Sourcing a deal as an intern? (Ridiculous I know)
I know this title is absolutely ridiculous but hear me out. A mentor of mine who helped me through recruitment (Senior MD in the PE/AM arm of an EB) called me this morning. He informed me a dear friend of his was looking to do a deal that my BB group would regularly do. It’s our specific industry vertical as well as size. Long story short, my mentor wants me to inform someone of it at my firm.
Here’s the dilemma, i’m going to be an intern in this group this summer. I am not dumb enough to think this wouldn’t be overstepping my boundaries. I am well aware it’s best not to stand out. My main issue here is damage control. I want to help my mentor but at the same time if I was a FT guy and got wind of this I would think this kid is an idiot.
Thoughts?
I take it the senior MD Mentor is not where you are interning? Just ask someone at your firm if this is something that they would look at. No one will think you are a try-hard or conflicted. You're overthinking this.
Appreciate the response. +1 SB. Correct, he is not at the same firm I will be at.
Okay, so I've never done this in IB but I have been the low guy in consulting trying to source an engagement. Here's the thing: they will like it, but they are not going to want to do leg work based on a "hot tip" from an intern. An MD's time is extremely valuable, and they will only want to invest some of it in this deal if they believe it is an actual lead. People only think you're an idiot if you stroll into the MDs office and say: "A friend of mine at JJ says his manager keeps talking about acquiring a small firm in xyz space, you should totally go talk them." The MD will see that as a wild good chase. Instead, if you say "A mentor of mine at [AM firm} contacted me about a close connection of his, the CFO of ABC firm, and told me that they are looking to make [specific type of transaction - include deal type, rough size, market, etc] and are looking for someone to help them with [specific role e.g. debt placement/fairness opinion/whatever]. I know this group does a lot of that specific type of work and my mentor was inquiring whether we might be able to provide a solution. Would you have time this week or next for a phone call with the CFO? I've also sent a few background primers on the players involved for your reference.
This does all the background legwork for the officer, established that this is an actual opportunity and not just some BS you read in FT, and makes it so you are the connector of the meeting. All you are asking for is a quick call with a potential lead, to whom you can make an introduction.
So, what should you do?
Run background DD on this lead. Understand what they are trying to do, the players, the rough size of the deal, everything you can think of
Reach out to an Associate contact at that firm, or at least a senior analyst and lay out everything, including the information you want to send to the firm officer. See how they think you should play it specifically (for example, if it's a small asset deal, it may be worth going to a VP/director vs. the MD). I would not include the contact information just yet, you want to make sure you still get credit for this.
Follow through from there, make the connections, set up a phone call, and enjoy the fact that you just created a bunch of work for your future colleagues. If it does get this far, make sure you ask what role they would like you to play in the interim (following up with the CFO, etc)
I appreciate the response. +1 SB. I scheduled a call with the CFO early next week to discuss the matter. Do you have any high level question suggestions to ask? I would greatly appreciate it.
You're an intern, who cares. Shoot your shot, but be very thoughtful and forward-looking. What's the worst case scenario: "Remember that intern who tried to source a deal? What an idiot!"
Pretty good worst case. Risk seems symmetrical to the upside.
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