EY TAS Val vs Alvarez & Marsal Val

Randomwalk45's picture
Rank: Chimp | 14

If you had to choose between the following two offers which one would you choose and why?

Alvarez & Marsal Valuation Services - Sr. Assoc. - 20-25% year end bonus based off hours billed.
EY TAS - Valuation & Business Modeling - Senior - 10% year end bonus, however EY is offering 10k more on the base salary

A&M work is primarily focused on Alt. Investment Portfolio Valuations (HF, PE, Credit, Distressed) for quarterly and annual reporting purposes. There is some work regarding valuations of Complex Securities too. A&M is also viewed as more of a finance shop. While valuation is not the main business focus of A&M, they do have a restructuring and IB arm. Not sure if lateraling is possible, but it's worth noting.

EY work would be broader and focuses on valuations for year end audit work. Work also includes Purchase price allocations, goodwill impairments, and some niche work regarding portfolio valuations. EY is obviously known as an accounting shop so while this is part of the trasnascation advisory group, I'm not sure that this would be viewed as "deal" exposure.

Note that I already have prior experience at a diff. Big 4 in tax as well as experience doing valuations in-house at a tier 1 alternative asset mgr. What is the better offer and why? Which would have the best opportunities in terms of IB/Bschool/or just staying put?

Comments (5)

Most Helpful
Nov 30, 2019

A&M utilise Bval people for other things too depending on need. Eg a restructuring client needs to communicate to banks the value of their assets for collateral.

Also the bonus could be upto 100% for A&M depending on utilization. The formula is hours billed during year (but more specifically the amount of that which is collected) then X your rating %. Eg at SA this could be 22-30%. Everything above your salary is the bonus.

100% take A&M. I don't think I've ever seen someone go from A&M to big 4. Always other way round.

    • 3
Dec 1, 2019

Thanks for the response. A few questions: What does SA mean? Can you touch on the specific differences between the AM bonus structure and Big4 bonus structure? Also, does AM charge significant discounts to win business from big4 or are their rates/amount of work similar? I only ask because it seems that the amount of work and rates charged to clients would directly effect bonus...

~Randomwalk45

Dec 1, 2019

Senior associate

A&M bonus is transparent formula. Rating = % range.
Cash Collections X % minus salary = bonus.

Big 4 is just % of salary + top up potentially based on performance (although I didn't work in consulting / advisory there but I am 99% sure it's nowhere near as transparent as A&M)

A&M doesn't need to underbid to win business. Big 4 has shitloads of audit conflicts meaning A&M is winning business left right and centre across all service lines. Just look into their revenue and FTE growth past few years.

You'd be crazy to chose Big 4 imo. They might be a bigger name in transactions / business Val but you'll have much more conflicts and buearuacracy and less comp

    • 1
Dec 3, 2019

Ok you cleared it up, thank you for explaining

~Randomwalk45

Dec 1, 2019
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~Randomwalk45