Hey guys
Was reflecting on my experience in IBD with a couple of other analysts from my team when we touched upon a topic that we all couldnt agree on.
If an analyst makes a mistake in a model (doesn’t move valuation by much) but an associate doesnt catch it and an analyst fixes it an evening before the client meeting, gives the model back to the associate who then for whatever reason decides that it's too late to fix outputs in a presentation - who gets the blame?
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Associate.
They are responsible for the work product, the analyst is a glorified monkey who does the gruntwork. If they could replace you with an auto-model/deck generating program and algorithm, they would.
At the end of the day, the client will hold the MD responsible, who will hold the VP (as deal manager) responsible, who will hold the Associate responsible. Maybe if your associate is a POS they will try to shift the blame but at the end of the day they will look like an asshole to a good VP.
Agree. Although analyst blew up associate by not getting right first time and slipping an update in last minute, associate should have blown the deadline and sent over right numbers. That's a major party foul that associate knowingly sent across busted #'s. Although you could defend yourself saying the analyst totally butt f'd team by making a model change after the final turn and you made a judgement call that not delaying sending out materials to client was less worse decision and follow-up with a correction afterwards. Still will get chewed out however.
Literally have never heard of this being the case unless it was ~1 hour until the meeting. With that said, as other posters have mentioned it would, in my opinion, fall on the associate who should have been checking the model / pitch
Now you have I guess.
One of us worked with somebody more senior once who went out the day before the pitch (had some sort of commitment outside work).
Received revised model in the evening before the pitch but said that it was too late to change things.
If you manage to sell your clients business for 5% more then surely no mistake has been made :-)?
It is your associates fault. If he tries to blame you (since you brought it to his attention beforehand) he is an asshole and hopefully you have a decent VP who sees through his bullshit.
Not so fun story from when I was a first year analyst... this probably isn't the right thread for this but for some reason the OP question made me think of it...
So a few years back, I am staffed on a pitch where we are presenting to a big client the day after my birthday. Lucky for me, we finished up all of the materials early the day before even with enough time for one of the MDs to take the materials with him before he left the office. I was absolutely shocked and stoked that I was actually going to get to celebrate my birthday because I wasn't traveling to the pitch.
I go out with some of the guys to celebrate ... and a few hours later get a call from the associate on the deal. The first time the phone rings, I have the balls to ignore the call but my phone immediately rings again and decide that I better pick it up. Long story short, there is an error in the LBO output that the VP on the deal caught as he was reviewing the deck at his hotel and the conference call me to explain the error / tell me the game plan. I am meeting up with a girl literally as my phone started ringing and tell her that I have to head back to the office... no birthday fun for me. I get back into the office and silver lining is that it is no longer my birthday, find my mistake (might have taken 5 minutes to fix) reprint all the deck, bind, flip, package and Uber out to the MD's home that didn't fly out until the morning to drop them off.
The Associate and VP call me the next day and just say WTF! I can feel my face turn red as I am trying to figure out what I could have possibly done wrong. It turns out that they didn't know it was my birthday as they worked in different offices and were pissed that I didn't tell. They are awesome guys and said if they had known they would have figured out another way to fix the issue but to me it wouldn't have made a difference, it was my fault so I was going to fix it.
We ended up winning the deal (who knows if my model outputs played any factor), which lead to one of the worst few month stretches of my life (as the deal was a total nightmare) but it jump started that industry group. Further, it helped dramatically with interviews and eventually helped me land my current role in PE. This can be a funny industry sometimes.
sick story, but what happened with the girl? did you get to meet up with her again at some point?
We won the deal and I was lost to the outside world.
Did the Associate and VP vouch for you after the ordeal? Did you get some mad props for being willing to do that and taking one for the team
Damn... props to you man +1SB
Every single IB CIM/MP has some type of error in it, often material errors. Incorrect CAGRs, blatant math errors, stale and irrelevant language from other deals, etc. Don't let it stress you out. This whole obsession with perfection is a rouse. It's bullshit. The buyer doesn't even really care when they spot an error. It's mostly relationship driven.
I actually agree with you for once on this. If time constraints were less rigid and unrealistic, you'd probably see more original creative content and less errors.
You're so fkg right man. As long as client trusts you they will accept. The standard of perfection is a crutch for your insecurity. It took me years from to get from slaving hours on the preso to walking in and closing based on broad numbers. And of course the relationship is based on total integrity. Disclaimer PB not IB, so my numbers could be more broad :D. If u have the big picture in your head the preso is just to show u put in effort.
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