Thoughts on below average starting offer: non-target

Dodd-Frank's picture
Rank: Monkey | 47

Basically I am wondering what your thoughts are on my situation. I went to a non-target and did not go hard enough to get a prestigious offer. I've been focusing on IB the last two years and it's what I am set on pursuing. My offer while appreciated is not as great as the BB or EB salaries I have seen on this site for the past two years so it's a little disappointing. Do you think I can start a IB career with this position and maybe it will help me get the experience I need to continue advancing in the IB career path?

The position is Business Development Research Analyst. Entry level for M&A advisory.

Small firm rural location- less than 15 partners/full time.

Primarily responsibilities: qualifying potential targets through qualitative research for buy side and strategic clients. **Secondary responsibilities: **follow up on spin off opportunities, source potential buyers, initiate discussions and draw up agreements.

Responsibilities: Create target lists, prepare marketing material, status reports, and maintain client database.

Rate of pay: $600 per week, no medical/retirement
Hours: 40 per week Mon-Fri
Bonus & Commission: 1% of firm's gross sales, bonuses given at owner's discretion.

Also do you think it would be possible for a first year to complete a spin off in their first year on the job?

Comments (7)

Dec 13, 2018

I wouldn't take it if I were you, would try for something better and use that as last resort. You don't want to be working your ass of =f for next to nothing.

Array

    • 1
Most Helpful
Dec 13, 2018

Sounds like a pretty poor job.

No medical and 401k? And less than $30k salary? I'd pass

    • 3
Dec 17, 2018

Yeah, it is a pretty rough start for pursuing the career. I hope it turns out better than it sounds. No other firm offers so I will be accepting.

Dec 14, 2018

Is it a full-time position or an off-cycle internship? It doesn't sound like a full-time offer to me. That said what are your other options? If you don't have any then take it and work there while looking for something else.

    • 1
Dec 17, 2018

Are you still in school? What's your opportunity cost here?

From a pure financial perspective -

If you're still in school - then weigh the risks of reneging (how well connected are the partners, is the firm in the city you want to work in) from now until the start date.

If you're unemployed right now (or employed in some part-time capacity) - take it and actively look for better avenues so you can at least start earning some money. $600/week working 40 hours (if you're actually working 40 hours, that is) is bad, but it's not that bad. For reference, in my city, with lower-end boutiques - base is usually 60-65 with 5-10 bonus working ~65-75 hours. Ends up being $19/hr, which is only a little more than the $15/hr you'd be earning here. At the same time, recognize that this $15/hr or anything even under $20/hr I would say is bush-league/intern pay.

From a career perspective -

I'm more concerned about your "responsibilities." To be honest, this doesn't seem like IB. It sounds like BO/admin- work for some matchmakers. No mention of quant work/skill development, no mention of program (Excel/PP) usage, just...memo creation, note-taking, and database filtering?

Seriously, I look at what you've written as "the primary responsibility", which in layman's terms, seems to be just going on CapIQ/Google/Pitchbook and summarizing what other people have written; similarly, "secondary responsibilities" can otherwise be interpreted as cold-calling and/or setting up phone chats for partners at your firm via e-mail.

How accretive is this to you really? No brand name, no recognizable job title (not even classified as an "investment banking analyst"), no relevant skills being developed. Not trying to be a sour cat here at all, but generally, when you're trying to build up a resume (and sacrifice some combination of time & money in the process, for instance: working unpaid as a sophomore), a tradeoff between prestige and job relevancy emerges. For example, doing PWM at a BB like GS - recognizable name that stands out on paper - but not exactly corporate finance. Or, on the other end of the spectrum, working at a no-name shop but doing exactly what you would be doing at a BB in a comparable role - just on a smaller scale usually.

To me, this is neither.

Array

    • 2
Dec 17, 2018

Thanks for your reply Juan! Can I DM you the company website and you can tell me what you think?

Also, I am about to graduate in less than a week, so this would be my first full time in M&A.

Dec 18, 2018
Comment

Array