How is McKinsey corporate finance different from IBD?

firefighter's picture
Rank: King Kong | 1,039

Check out the description - sounds exactly like IBD to me (it's not even cultural integration or strategy, they specifically mention due diligence, valuation, negotiations with bidders/targets on value, etc.)

http://corporatefinance.McKinsey.com/aboutus/ourap...
"We assisted an industrial conglomerate in evaluating the benefits, structural formats and process alternatives of the potential divestiture of a large underperforming division. Our work involved sum-of-parts valuation, compilation of a Confidential Information memorandum, disposal process design, and negotiation support."

Comments (17)

Feb 26, 2011

its the same shit, but they get paid less and work less. mostly ex-bankers who are fed up with the hours but still want to do corporate finance.

Feb 26, 2011

Bankers collect higher fees than consultants - this is McKinsey's attempt to get paid more - they have been at it for about a decade without real success

Feb 26, 2011

i'm pretty sure this is similar across similar firms and the Big 4- Deloitte, KPMG, PwC etc all have the same corporate finance as well.

Feb 26, 2011

So it is basically IBD? I never see them on the league table though, while I have seen Deloitte KMPG etc.

Feb 27, 2011

There is a very very big gap in terms of people quality between McK and the big 4

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Feb 27, 2011

In what way?

Feb 27, 2011

McKinsey guys are on par (if not higher) in terms of credentials, grades, etc. than guys at Goldman Sachs, while Big 4 tends to hire solid kids from state schools. But does anyone here know what McK Corpfin is and how is it different from IBD? It can't be IBD because it doesn't appear on league tables while KMPG corp fin M&A, Ernst & Young corp fin M&A, etc. are on the middle market tables

Feb 27, 2011

McKinsey CF is far from IBD

they are usually hired by the client, PE firms, sometimes banks to work on due diligence, JV, M&A, etc topics

so basically they are still consultants that charge a fix fee (not as a % of deal size) but they work mostly on corporate finance related topics as opposed to marketing, strategy, operations

Feb 27, 2011

but that type of work - negotiation on M&A deals, valuation, etc. from a corpfin standpoint - isn't that what IBD is? I'd imagine an M&A shop providing the same services

Feb 27, 2011

So you only have interviews at these companies. Why don't you worry about making the decision about which company to work for after you get the offers instead of right now before you have any offers?

Feb 27, 2011

I have a partner at CF backing me and I am sure that I will be able to get through anyone of those banks (have a pretty good profile and a GS internship with strong recos from MDs)

The way this works is that I will not have too much time to make the choice (less than 2-3 days), so I would like to take a call right now so as to avoid last minute madness.

Feb 27, 2011

I thought HK BBs gave offers already

Feb 27, 2011

depends what your goals are really... Can't go wrong with Mck though.

Feb 27, 2011

of course go with mckinsey if you dont care consulting or banking
otherwise I would take UBS Asia for banking, they are extremely strong in Hong Kong compared to the other banks and ive heard really good things about their internship program

UBS HK > MS > JP > GS > LEH in Asia Pacific region

Feb 27, 2011

is JP really better than GS in Asia?

Feb 27, 2011
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