IB associate --> Corp dev?
My plan is to get a top 10 MBA ---> work as an IB associate for 3 years to gain experience ---> then do corporate development, most likely at a high tech company since I have prior computer science experience. How realistic is this? How much could I expect to make in corporate development?
Not sure on salary. It's definitely doable, it's just on you to: -get into the MBA -perform well -get a good IB job -perform well -find the appropriate opportunity and beat all the other candidates for the few coveted positions
It'll be tough, but definitely not impossible.
Not sure of salary, but yes is definitely doable / a very common path (often by choice, but sometimes not by choice..)
Obvious point to call out - it will be easier to land a tech corp dev position if your IB experience is in tech, particularly in the SF bay area (although tech is a huge space / there are clearly other corp dev tech roles available outside of the bay area)
Hope this helps
Corp Dev Associates are low six figure (~110k) salary and maybe half the bonus you'd see in banking. So maybe around 150k all in at a well paying company. Three years post MBA, though, you'll be looking at a more senior role than associate but you'll still have no actual managerial experience so it'll be interesting to see what they do with you. Generally it's hard to get hired into a managerial position unless you have experience managing people or get internally promoted. However your experience would be one of a manager level person which would be more like 180-200k all in.
I'm not sure what is meant by "Corp Dev Associates," but coming out of MBA + 3 years of banking at the associate level would net you, at a minimum, a Manager of Corporate Development position. This would pay somewhere around $125K with $25-35K bonus in cash + stock. It could be possible to come in as a director depending on how much experience you have pre-MBA, which would likely pay $150-175K salary with $40-50K bonus in cash + stock.
You could also go straight into corp dev from MBA into a Sr. Financial Analyst role, which usually pays $80-95K base with bonus widely varied from company to company.
Yeah I was thinking the same thing, MBA + Associate role, you're definitely further up the ladder..
Don't IB Associates manage IB Analysts?? If true, then you will have management experience while working 100 hours a week. Also, the term manager in corporate finance doesn't necesarily mean you have people reporting to you. Business Development at my firm is Sr Managers and Directors, no Senior Analysts.
Ibanking to Corp Dev (Originally Posted: 06/22/2010)
I know if you go from ibanking=> PE, there are a lot of modeling questions
What if you go from ibanking => corp dev at a F500--- Will there be lots of modeling questions?
If I'm in DCM, I'm afraid I can't handle too much modeling questions-- so I'm a bit worried.
Can people that gone from ibanking => corp dev comment on this please?
I know I guy that went to corp dev straight from UG--- the interview wasn't too technical....
Moving from I-Banking to Corp Dev - advice much appreciated (Originally Posted: 06/16/2015)
Client we (I was mandate lead) just did capital raise for wants to hire me to lead their buy and build strategy. Roll-up in a fragmented brick and mortar industry, great management team and PE backing, would work directly with CEO and partner with CFO. Considering, salary is less, but stock options and clear path to liquidity make attractive, as well as a good transition to the buy-side afterwards.
Any thoughts on the move, how what I do (skills) on a daily basis transactionally (sell-side and capital raising) changes?
Anyone have some example financial models, strategy, tools they have used when running a corp dev. program, mostly via acquisition and JV's?
Any input much appreciated
Financial models will be almost the exact same you see in banking. We use a DCF/IRR analysis the majority of the time.
The only difference I would say is that much more time is spent thinking about the drivers of the model and building that out.
Congrats. It depends a lot on each company but you should expect to dedicate more time to corporate strategy (evaluating trends, markets, target analysis/selection, etc.).
Unlike banking which seems fairly structured, you will be expected to learn a lot on-the-go and complete a lot of work independently. In my experience its also culturally very different because it's just you working with fairly senior (older) folks vs. a team of peers.
I have a similar offer. What did you ask for in comp?
How to get mid-level Corp Dev Jobs from IB (Originally Posted: 08/24/2011)
Anyone here have experience interviewing for mid-level corporate development jobs in tech (Sr Manager, Director, etc.) coming straight from IB?
I am aware of a couple of interesting opportunities. I have connections to the groups, and I have been talking back and forth with people in each of them. The one issue that I am finding is that many of them seem to prefer guys with consulting/strategy/prior corp dev experience, even though most of the groups are M&A focused.
