Summer: Boutique IB vs Non Big 4 FDD

Hi all,

I've read through the threads on here from others who were in similar situations but wanted to post my own as well as it seems a bit different. I've recently received two SA offers and am torn on which one to accept and only have a few days to decide. Ultimate goal would be to end up in IB (or a large accounting firm's CF arm, or hell even TAS if I enjoy it), I'm not a Goldman or bust type of person.

Background:

  • Canada
  • Final year of undergrad, non-target accounting major
  • B4 audit internship
  • Top Canadian bank DCM internship

Offer 1:
Boutique M&A/Advisory shop
- Small boutique w/ 2 MDs and maybe 3-4 other empoyees
- Unlikely to offer FT employment
- Seem to be doing typical new analyst work (pitchbooks, research, some modeling, outbound calling trying to drum up leads)
- Shop seems to have solid deal flow/mandates
- Pay is just over half of Offer 2
- Hours: 9-5

Offer 2:
Top 8 professional services firm (think BDO/MNP/CB/Crowe)
- Although not B4, still a decent brand name
- Stronger chance at FT employment, although still not guaranteed
- Financial Due Diligence within Transaction Services, so looking at normalizing EBITDA and assessing quality of earnings. Experience likely not as robust as Offer 1 IMO but hard to tell beforehand. May also have opportunity to work on M&A/Equity/Debt issuances here as Corporate Finance and Transaction Services are grouped together and occasionally share resources
- Pay is almost double Offer 1
- Hours: 9-7:30 or so should be norm

I left my B4 audit internship a year ago with the hopes of pursuing the IB dream, but coming from a non-target with a mediocre (3.5) GPA I know the odds are stacked against me. I was able to land DCM at a top Canadian bank which has surely helped open many doors, but I'm not sure that will be enough.

I figure that for IBD, Offer 1 may be more relevant. That being said, Offer 2 is still relevant (I see many people in Canada move from TS -> IB) and it seems a bit safer in the sense that larger firms typically have the resources to hire their interns on for FT. I know many people would kill for TS and I think that I could be happy there (assuming the work is enjoyable) at least for a few years before trying to jump into the CF arm of an accounting firm or heading for an MBA if I still desire IB down the road.

Sorry for the long post but any advice is appreciated.
Part of me wants to take the boutique and keep pursuing IB for FT but the other part of me wants to be a bit more realistic and risk-averse and take TS.

TL;DR

  • Final year accounting student at non-target with meh GPA
  • Big 4 audit and top Canadian bank DCM Internship
  • Offer 1: IB Boutique, less pay, less hours, but seems like typical analyst role. Small shop so no chance of FT offer
  • Offer 2: Top 8 firm transaction advisory (FDD mostly, but with a little CF maybe), assuming decent shot at FT return offer
  • Ultimate goal would be to end up in IB (or a large accounting firm's CF arm, or hell even TAS if I enjoy it), not a Goldman or bust type of person
  • Not sure if taking boutique and continuing to fight the uphill battle for FT is worth it compared to taking TS and hopefully converting to FT and staying there for some time
 

Well I mean I'm still a student, and unfortunately not coming from a wealthy background or anything. While getting into MM IB would be a dream come true I feel like I need to be realistic at the same time. I attended a non-target, became interested late, and I'm simply not sure I'll be able to pull it off if I'm graduating in less than a year. That's why I'm hesitant to accept the boutique offer. The FDD offer seems like it's still relevant to IB and I see many make the switch down the line. It certainly seems like the "safer" option.

Still would be delighted to hear others' opinions!

 
Best Response

If its one thing I've learned in my very limited finance career as a student, it's that the people you work with is very important (literally trumps everything else). Tbh I think the first offer at the Boutique M&A shop would be a better fit for you given your goals and the learning experience. In my opinion a boutique M&A IB summer internship to FT IBD at top firm is an easier story to sell vs Big4 to FT IBD. Both will put you in a good position for FT recruiting though.

Questions I would be asking if I were in your position:

What is the background of the MDs at the boutique M&A and deal flow like? That will be especially important if they don't offer you a FT spot. They can recommend you to their buddies at other firms if you do a good job.

How did you like the people you met when interviewing?

Where did past interns place for FT? Trying talking to them to learn more about firm culture and how supportive the MDs were for helping them place somewhere for FT.

Where are their offices located? The closer to the financial centre the better for networking purposes.

Pay and hours shouldn't really factor into your decision in my opinion. Go where you think you will get the best experience and will position you best for FT IB recruiting. Based on your description, FT return offer is quite uncertain at both firms so you should make your decision as if you will be going through FT recruiting in the fall. Best of luck!

 

Good point - the background of the guys running the boutique is actually not that traditional, they aren't former MDs at BBs, but rather just a couple guys who went to BSchool together and decided to start up their own advisory shop. They do seem to have many mandates though, so I wouldn't be worried about a lack of work. Lack of connections however is probably much more likely and something I haven't thought of beforehand.

I've tried searching on Linkedin but have only found one intern. I'll reach out to him to see how he's doing now and what he thought of the XP. Hopefully he responds in time.

The office location - that's actually something I'm a bit worried about. The boutique is actually a 10 minute subway ride from the downtown core whereas the other offer is right downtown. That would tack on an automatic minimum 20 minute time on any coffees with bankers I try to get throughout the summer. I probably wouldn't be able to "just step out for 15 minutes" from the boutique.

I agree with you, pay is not a huge factor but nice to have. Good point about the uncertainty of FT. Problem is I feel like the boutique makes me look better for banking roles whereas the other one makes me look better for almost every other role (brand recognition). Add on the difficulty of networking because of the locations and I'm not sure which is really better.

Great post though, brought up a few good points I hadn't thought of before.

 

I've had multiple friends make similar decisions to yours. I'm lucky I never had a choice, but as a sort of analog I did something similar to your option 1, while a good friend of mine did option 2. We both ended up at the same BB, but I'd say I had a much better and more relevant experience and was able to get a better group during group selection. However this was for sophomore and not junior summer -- since this is your last summer internship, you really have to be sure you can kill it at option 1 if you were to pick it.

Just looking at what you described, option 1 is probably a decent place to intern (for IB), but a place where you won't have a ton of resources and cruise to success. You'll have to prove yourself quickly and get useful. They say 9-5 in the description, and they probably expect some minor help, but you got to step up and really take control of your fate there if you want to make it worth the risk. If you go with this one, take advantage of everything you can. Learn from everyone there, and try to get close with a few people. They can help you with your FT search if you tread carefully (ask them if FT is possible there, ask them how they got there and what they'd recommend, naturally lead into intros, etc.). Make sure that you get actual experience. While you may start with bitch work, get it done quickly and reliably and ask to take a look at models, just to understand them. Watch the junior guys work and read on the industry when you're free. I'm rambling now, my point is that you should live and breathe this job for a summer if you take this option.

Take option 2 if you're unsure you can give your 100% while also juggling FT recruiting. As you said, it's an enviable position to have, and you'll be able to make a living if you play your cards right.

 

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