GS/MS/JPM vs. MBB

Got return offer from IB and got a FT offer at MBB. Leaning towards MBB as I find the work to be more interesting and the culture seems significantly better as well as the professional development.

Wanted to get thoughts from others who made the switch or worked in both industries. From previous posts seems that most that made the switch liked it better, but wanted to get an updated take today.


 

Assuming you're a college grad, I'll probably take the MBB offer since the exit opps are so diverse. I know a handful of post undergrad bankers at the firms you listed, I can probably bet money the majority of them would have taken MBB > top BBs.

Post MBA? I probably would take IB just because it seems easier to land and has more specific exit opps (easier to predict where you career goes). Easier to pay off loans too since staying at a firm for 1.5-2.5 years could pay off all your debt and you can exit to jobs (if you're burnout) where you may have not gotten looks without a MBA

 
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I've worked in both and prefer top IB.

WLB - I've found the toll on social life is similar, but personal life IB is superior - my girlfriend was very lonely at home during the week while I was on the road in consulting whereas now (wife today) she finds it easier when we cross paths for an hour or so before bed on most weeknights. I only go out on weekends so the difference there is pretty negligible if you're into bars and beers. Family for holidays are usually similarly respected (some work requests but some good time off when it counts). I've gotten some hideous requests in both. Can you guess in which job my project manager called and asked me to update a slide deck at 2am on a Thursday for an 8am Friday meeting? A: both.

Intellectual - I find them to both be interesting. Lots of consulting assignments are boring af and you get like 20% interesting ones that define the career. In banking I've actually found a similar spread - you spread the same comps 100 times for BD work then get to work on a really interesting merger mandate. The similarity of the work is actually super super high.

Pay - in both jobs you're making slide decks and putting together excel models. Is there any incremental level of "interesting" that can make up for MBB paying like 60% of IB? I dunno. Refer to point above - I found them kind of similar tbh and you'll enjoy learning through both tracks.

Toll on me - I found it easier to work an extra 10 hours a week in IB from the office than to spend those 10 hours traveling and grinding through airports and time zones. Plus when I had free time in consulting I was totally wrecked at some Marriott in some random city so its not like I got anything out of slightly more free time besides some extra TV.

Long term - nothing is more depressing than a consulting partner on their 4th spouse who can't pick their kid out of a lineup still grinding out 150k miles a year selling projects for a 1/3 the comp of a similarly qualified banker. I always felt like I was in "sell mode" in consulting and even project execution and deliverables were all about teeing up the next sale which was a turnoff for me. In banking the vibe in market can similarly break your back.

Networking - its easier to gain useful professional relationships in banking. Your clients become your network in consulting and lots of times they are 500mi away and not generally that helpful contacts for day to day life.

Exits - I get more inmails in banking. You said you aren't interested in HF or PE so maybe it doesn't matter but the exits i got approached for in consulting were most often lower middle f500 management roles that I wouldnt consider doing or internal strategy & ops teams at my clients and a couple tech firms. Maybe that sounds more exciting to you than it does to me.

Conclusion - I believe banking is better "for me". That being said you can find an equal number of people who go the other way. One note it seems like an MBB is more willing to hire an ex banker looking to change jobs then the other way around. One great thing about consulting is it teaches you how to handle having no templated career structure and work through assignment ambiguity. That being said MBB does a much better job of marketing their work to students by making it appear more interesting then it really is, whereas banks tend to be upfront that a lot of the work is a grind. They are virtually indistinguishable from each other day to day. My banking bonus had me convinced they made a big error in my favor whereas consulting bonus season was always a super, super big let down.

This got you depressed about corporate life enough?

 

Adding my own $0.02 having been both to MBB (~3 years) and Top BB (1+ year). 

