Hi everyone,
Currently a first year analyst in corp dev (M&A) at a mid-sized pharmaceuticals company. I landed this position right out of undergrad after doing a summer in MM IBD. I haven't seen many clear answers on exit opps out of entry-level corp dev, but I'm looking for anyone to share their experiences exiting from entry-level corp dev into other buy side roles.
Thanks
It's more common to see those exit entry level corp dev to other company's corp dev, internal move (to something like FP&A or strategy), or IB. I personally don't know anyone who left entry level corp dev into PE, but have seen someone who was a little more senior in a corp dev role leave to run corp dev for a portfolio company.
I agree with most of the above. PE is possible out of an entry level corp dev role. Difficult but possible. I started as an analyst in a corp dev team at a ~F100 and will leaving for PE in a couple of months.
It is not easy and you will need a solid sales pitch as to why they should hire you over a banker (superior industry knowledge, high deal flow, exposure to diligence, legal docs, etc.). You'll really have to sell the PE firms that your experience is as applicable to PE as banking. Your PE options will likely be limited to firms that focus on pharmaceuticals (I'm joining a PE firm in the same industry as the corp I work at). Mega and large MM will also be extremely difficult. You're going to need to find smaller to lower MM firms in your industry.
You'll also have to nail the LBO and case studies. This required some extra practice for me because my corp has a healthy balance sheet and typically just uses cash to fund acquisitions. The WSO PE guide was a big help in preparing for interviews and case studies.
Just curious, can you expand on your value proposition to PE (coming from CD over a banker)? What areas were you exposed to that bankers aren't?
TIA
Sure, but keep in mind this will vary for everyone as I imagine CD roles are not uniform.
Superior Industry Knowledge - I was fortunate enough to work in a group where they thought it was important for me to really understand the company / industry. From day 1 I was visiting manufacturing sites, attending industry conferences, etc.
Strategic Rationale - I think one big advantage is that I've been constantly working with our company's leadership and strategic business managers. We work very closely with them and I was able to learn a lot about the strategic rationale for all of our acquisitions. This will be the highlight when talking about deals with PE firms. They want you to know more than just all of the numbers. They want to see that you are starting to think like an investor (Why not just how).
Diligence - In my experience (could be wrong) a junior bankers main exposure to diligence is managing a Q&A list and loading / downloading files to a VDR. They don't spend a lot of time preparing or reviewing the documents. When we were divesting a business line, I was actually helping to create the documents that were used to answer the seller's questions. I learned a ton through this process. On the buyside I'm working with our back office functions like HR, Tax, etc. to see where there might be exposure / issues.
Deal Flow - This will be highly variable, but my company is very active and I was fortunate to work a lot of deals. Some were relatively high profile, which I think helped during recruiting.
I was also able to travel internationally several times and participate in SPA/APA negotiations (not as exciting as I thought it would be..), conduct diligence, meet with management teams for potential acquisitions / JVs.
So, overall I think you'll have to demonstrate that not only did you learn how to model / plow through a VDR, but that you're comfortable with the deal process, interested and knowledgeable about your industry, and have started to think and act like a principal investor.
please excuse grammar / typos
What is the comp like for an entry level first year in Corp Dev as well as hours? I currently work at a F100 AM and can make a internal move over to Corp D. but was curious. I'm at large insurance co, so obviously our deal flow will be a lot less than pharma.
Entered between 55 - 65. Progressed up to 70 - 80 after about 1.5 years.
Wow, that's really low. CD salaries are all over the place it seems. What are you making at the PE?
Started at 70 base + bonus. Working 50-60 on slow weeks, but can ramp up to 70 when projects are heating up
Congrats on the role. Entry level cop dev right out of undergrad is a tremendous opportunity. Generally, exit opps are on par with banking from what my experiences were, particularly if your company is highly acquisitive and you've been involved with the granular parts of the deal process (reading through legal agreements, negotiations, due diligence, industry research, et al).
In terms of conventional exits, healthcare focused PE, VC, IB, and jumping over to do corp dev at another company are viable options. The latter is the most logical progression, but you can make the move to PE if you network and connect with your seniors, who should have a sizeable rolodex of contacts that you can leverage. Do you have interest in remaining in Corp dev long term? It's generally a very good balance of comp / work life balance if that's what you are looking for.
bump
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