What is the best way to convince them that I am a good fit, even though I've only done IB. It seems to me that companies that are looking to do deals should want to hire the guys with the most experience in that area. Plus, I have solid deal experience with directly relevant companies in most cases. Part of my issue may be that the guys I've spoken with have consulting backgrounds themselves.
I've been explaining that since I regularly work with early stage companies that we often help advise them through strategic challenges and play more of a consultative role. That said, I'm not a consultant, I never studied to do McKinsey case interviews (although I may need to start), and I get the feeling that they don't believe my explanation, even though I provide specific examples.
Any ideas on strategies to use to convince these guys that I'm the right hire and have the right skill set?
Thanks! TB
Note that I haven't been dinged from anything yet, and most of the processses haven't even officially started. I'm primarily looking for advice on how best to sell myself in this situation.
Can't offer any advice unfortunately, but might find myself in the same position in the future, so very interested as well.
check out Harvardgrad08's thread on corp dev (if you haven't already)- lot of good info
Thanks for the heads up. I missed that one somehow - great and informative thread. Here it is for anyone else interested in this topic:
Harvardgrad08
Tech, as a 3rd year associate, why are you considering leaving banking? I'm sure there are a lot of people that would be interested in a topic like that.
It's nothing ground breaking really. Mostly, it's because I'm burned out and feel that I'm stagnating; sometimes you just need a change.
I've been in banking for seven years now across two firms, plus a couple before that in an ops/then trading role. I realize that you can always learn more, but my curve has definitely flattened. I'm also tired of playing the role of the middleman without the ability to ever ultimately call the shots. Plus, the erratic hours from being at clients' beck and call never really go away - I'm in my mid-30's and have worked past 2am twice this week with another night past midnight. I want to help drive strategy and build a company over the long run instead of parachuting in for a deal process.
My current firm has good people, and I love the tech sector. If I stay here for awhile longer, it's not the end of the world. I've just come to realize that I'm ready for a new challenge, and there are some attractive ones out there right now (just need to figure out how to land one).
I'm not interested in ever being a partner/MD in banking. My ultimate goal is to start my own tech company, and today I don't feel that I am in the proper place to make that jump. I never planned to stay in banking this long, and I turned down buyside opportunities when I took my current job. My present thinking is that if I don't plan to do this forever, and I'm not stoked every morning when I wake up, why not find something new ASAP?
As a side note for the young guys, just remember that there will ALWAYS be job frustrations and a grass is greener mentality. I had coffee today with the CFO of a decent sized public company. His company is growing, profitable and in a great sector - seemingly a dream job for many people. He spent most of the time talking about his frustrations with investors/employees/the CEO...no matter how high up you go, it never really changes.
like tony sopran said "shit rolls down hill and money goes up"
IB => Corp Dev Advice (Originally Posted: 01/23/2014)
Hi,
I am currently a second year analyst at a super-regional IB and have a lunch tomorrow with a few guys from one of our clients Corp Dev teams. I am seriously considering Corp Dev for my next step for a few reasons: 1) Tired of banking hours (I'm married) 2) I am much more of a "builder" than an "investor" (why I am not interest in PE or HF, etc.) and 3) the culture at this place seems really great.
So fellow monkeys - enlighten me as to what I would be doing in Corp Dev on a daily, weekly, quarterly basis. What is deal sourcing like? What is internal due-dilligence like? Who will I be working / communicating with?
Please save the "well the pay in Corp Dev sucks" and the "Corp Dev for sure has better hours" for another thread. I want to know what Corp Dev (M&A focused) is really like. Feel free to send links and provide book recs.
Thanks in advance for the replies. They are greatly appreciated.
Cheers,
//www.wallstreetoasis.com/forums/the-other-road-corporate-development-associate-fielding-questions
//www.wallstreetoasis.com/forums/corporate-development-personal-experience-advice
... there is plenty of good content on this board. use the search function.
IB --> Corp Dev - Who has done it? (Originally Posted: 08/22/2007)
Doing the analyst thing now, but my goal is to be in corp dev at a small company for the hours and the startup mentality. Has anyone done this? How does this compare? Is it possible to do this after just a 2 year analyst stint, or do most have associate-level backgrounds? Also, are you INCREDIBLY more bored than when you were in IB, or just slightly? (I think I can handle slightly).
