Why take Top BB over EB?

A sophomore from my school has 2 SA offers a top BB (GS any group) and top EB (Evercore/PJT). He wants to take the GS offer but I don’t understand why someone would. The top EB pays more, (a lot for first year out of undergrad) and I think, you get a better experience and the same exits (I don’t work at GS, obv). Why would you take the BB offer, just curious. Both firms are GREAT and anyone will be lucky to work at those listed.

 

I'm sure a quick search of BB vs EB would yield a bunch of results that answer your question, but in one sentence probably the biggest reasons why ppl would chose a BB over an EB is that a BB typical has greater name recognition that expands beyond finance, and idk maybe he just likes the ppl better?

 

Based on perception, it does seem like it's trending towards top EB > top BB. What are people's opinion on this?

 

You're an analyst asking on behalf of a SOPHOMORE who got offers at BB and EB..? Hm. But in all seriousness EB is if you know you want to stay within finance for the foreseeable future as most do not have "street cred" outside of the world of finance. If you know you want to do IB/PE and stay within the realm of finance forever, EB all the way. Additionally, EBs offer leaner deal teams with greater exposure to hands on work and senior bankers - it's hard to slack off even a little bit in an EB deal team, whereas a BB in NY especially, you're one among dozens/hundreds.

 
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Plenty of reasons to take a top BB over an EB. Unless you're set on staying in the industry (specifically IB, PE, HF) for your career, which is probably only about 25% of people who start their career as a banking analyst (and even less who know that before they start), a stint at GS/MS will set you up a fair amount better in terms of other opportunities, while serving as a sort of stamp on your resume. The community on here is not particularly representative of the broader business community, both on the east coast and elsewhere, where telling someone you worked at an analyst at "PJT" doesn't carry much weight.

Certain communities (internationally as well as Asian/Indian American) are also extremely brand focused and would much rather see their kid / themselves go to GS vs. a bank nobody in their family has heard of. Same reason a lot of these people would take a spot at Cornell 10 days out of 10 instead of a much more highly ranked non-Ivy League school.

 

Poster above made some great points. A few more bullets below:

-Easier to pitch work / build relationships with greenfield clients when you have a balance sheet to bring to the table (applicable as a VP)

-We have not really seen how the boutique model operates in a Crisis given the majority of EB growth took place after '08/Dodd Frank. Many people think the M&A market could be subject to more volatility and therefore have less job security.

-This Crisis has shown that the counter-cyclical effect of S&T during high volatility is actually more beneficial than the counter-cyclical effect of rx.

-A BB is very willing to move you to a cushier, but still highly paid role at the bank when you're sick of IB. All a lot of boutiques do is IB so this is less of an option.

-To many people, the less technical nature of some BB coverage groups is preferable to the modeling heavy work in IBs.

In general, if an analyst is skeptical of PE as an asset class, I think there are many compelling reasons to go BB rather than EB. However, if a PE exit is the goal oftentimes an EB is the correct choice.

 

If you leave finance, name of a BB speaks volumes louder than any EB, including the top ones. Outside financial services, almost no one knows what an Evercore let alone PJT is.

Just my experience after having left IB

 

Yea I doubt this is in the US because the timelines dont add up. There's also dozens of threads about this so idek why OP is asking

 

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