M&As and underwriting/IPOs- usually separate in BBank? Best bonuses/exit opp?

Are the mergers and acquisitions divisions of a bulge bank usually separate from its underwriting/IPOs in the investment banking division?? which would be a better way to exit to private equity/hedge funds ? what are the bonus differences for these divisions (which usually brings in more revenue IPOs or M&As) do some banks keep the analysts doing both while some have it separate?

all information is appreciated. Thanks.

8 Comments
 

M&A is different from ECM/DCM which are underwriting units for a bank.DCM and ECM have no exit opportunities to hedge funds or private equity firms because a) You don't have trading experience b) You don't have valuation/financial modeling experience. DCM and ECM are very client oriented jobs. Bonuses are almost the same in both fields at most levels. DCM investment grade brings in very low revenues compared to the high yield issues. I'm not so sure about IPOs but I guess the harder the deal, the more you can expect to bring in. The hours are usually better in ECM and DCM. If your intentions are to work at a hedge fund or private equity firm, then I suggest you steer clear of DCM/ECM.

 

Jesus, can you wait more than 30 minutes before posting again?

  1. Yes, separate.
  2. M&A provides better exit opportunities.
  3. Given how few IPO's have been completed this year, obviously compensation was and should continue to be down in this division.
  4. No, separate.
 

then why do i always hear of IBD analysts working on pitchbooks for IPOs & M&As in a usual "life of an analyst" ? you are telling me that it is not realistic to be exposed to both as an analyst?

 

Teams are divided into product (M&a, ecm, dcm) and sector (fig, gig, o&g) teams. The sector teams usually work on pretty much all aspects of m&a and ecm. So, a guy in fig could be working on an ipo and a pitchbook at the same time. Whereas the product teams solely specialise in their product.

Also, if the exit opportunities and compensation are lower in ecm and dcm, then why are they such popular areas? Are hours that much better? thanks.

Just my 2c.

__________ Just my 2c.
 
Best Response

I guess I should have elaborated more.

Investment banking divisions are divided into product groups and industry groups.

Product groups are for example, M&A, equity capital markets, debt capital markets, etc. These are separate divisions.

Industry groups are for example, consumer/retail, healthcare, tech, etc. Bankers in these groups may work on M&A or IPO transactions. However, lots of the more analytical work is given to product groups for these specific transactions. This differs from office to office. Some regional offices pride themselves on their strength in all these areas of expertise and give analysts the opportunity to do work on both M&A and IPOs. From my experience, my group always gave the bulk of work on IPO's to the New York office focusing on these types of transactions.

 

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