MBB Pros

  1. The power of the brand in your resume is insane
  2. Definitely a great place to start a career. Made me a more polished professional, taught me clear and concise communication, how to break down and solve difficult problems, how to deal with tough clients, gave me exposure to multiple industries, geographies and types of work
  3. People are also really bright and smart so an amazing environment to be in
  4. If you don't mind the travel (which some people actually prefer), it can be lots of fun. Also has lots of training and focus on development
  5. If you like it and want to stay they'll pay for your MBA
  6. Wider range of exits

MBB Cons

  1. Sometimes you spend 6+ months on a single project / client that is not interesting and you're honestly not learning anything (but lifestyle in these long, boring projects will usually be good)
  2. After a couple years I felt my learning / development stalled, and I particularly lacked hard skills (e.g., a lot of consulting for me was presentations without a lot of hard analysis to back-up), being a generalist I also never developed marketable knowledge of an industry 
  3. I didn't feel inspired by the big picture of my projects. A lot of cost-cutting or narrow-focus strategic initiative (e.g., launching a new brand) vs. in banking where it's a much broader, higher impact decision

Top BB Pros

  1. A lot more reps, you're forced to learn much faster given you work at multiple deal at the same time
  2. You get paid better
  3. You get to focus on an industry and develop industry-specific marketable skills
  4. You learn a lot more hard skills such as modeling, capital markets, accounting, etc. while still learning a lot of the soft skills from consulting
  5. Helps you get into the buyside if you're interested in that. Much harder from the consulting path. From consulting you're probably need to work on a lot of "due diligence" projects to gain relevant experience and your lifestyle on those can be worse than banking
  6. You travel a lot less, and in my experiencing traveling so often for work can be exhausting and stressful (but also fun sometimes)

Top BB Cons

  1. Unpredictability, you will end up having to change personal plans here and there, consulting is much more predictable and lifestyle-oriented
  2. The best exits are finance-focused so you technically lose our on a lot of other cool jobs
  3. A lot more process as part of your day-to-day and a lot less "creative" work. I don't see this as a major negative because I still get to "problem-solve" a lot and I actually enjoy running a process through the finish line. But agree most would see as a negative
  4. From talking to friends and reading this blog, people can be less caring, less inspiring and less fun to work with. I was lucky to join a group / bank where I admire the people a lot more than I did in my MBB job though
 

I'm sure you can, and yes there's still a lot of resources available + formal training happening. From what I saw though, you end up working with the same seniors after a while (you like them, they like you), and therefore having some projects that are similar to each other, etc. Like in any job, if you actively look for better projects and actively seek resources to learn you will still grow for your entire career. 

 

Great summary. I specifically appreciate Point 2 of MBB Pros. Brother was a MBBer (eventually became a CEO and now has his own consulting practice exclusively advising the C- suite within his vertical). He would describe the first two yrs of MBB as "Business Bootcamp". Probably nowhere else in business will you get exposed to and deal with senior executives at such an early stage in your career. That experience is invaluable. All the technical stuff aside (which is easily learned in either IB or MBB), nothing replaces the client facing, discovery, presenting and overall relationship building / network with major wheels. As an example, his first job after MBB was as President of a start up Co within the umbrella of a F100. The parent Co was a client. He was at MBB for 5 yrs and left as an Engagement Manager. Not only did his new job report directly tot he CEO / Board, he had had five yrs of experience speaking to CEOs and Boards. That's really important UNLESS you want to strictly be in an investor at a fund (Mutual, PE, Hedge). You would also have an interesting potential in the PE Portco Operating space (think Turnaround specialist where you improve performance and sell, rinse and repeat)

I would get really clear on your interests. It's OK to not know specifically what you want to do but drill down on what you find appealing, of interest, are passionate about, etc. Let that be your guide.

 

Can you elaborate on MBB pros #1 and cons #2?  How specifically did the brand help you outside of the perceived prestige factor?  Were you getting a lot of recruiter reach outs or something?

For cons #2, where did the analysis come from then?  Do you mean you weren’t doing a lot of excel work or something else?  What hard skills are you referring to?

 

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