Let's see..to bank or not to bank, that is the question (discussion regarding boutiques vs. corp dev)
Here's something I'm wondering..
Assume we have a boutique that has middle market deal flow..M&A and everything else. We also have a corp dev/strategy analyst program where u can work on M&A, internal operations, planning for the future, etc.
In the boutique, u don't have these presentation centers or research assistants that can help u look up facts/edit pitchbooks. You probably won't get the large bonuses that top banks pay, u get about half of the bonus. Chances are you won't get into a notable mm pe shop or even have a shot for a decent hedge fund against the kids from bb's.
Also, if one or two of the top MD's decide to leave/retire, the bank/partnership would have to dissolve. You may be left with no job and have to start the networking process all over again except this time around ur not coming from working on billion dollar deals.
But you will be in banking, and over time you can probably get into a good mm bank or fund and be banking in 200,000 around 26.
Now, you're in a corp dev role. Great hours, great ppl, great big name company, great opportunities for international travel. U love it there. free gym and the time to work out there. also, great benefits. And you'll be able to build a career there.
You like the work and find it interesting and in a couple of years, you'll probably in charge of a team/division of the company.
But by the time you are 26, you'll be raking in 80-90K..less than half of what would in banking.
Risk versus return, obviously.
I've been working in the corp dev role for a month and I love it to death. I'm starting to get interviews with banks that have good deal flow but are not well known and don't really have the international opps or the prestige/benefits/perks/bonuses that the bb's have.
..so if the exit ops are not as good, bonuses are not that high (25K instead of 55K), no seamless, black car, presentation center/research assistance, benefits, job security, prestige...then why should I bank?
i know i've made up my decision but wanted to see what thoughts people had on this..
...Whether 'tis nobler in the mind to suffer The slings and arrows of an outraged associate, Or to accept one’s lot in life, Be that what it may be? To bank: to sleep; No more than 30 hours a week... The Friday night booze-up the only succour From the thousands natural shocks the eardrum is heir to, 'tis a consummation Devoutly to be wish'd. To bank, to earn; To bank: perchance a bumper MD bonus: ay, there's the rub; For to that Bank what analysts may come And how many will shuffle off their career track, Before they reach the hallowed halls Of the executive suites; For who would bear the whips and scorns of time, The oppressor's wrong, the proud man's contumely, The pangs of despised love, the law's delay, The insolence of office and the spurns That patient merit of the unworthy takes, When he himself might his quietus make Working for a non-profit? who would fardels bear, To grunt and sweat under a weary life, But that the dread of something after analyst servitude, The undiscover'd country from whose bourn No traveller returns in anything other than a Maybach, puzzles the will And makes us rather bear those ills we have Than fly to others that we know not of? Thus conscience does make cowards of us all; And thus the native hue of resolution Is sicklied o'ER with the pale cast of thought, And enterprises of great pith and moment With this regard their currents turn awry, And lose the name of action.--Soft I now! I clearly have too much time On my hands. Back to work!
if you decide to go to b-school, i think the "name value" of the corp development job will help you land BB jobs more easily than some unknown boutique (i'm assuming it's not Evercore/Lazard/Greenhill/etc.).
also during interviews, you won't have to explain why you left banking to get back into banking. it's so much easier to play the "i want to try banking out" story.
i have friends at very small boutiques (no name firms started by 1-2 guys and have some pretty obscure names). they are trying to leave, but can't get to BB's. the boutiques also don't carry the same name value as working at a fortune 500 corp dev job.
bottom line: one position (the corp dev job) looks like you were really interested in it and turned down other jobs (i.e. - you had a choice). the other job (boutique) looks like you tried for BB's, but failed, so went with your 2nd, 3rd option.
my two cents.
leverage corp dev intop top 4 Biz school ----> BB banking, making ~250K at 26 (assuming you work 3 years corp dev, 2 years biz school)
I'm sure you probably don't want to say what company you work for in corp dev, but could you possibly give the names of a few companies that have programs like that? Perhaps other ones you considered? Or you could PM me and tell me; I'm really interested in corp dev roles.
^I'd be interested in hearing the response as well.
Daniel: Would you mind sharing a little about how you got into this corp dev role?
Let me be very serious here. You will NEVER...NEVER say that you love your job to death as a banker.
NEVER.
Stay where you are, you'll go farther.
I did one year of IB at a BB. 90% of my team got cut..all first year analysts were let go. Some third years weren't promoted. Second years were leaving anyway, summer interns were coming in and the incoming first years were in training.
I enjoyed working in banking. I was meeting clients, learning finance, business and enjoyed the alot of the little perks that came along with it. I felt I had job security, great exit options, and knew that even in a bad year and if I was bottom bucket, my bonus would still be around ~$40K. After I lost my "brass ring", I went after boutiques/PE/HF and everytime I left the interview, there'd be somebody there from my team or another bb.
I soon realized after getting a few offers that even though the bank was known for working on upper middle market deals, they were dependent on about 2-3 top bankers who formed a partnership. If one left, the partnership would dissolve and the bank would have to reorganize. then if they decided to do something else, they'd pay me one month's severance and say good bye. Seamless and black cars aren't that big of a deal, but they are nice to have. So without all these little perks, lack of job security, and maybe a 25K bonus. It just didn't make sense.
Anyway, I got into corp dev because I entered a financial analyst program. I met with all the heads of finance (treasury, corp dev, audit, etc.) and the corp dev manager liked me and saw that I worked on a lot of M&A. Got the offer and accepted. I initially got the interview because I had a friend who worked on wall street in research/capital markets at a regional bank/not a boutique and he got me an interview. A bulge bracket bank opened up doors for me.
The team loves me, and I love the team. Great perks and a great life. If you want to get into strategy, M&A, etc. Enter a financial analyst rotational program if you don't have a year of banking. You might not get right into corp dev but u'll be able to just work, meet people, and then they'll rotate u to where you want to be.
Some companies that have this for undergrads are--
J&J IBM Verizon Wireless Merck numerous consumer companies investment banks as well (although I would recommend staying away from them since they are laying people off left and right, operations analysts have been getting cut as well).
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