Two Offers to Choose From

First off, I want to say thanks to all the posters on this board. WSO has been an invaluable resource in preparation for interview season, and I don't think I could've advanced this far in the recruitment process without all the insights and information on this board.

I recently had a couple Super Days and am fortunate to have received two offers in the process.

1) Firm 1 is one of the few BB banks that's still hiring, but has the constant threat of layoffs, and has demonstrated the willingness to cut employees. At the same time, the pros include the brand name, the global presence, and more conventional exit opportunities. Cons would include the "culture" at the BB, which is about as strict and methodical as you can get. Its IBD employees are nice people from top schools, but lack the enthusiasm and collegiality that's present in a less structured work environment. PE is a very popular exit op for its analyst.

2) Firm 2 is a middle-to-top boutique that has a specialized niche in a certain industry. Whereas it obviously doesn't have the worldwide prestige and brand recognition of the BB, I've really taken a liking to its reps, from the analysts up to the MD's. The culture is much more entrepreneurial and the hierarchy is extremely flat, with the opportunity to gain more hands-on deal experience. They've been growing and hiring while their peers have been shrinking and firing. Not many analysts tend to exit into traditional PE/HF - many choose to stay with the firm, or some go into more specialist funds/strategies.

If I'm concerned not only about exit opportunities, but also about job stability, then which would be the better option? I'll admit I'm somewhat of a brand whore, which is why I would gravitate towards Firm 1, but 2 years is a long time and I want to thoroughly enjoy the experience and learn as much as I can in the process, but still be able to have solid exit opportunities a couple years down the road. I come from a non-finance background from a target school (but not top target), with a mediocre GPA (3.6), but solid work experience + EC's, and would ideally want to leverage my analyst and post-analyst experience into a top MBA program as well.

Thanks for any and all advice in advance.

 

From the sounds of it, you really can't go wrong with either offer. If you're okay with the risks, go with Firm 1. However, this is going to be a really painful two years in which case you'll be worried about your job security for the entire time. If you want to have a better experience, learn more, but have a harder outplacement transition, then Firm 2 is the obvious choice. I'd personally choose Firm 2, but I am more risk adverse than most and would rather not spend two years of my life slaving away at a place that I really wasn't interested in working at.

~~~~~~~~~~~ CompBanker

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

Firm 2 sounds like the better deal long term. More hands-on and you'll obviously learn a lot more of value. If you've already come to the conclusion that you're a brand whore, you're way ahead of the game. Go the extra hundred yards and convince yourself how ridiculous it is to be brand whore and you'll free yourself up for real opportunity.

Besides, I can't think of too many "brand" name firms that are all that prestigious right now...

 

Go with the BB, in this environment I think it would be a mistake to lose that type of opportunity. The boutique would be a better choice if you really wanted to stay in IBD for longer, but unless its a top boutique, the exit opportunities will be harder to find. I would not turn down that stronger company because who knows if you'll have that type of opportunity again.

 

Think about what you want to do and if it fits with your long term goals, remember they are trying to expand into third party advisory and just read up on the dozens of posts people like me have made on the subject.

If you want a career and stability, go with 2. If you want a big name and to just ride out the storm, go with 1.

--There are stupid questions, so think first.
 
Best Response

I had the same sort of dilemma about a year ago as well, BB vs. specialized boutique. I picked firm 2 and do not regret my choice. I am not worried about my job, work with great people, love the sector i'm in, don't have face time and have openly expressed my interest in doing an MBA without getting too much flak from associates and VPs who passed on B-school to stay at the firm. Find out where firm 2's managing principles went to school, if they went to some top tier MBA programs then it will defintely help with reference letters.

With that said, I was never interested in prusuing megafund PE, I'm more interested in starting something of my own when I have enough experience.

 

I can't believe "brand name" is even a consideration

1) There are plenty of people who chose Lehman or Bear over BofA, Barclays, etc for brand name who are now unemployed.

2) Exit opportunities into PE/HF are going to be few and far between for the next few years regardless of what firm you're at. You will see analysts/associates who came in with 2 year plans sticking around for longer due to the current job market and they'll be in front of you in the line for PE/HF when that starts picking up again.

Question - when you say boutique do you actually mean a boutique, or is it a foreign bank with a small IB presence in the States? If it's the latter then def number 2.

 

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