Is IB a realistic option for me?
I am 33 and have worked in the UK for 5 years in IT, in software development and management. I have a master's degree in computer science and I am finishing my MBA from a top5 UK b-school. I haven't got any consulting experience and the companies I have worked for were relatively small.
How realistic is for me to get into IB such as M&A in terms of my background and experience?
My own judgement is "not at all" based on my research and interaction with other people in the b-school, I am just looking for people's opinions.
Why do you even want to do IB...
With you experience and the degree, go for a job at Silicon Valley. You will have better hours, better pay there.
exactly.
The U.S. pays a fat premium for tech employees, and living there can be a lot cheaper than London.
Everyone is different, so what are you looking for in terms of compensation?
In the UK, full-time developers can go up to 100k pounds, bonus included, if you work in a top tier bank and you are a master in your stuff. Very optimistically I can see this figure going to 120k. Contractors can earn up to 700/day that sums up roughly at 182k/year which is not bad, but on this number (700) you will have to deduct several agency commission, 25%, umbrella company commission, maybe your accountant's too etc. So it rounds down to 500/day which is 130k/year.
Now for IB from what I read is at VP level to say JP Morgan, you can get a 100k / year but bonuses are 50% of that. And you also have headroom above VP if you want to grow. Correct me if I'm wrong.
M&A on the other hand, I think you get commission on the deal as well? Not sure about this, this might only be for PE and VC.
The average developer salary in SF is 90k pounds not counting bonuses, perks, deferred compensation etc. Glassdoor tracks tech salaries really well, so you can get a good idea what they pay.
Just realized I didn't answer the question. I want to be able to make 200k/year on some point in my mid-40s, obviously more if I can. I understand this is not an ordinary salary, and some people might say that entrepreneurship is the only way to do so.
I too entered IB in my 30s (no finance major/degree though). IB is very demanding and requires long hours of dedicated effort.
If you are good in technology/software development, explore starting your own firm. Over the span of 10 years, you will make more money than in IB
What is your background? Did you apply and get accepted? At which level?
I know very well from my family that hard work will earn you big money and that miracles don't exist. Well maybe if you win the lottery. A family member was a doctor and on call for many years, so no weekends, no bank holidays etc...plus 15 hours/day surgery. Big money yes, but also personal sacrifice. That is a given. However, there are industries that you might dedicate 12 hours a day and still not be compensated for your work, or not progressing to anywhere. I'd like to avoid these two. IT is somewhere in between, depending on the company you work for and the place. Nevertheless, I've heard that due to the intense competition in IB, the majority of people (say 80%) never get to earn big money whilst working their asses off, is that true?
Which industry does not have competition? Which job is easy to make money? Tell me one job that does not have risk in it? Why do you think Bankers are paid so high?
If money is the only motive to join IB, I strongly recommend to think over it again. There is intense pressure on closing deals; no IB firm can afford to keep teams alive until and unless there is enough deal flow to cover up their cost (if not their profit). This applies across all IB firms - boutique to BB. I'm sorry to be so upfront, but I'm letting you know the other side of the game. So, be realistic, learn the game, understand the business, and go forward.
IB is my passion and love since my college days. I was compelled to choose other career path because of my financial conditions (I couldn't afford to go to Top B-Schools because of financial constraints). So, I worked in IT for few years, stabilized myself and came back to the place where I always wanted to be. Today, I'm a banker - M&A and fund raising. I've slogged my ass out to come up to this stage. It was much harder for me because I'm not a finance major.
Deals at BB, especially which have dedicated IBD, are complex, high value transactions. If you get a chance to work on one of these billion dollar deals, you will learn tremendously and gain experience, which will be an asset for your life. But if you get bogged down with numbers, long hours, excel-sheet and PPT, information memorandum, client interaction at odd hours, ruthless competition, then things might not work very well for you.
There are ample amount of discussions in this forum which speaks about the life of a Banker. I suggest to read them so that you are aware of the facts. Since you have graduated from top 5 B-school, you might want to explore more options before taking up your job. If your passion lies in IT, stay there and climb up the ladder. It'll be much easier for you to grow and make money in your field. (Making a career shift, learning and understanding a new business and then climbing up the ladder will take time)
You need to love what you do. As Amazon's CEO, Jeff Bezos, says "Follow your heart, not your head"
Good luck!
Surprised nobody has mentioned the idea of him becoming a quant? Is it because of his age?
Question still unanswered.
Why don't you just start by applying for summer associate positions and networking?
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