What is the difference between Deloitte S&O - Finance (M&A) and Deloitte Corporate Finance?

[Note: This is my first time posting. I promised I tried the search function first.]

I'm trying to figure out the differences between two groups at Deloitte: Strategy & Operations (Mergers & Acquisitions function) and corporate finance. I understand that S&O is part of their management consulting practice and DCF is part of FAS, but some of their descriptions sound very similar. My guess is that S&O does more strategy, whereas DCF does more of the modeling, but it also says S&O does diligence.

Any insight would be greatly appreciated! I would also be interested in hearing about the lifestyle/pay/hours/culture differences between the two groups.

For reference, I'm interested in corporate finance and development. I really like financial modeling, but I also want to interact with clients/feel like I'm actually helping, so aspects of both groups are appealing.

Thank you so much!

 

Deloitte corporate finance is their pure investment banking group, which focuses on advising companies on potential M&A transactions and capital raising.

From my understanding, the M&A function within S&O involves consulting clients on integrating the two companies post-merger.

A lot of DCF's clients are often referrals from Deloitte's strong consulting business.

 
Best Response

From my understanding Bull Market is correct. I will add that the S&O M&A team may also be involved in assessing potential targets for acquisition. I am not 100% certain on details, but would imagine it includes advice from a strategic perspective rather than valuations. The S&O guys would focus on

The M&A team is highly sought after by analysts/consultants in the S&O program, and as a result, it's a highly competitive environment so the hours can be long. From my friends who have worked on M&A projects from the S&O side they are typically billing 70-80 hours a week. As an analyst, your salary would probably range from 70-75k depending on school, experience, and location. You could expect a 10k sign on, and maybe a bonus maxing out at around 10% salary, but most likely lower.

I would imagine the corporate fin people work longer hours, as is traditionally associated with banking. I can't speak to how their banking groups culture/pay compares to your normal banks. Salary should be roughly the same, but I do not how how the corporate fin team does their bonuses.

Do you have an offer with either of these teams?? As a warning: if you are exclusively interested in doing M&A work, I would go with DCF. You may join S&O and never get to touch an M&A project in your two years. You're far far far more likely to get the modeling experience you mentioned you enjoy in DCF.

 

To give you insight from M&A work from other Tier 2 consulting firms, the work involved is not nearly as "sexy." M&A from a consulting standpoint, ranges from pre-deal with post-merger integration, so its a relatively vague term. You could be doing some due diligence that may result in validating their technology capabilities, org structures, processes, etc., or be assigned to post-merger work that could involved trying to integrate various systems both companies have to make it one unified, or org change, change management, etc. It can be a lot less modelling and quantative than one might think, especially if you're viewing it from a finance perspective.

Just wanted to shed that insight to manage your expectations. The work and perception of M&A varies significantly between how consultants and bankers view it.

As for DCF, everything that Bullmarket stated is accurate.

Hugo
 

If you want to get modelling and more technical experience then definitely look in DCF. Pros: reasonable hours, much less than typical MM IB. Cons: comp is not as high with very low bonuses. What I've seen a lot of ppl do is switch to DCF for a year or two then head to a proper IB. If you go the S&O route, you will definitely be doing less technical work and more consulting ie post merger integ and pre merger strategies. This route is still very applicable to either other forms of management consulting down the road (read MBB) or IBD or PE. I've seen ppl go from both Deloitte FAS and S&O to mid ter PE firms from the various due diligence and merger planning they've done on deals

 

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