Transaction advisory to Corp dev/strat
Background
I've been working in financial due diligence for approximately 2.5 years as an associate, with a year at Big 4, and currently at a middle market advisory firm (HL, A&M, Duff & Phelps, Riveron, etc.) that has a large variable compensation component. Last year, I made ~$110k all-in, and will probably make at least ~$140k-150k this year, due to the generous bonus structure that this firm provides.
I have enjoyed the work, and I do think I have learned a lot, especially from working with so many different clients and Management teams. Lately, however the process of churning out QOE reports has gotten somewhat repetitive and dull, and I know that it is probably not what I want to do for the rest of my life. Yes, the companies vary from deal to deal, but the procedures and scope of work generally remain the same. Not only do I want to take a bigger role in the deal process, but it'd also be nice to be work on something from beginning to end, as opposed to the mercenary nature of advisory.
The positions
As a result, I am currently in the interviewing process for a couple different senior analyst roles. Both of these positions pay around $100k with a 10-15% annual bonus, and merit-based raises.
Corporate strategy at a large telecommunications company - This role would focus on long-term strategic planning, identifying and researching strategic initiatives, and various ad-hoc strategy projects. Frequent presentations to C-suite, with a focus on storytelling. Lots of PowerPoint decks, as opposed to excel models and spreadsheets.
Hybrid corp dev/FP&A role at a large multinational manufacturing company - Financial modelling, acquisition due diligence, forecasting, trend analysis, and reports for a company that’s looking to make double-digit acquisitions in the upcoming 12 months. Focus on budgeting, forecasting, and planning, as well as KPI analysis. Probably some ad-hoc financial analyses and presentations for upper management mixed in.
Questions
- Is it better to leave now, or stay a few years at my current firm until promotion to Manager, in the hope of being able to command a higher title and salary in corporate? The compensation for the above positions appears to be the going rate at the analyst/senior analyst level, so I would be taking a significant paycut. One of the problems I foresee with waiting until later is that I could potentially pigeonhole myself as a QOE/FDD guy, causing the eventually jump into industry to be much more difficult than if I were to leave now.
- For the people who currently work in corp dev/FP&A/corp strat - are these roles really interesting enough to justify leaving, and taking a large paycut? Anything I jump into would really have to be worth it from a career standpoint and significantly more interesting to justify the lower compensation.
Any responses, as well as general insight from people who have had to make a similar decision is highly appreciated!!
BudLightIsGood, have you checked out these or run a search:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
Just curious, did you enter FDD after a two year audit stint? Trying to follow your exact path, specifically get to A&M with the bigger bonuses relative to big 4. Also, how different is the work and hours between Big 4 and Middle Market Firms such as A&M or Duff?
I can give a little insight as I went from audit at a big4, to an internal FP&A role for a year, to TS/FDD advisory as a senior, stayed till manager, then jumped to a middle market firm. I strongly recommend the 2 year stint in audit and in our group, was the norm. Middle market bonuses were definitely more impressive than big4 however, I found myself wearing several different hats in middle market, whereas it was far more structured in big4. Work hours were fairly consistent as its dependent on the number of deals you are staffed to at any given time. I have had some very busy periods in middle market being short staffed however, with several months straight averaging over 80 hours per week. Its unfortunately the nature of being dependent on deal flow and not as easily planned as your audit busy season. Depending on scope and deal, audit procedures do overlap with due diligence but far less beating up of the numbers, testing, and support requirements. In many instances if adjustments were minimal, GL and management representations are enough for support. Hope that answers your questions and good luck. Not an easy jump to make as so many people have aspirations of advisory.
Also what city are you in?
Historical thinking was always "get to manager at a big 4 and then jump to industry", thinking that would give you more clout and a higher title in industry. I haven't seen that happening as much any more, particularly for non financial reporting type roles. If you find an opportunity you like, I say you jump now while taking a junior level position isn't as big a hit. As far as the work, it's different. Being in the FDD advisory side, you see a massive amount of deal flow with many different clients. It's frantic and fast paced and lots of exposure. The corporate side is a much easier work life balance, you feel like more of an owner of the deals, you develop more specialized expertise in your industry, etc. What type of personality are you. Do you like the fast paced deal flow with exposure to lots of clients and sectors, or do you want to settle in and feel like an owner?
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