Hi everyone,
I have two potential opportunities in valuation. Eventually, I'd like to end up in IB then PE/HF. However, I did not attend a target school and will have more of an uphill battle.
Job 1: "Business Valuation Analyst" at a large regional CPA firm. They have a solid brand name around my region of the US. I would be working on M&A transactions as well as litigations. I'd be doing purchase price allocations, DCF, market analysis, etc.
Job 2: I haven't yet received an offer, but have a 2nd round of interviews with Duff and Phelps tomorrow for a "Portfolio Valuation Analyst" position. I would be doing valuation work for PE funds, hedge funds, etc.
I studied accounting in college and have already turned down several great audit opportunities to pursue the finance route. I have completed the CPA exam which, believe it or not, has given me a decent advantage for some valuation positions.
Thanks in advance for any help.
I had a call with a Duff and Phelps guy for that same position. Don't take it. He directly said this isn't IB/Modeling work. Apparently it's more about doing valuations for financial products (exotic options and the sort) that a PE/HF may have in their portfolio.
Interesting. Thank you for the insight.
While D&P is more of a brand name, the work at the regional CPA firm will be more transferable to IB. I went valuation/TAS -> IB - > PE so the move is certainly doable, and my story is not uncommon.
If you're deadset on IB, I'd learn as much as you can in the first 6-12 months then start to interview. I also wouldn't be too picky on BB vs. EB vs. LMM firm as it's tough to get a seat anywhere.
That is very encouraging, thank you so much.
I'm definitely not picky about the size of the bank/fund. In fact, a lot of boutiques in my area tend to care about work-life balance and have 55-60 hour weeks regularly. I don't really have BB ambitions tbh. I think I'd probably enjoy LMM more as I'd get to help add value for smaller companies and get to spend time with my new bride :)
I made my way into banking through the 'Job 1' route, definitely more applicable to banking.
Noted. Thanks! I'm thinking I'll probably go that route.
Bump. Would appreciate a bit more input on this before making a final decision. I know Bval might be a bit more relevant but D&P seems to have a pretty great reputation for valuation. And although the assets I'd be valuing are a bit more "niche", I think the skillset sounds similar in theory.
I started my career at a top valuation firm (Duff, HL) and was exposed to both the valuation services (goodwill impairment tests, purchase price allocations, 409A valuation, etc) and portfolio valuation (essentially marking the fair value of PE / hedgefund investments, similar to what you described above). I knew i wanted to do IB and ultimately after around a year was able to easily lateral in MM IB - my resume alone got me several interviews just from applying.
Duff has a strong brand name and almost everyone in IB has heard of it, as opposed to a regional firm that may not be well known. Regardless if you get exposure to PPAs, goodwill impariment tests, etc, you will spend a large majority of your timing modeling if you are in the portfolio valuation group. You also will get exposure to alot of their investments and really the most important thing when lateraling is being able to articulate and show you have a transferable skillset. Regardless if you are doing true DCF modeling, you will get exposure to plenty of investments, go through lots of CIMs and buyside materials, and can use all that to interview. Additionally, you most likely will get DCF modeling experience from that role as well. You also will get lots of exposure to comparable company analysis / precedent transaction analysis, plus alot of different type of valuation methodologies (Monte carlo, contingent claims analysis, etc).
I would really take what everyone above is saying with a grain of salt because they likely just saw that you said you'll be doing DCF modeling, comps analysis and figured thats more transferable. Guess what - both are and Duff gives you a brand name that is strong enough to land you interviews. The regional firm will make this much more difficult and force you to have to network way more. Not saying you wont need to network with the duff role but it will be more difficult. Both roles can ultimately lead to an IB role, but i would 100% go Duff if you have the option.
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