Sell-Side Research = 0 Value?

I got a lot of negative comments a few weeks ago when I introduced the idea that the sell side industry as a whole is dying. As I continue to put together my research on this topic, I wanted to get the broader audience consensus regarding sell-side research.

Keeping in mind that I work as a sell-side research associate, my initial thought is that the job does add no value. If I'm a buy-side firm, I would rather have my own research team (which many do now), to ensure unbiased research and do a 'deep dive' into a company or sector that is more comprehensive than typical sell-side bullsh*t.

From a sell-side perspective, if I'm IB, I don't care what my research team is doing because we've got a Chinese Wall between us and I'm looking to do deals one way or another. ST is really the only place that I see value...and that value is really only to keep sales people employed so that they have something to talk to for clients (and from above I think clients are going to go to them less and less).

So...does sell-side research add any value..to anyone?

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)
Start Discussion

Total Avg Compensation

May 2021 Investment Banking

  • Director/MD (9) $911
  • Vice President (35) $364
  • Associates (195) $233
  • 2nd Year Analyst (110) $151
  • Intern/Summer Associate (96) $145
  • 3rd+ Year Analyst (26) $145
  • 1st Year Analyst (404) $131
  • Intern/Summer Analyst (330) $82