E&Y Valuation & Business Modelling Exit Opportunity (Canada)

Hi recently I am a recent grad and I joined e&y in their valuation and business modelling (Canada) group as an quantitative analyst.

I was wondering what sort of exit opportunity exist after staying here for few years? I am definitely trying to go bak to mba after this.

Thanks!

 
Best Response

Are you in the valuations group, or the business modelling group? The two very different teams... There's also a big difference between general valuations and the derivatives valuation team.

General Valuations -> Boutique PE, Speciality Valuations Shop, Boutique Bank - Everything but the speciality valuations shop may be a stretch though, it's a tough market right now. On paper, it seems like valuations would be a natural stepping stone, but it's tough to go from Purchase Price Allocations or Goodwill valuations to Merger and LBO modelling.

Derivatives Valuation - Reasonable shot at a structuring/product role at a bank, quant hedge fund (stretch) or trading. You'll know swaps, warrants, options and other instruments inside and out.

Business Modelling -> Corporate Planning/Operations Budgeting, Fundamental ER (if you had decent industry exposure). I interviewed with this group and got the feeling that it's a crapshoot in terms of projects. You might get something interesting - like projecting the success of a certain product given a variety of inputs... or you might be asked to build a model that estimates the number of widgets in inventory based on today's chance for rain. What you will know hands down though is Excel, VBA and Access - never bad skills to have.

In terms of the MBA - you should have no problem getting into a top Canadian MBA from EY (Western/Rotman) but competition's definitely far steeper for an M7 or Top 10.

 

Assuming it's valuations and business modeling like comps/precedents, DCF, LBOs, etc. then exit opps could be banking in Canada, either a boutique or if you're lucky a Big 6. Since you'd be a lateral hire, it really just depends on your luck, timing/what's available, how hard you network and who else you're competing with for each position. Nice thing about Canada is that it's got a more positive outlook on people from Big 4 than US does. PE is much harder because there is no shortage of bankers and consultants looking to go in - and the Canadian PE market is quite small (there's only a few big players for large deals - the pension funds & Onex, and a small handful of mid-markets, and this pool has shrunk over the years).

MBA - you should be able to get into a good Canadian MBA program if that's what you're gunning for.

 

I am actually in a derivative valuations team (I have quant background) but I can be part of business valuation team (need to be trained here tho) as well when there is no engagement in the derivative side. I guess the opportunity for e&y is decent at least within Canada. Thank you for both of you =]

Any other comments maybe regarding the derivative valuations?

 

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