This has been asked before, but can anyone ballpark the pay after certain amounts of IB experience?
A lot of people go into corporate development. It is about the same salary, basically no bonus. Hours are much better, but the work is much slower. Some people are bored and go bank to finance, others get an MBA and stick with it. It just depends on what you want.
bump. someone else must have done this or had more insight.
doing corp dev internship right now and talked to a few senior guys at the company (f500). most of them started out in ib, then were hired by one of their clients after 2 years, then went to a larger company or an MBA program. said analyst skills paid off in the corp dev world but the work was definitely slower. however he also said QOL was through the roof compared to ib and that you also got a broader experience, learning more about go-to market strategies, detailed synergies, etc.
depends on what you want to do. corp dev is less straight finance; has more operations and even marketing, which some around here might hate. i personally thought it was pretty interesting. everyone i talked to though said start at ib and then move to corp dev as your finance background is the foundation you need and after you finish your time as an analyst you can build up your knowledge of op's and marketing at a corporation. if you don't want to be doing just dcf models for the next decade and want to get a broader experience with better hours (at the expense of a huge bonus), then go for it.
heck, if you sign on with the right company and get some stock options you can make some serious coin that way. however if you want to get super rich or stay in more straight finance gigs, corp dev isn't for you. you have to stay on the sell side if you want that.
Interesting, thanks for the feedback. Anyone else tested the market straight out of 2 years (or 1) as an analyst?
bump. other input?
IBD to Corp Dev? (Originally Posted: 01/20/2009)
I know most people prefer to go into PE after 2-3 years as an IBD analyst, but what's the story with corp dev for a bigger company (think Google, MSFT, Genentec or other fortune 500s)? How common is the move from banking to corporate M&A? What position would you be offered after doing banking for a couple years, and of course what are the pay, hours and exit opps like?
Any insight?
Since my group is corporate development and strategy, we come from both IB and mgmt. consulting. Myself and several other colleagues were M/B/B-types and we have bankers from places like Citi, ML, etc.
The role is "Senior Analyst", which even though I am pre-MBA, I have the same title as those coming directly from an MBA. We are in the same pay band, but they are at the higher-end of the band and I'm closer to the lower. The base salary is significantly higher than my base in consulting, but there is no bonus in this band, aside from a sizable sign on bonus. I didn't have to move, so no relocation was offered. The hours are not 9-5, but universally less than consulting and therefore IB. And limited travel/no weekends. The MBAs are all ~Top 5.
Of the most recent pre-MBAs directly before me, HBS seems to be the common next step. However, an MBA isn't required for advancement as the next step(2 years + promotion) would put one at post-MBA in both compensation and seniority. As far as I'm aware, this model is the ultimate goal of these types of programs: provide an avenue for external talent to enter in a meaningful capacity with enhanced exposure to senior management and problem-solving and then push them "into the business" after 1.5-3 years. This is how the company plans on building its management bench for the future. That said, in no way is it discouraged to get an MBA.
The ultimate benefits of a role like this are a) lifestyle b) exposure c) getting the perspective of how a business actually works from ground-up/inside vs. top-down consulting or banking. I do think the prestige/notoriety of the company does make a difference. If they are known as a management powerhouse, global leader, etc. than the breadth and depth of exit options will be more apparent than a lesser known or middle of the pack company. Folks have moved to PE from here.
Thanks for the great insight! The lifestyle aspect is definately a plus, but as far as pay is concerned, how big is the drop off from corp dev to PE. I know that after 2-3 years of banking the average PE salary (base + bonus) is usually in the $200k-$300k range. What would a "senior analyst" be looking at yearly? What's the typical base and/or bonus and are there any other forms of compensation offered (stock options, RSUs...etc) at that level?
My background:
Previous: 2 years in management consulting
Currently an analyst at a F500. Other analysts are ex IBD (Goldman, MS, JPM).
Pay vs PE:
None of our analysts get close to the 200-300k comp you would get in PE. Expect a base around 70-90 + 20-30% bonus.
raider4ever: could you please elaborate on the jump from corp dev to PE (how many yrs in corp dev, deal experience, size of PE firm)?
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