
Why don't you say something to your team? I don't mean this to be obnoxious, but your perceived value of your work product may not be quite as exceptional as you think. If it is, then go ask for a raise, for a promotion, for something, and see what they come back with. No, they're probably not gonna put you in charge of your own team... but if they give you a 10% raise then all of a sudden, they're not taking you for granted anymore. And you always have a fallback, which you want to go to anyway.
If you feel underappreciated, say something. More generic than specific to you, but it's rare to find someone who will pay you more than they absolutely must, especially when that comes out of their pocket - that isn't to say they never will, but why would they offer if you won't ask? Worst case scenario is they say no, and you begin preparing to leave a little earlier than you thought.
You’re right I should, hey maybe you’re right and maybe I’m not that good. But I’ve been told over and over again that I’m crushing it or picking shit up and taking ownership of stuff much faster than they would’ve expected. Maybe that just inflated my ego who knows.
All I know is that I grind like 12 hours a day even though they say it’s okay to hop off. Because I know this shit is time sensitive and needs to get done. I’m more concentrated in creating processes and efficient methods than they are sometimes. I grind shit out late and work weekends without being told. I think I set the precedent and we’ve turned shit out to market even when we were strapped so they probs think it can keep happening.
To that point you’re right, I need to say something and ask for more or a promotion and better pay or close out the year collect my bonus and jump to a new DCM shop. Grind it out another 1-2 years after that and if I decide it’s time to take up the next challenge and scale my own portfolio then I can take it on then in my late 20’s.
Thank you
I did not mean to imply you aren't doing well. Just saying that the surest proof that you're performing markedly better than your peers is if they pay you for it. With the level of work it sounds like you're putting in, they'll be screwed in the short term if they don't retain you... so here's a great test of marketing your skills and work ethic and seeing what they're worth!
Way too early to jump, and especially back to your family. Let’s face it, what have you learned after 1-year, or what relationships have you made.
You should join the family close to 30 years old.it just doesn’t seem like a value add to them now.
You’re right. I think from everyone’s advice I’m getting my panties in a bunch. If anything maybe I just need to push for more or jump to another shop. Also as a heads up I’ve been in industry for 3 years just my first year at in D/E capital markets. Was in another role in CRE before
Definitely worth sticking it out for 2-years.
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