A Day in the Life of a Corporate Finance Analyst: Casual Friday, Mocking Consultants, and “Critical Emergencies”
Warning: This article doesn’t feature models (or bottles), all-nighters, screaming Managing Directors, or VPs punching their fists through car windows. If you want to see some of that, please check out 24 Hours in the life of an IB Analyst.
But if you’re looking to maintain your sanity and still get paid well without selling your soul, you just might be interested in what corporate finance has to offer.
Here’s what to expect in your average day (only 10 hours, because you just don’t work as much in corporate finance):
8 AM: I arrive at the office before anyone else. Everyone starts between 9 and 10 AM, but I like to get a head-start and work quietly for at least one hour before the open space gets full.
I send an update about my project to my manager, because when you get up at 6:30 AM it’s good to point out your dedication to others.
Note: I’m doing a bit of “face-time” here because I’m still the new guy. But in general, people in corporate finance don’t care nearly as much about face time as bankers do as long as you get results.
After answering my emails, I start crunching numbers for one of my projects.
Usually in a portfolio acquisition, the head MD makes an estimate of the number of people required to take care of the additional clients.
But given that his latest estimate was off by 20 people, I’m creating an Excel file to make more accurate predictions.
It’s a bit of math mixed with a lot of common sense. You have to analyze comparable transactions and project the growth of the portfolio.
The only difference compared to M&A models is that less money is involved (yes, paying 20 extra people for 6 months is still “less money”). But it’s also far more interesting because every model you create is brand new vs. the templates that are common in banking.
9 AM: My manager arrives, and I’m a bit shocked by his outfit. I knew that Casual Friday was a big thing in the UK but I wasn’t prepared for this – when the guy that you usually see in a classic “suit and tie” shows up in sneakers, jean and a white t-shirt it just rocks your world.
My first casual Friday was 3 months ago and I still can’t get my head around the whole concept.
To me this Casual Friday thing just shows how useless it is to wear suits from Monday to Thursday when you rarely (if ever) see clients in person. Maybe it’s out of jealousy for consultants (not likely), or just in case a client shows up in the building unannounced (even more unlikely).
10 AM: I start preparing a presentation for next Monday. My manager offered to let me pitch my project to the Paris Headquarters. Maybe it’s because I’m French; last time he did a presentation they couldn’t understand a word (he has a thick northern England accent). Or maybe it’s because he just likes me.
Anyway, I don’t have much time to spend wondering because if I mess it up, I know that I won’t get to participate in meetings for at least a year.
Note: I’m exaggerating a bit here, but not by too much. It’s common for analysts (or even interns) to talk to VP/MD-level people because in corporate finance you’re not just another face in the crowd that will be gone in two years.
But if you make a single mistake, all this nice treatment just washes away and it’s even worse than in investment banking, because they know you and they’ll remember you when promotion season – or layoff season – arrives.
11 AM: Tea break. Apparently Starbucks doesn’t know how to make “proper” tea so we make our own. I’m French and don’t have any strong opinion about how tea should or shouldn’t taste, so I just observe and casually join in conversations (and speculation) about the upcoming bonus season.
Note: In corporate finance, bonuses are completely different from investment banking – especially at the analyst level, where you can only hope to make 2 or 3 months’ worth of salary for your bonus.
It gets better at VP/MD level where you might receive 50% or more of your base salary as your bonus – depending on your performance.
11:30 AM: My pitch is almost ready but I’m interrupted by a “critical emergency.” We have a monthly meeting at 2 PM and my manager didn’t have the time to prepare his slides (no kidding !!) so I need to do it ASAP.
I wonder how he can be surprised – the same meeting takes place every month and I’m thinking about actually booking it as an “emergency time” on my calendar.
1 PM: Damn, it feels good not to be an investment banker. I’ve been trying to align everything but this stupid title just won’t fit properly. Thank god I only spend around 5 hours a week preparing slides for other people.
Now that I’m almost done, my manager reviews it and makes me change everything by annotating with a red marker instead of using the “track changes” feature in PowerPoint. OK, I guess it’s not that much better than investment banking.
1:30 PM: All the modifications are done. I only have 30 minutes for lunch but I don’t really need them because almost everyone eats in front of their computer in the UK, which makes for quick lunch breaks.
I do miss the good old lunch with all the other analysts/interns that we usually take in southern Europe.
2 PM: The monthly meeting starts. It’s a one-hour update about this month’s performance and objectives for the next one. Every manager pitches his own business and around 40 slides are presented.
Of course, we only spend one minute on what I created. Almost 3 hours of preparation for one minute of presentation – not the best ROI I’ve seen, but I guess that’s what it’s like to be an analyst, no matter where you work.
3 PM: We’ve got another meeting. But this time we’re not the ones pitching – consultants are coming to visit us. My mission has an obscure link to their work so my boss asked me to come. I accepted enthusiastically because it’s always a lot of fun when finance people meet with consultants.
It’s their 3rd meeting with us and right from the start I regret missing the first two. They start the meeting by talking about “what’s been done so far” and apparently they “successfully challenged the perimeter of their mission”.
I turn to my boss and he tells me that they defined this very “perimeter” – in the previous meeting.
But it gets even better: they announce a “stochastic approach”. Unfortunately for them, they don’t know what the word means but everyone on our team does – whoops.
I feel sorry for them because they might be really good at what they do, but the environment is so hostile that no one would notice anyway.
In my opinion if you want to be a consultant, you should really consider building expertise in one field by working at a regular company, and then only go into consulting at a more senior level once you actually know something.
4 PM: I go back to my desk and connect to the internal job search engine. I browse through the latest openings and forward the interesting ones to a bunch of friends interested in corporate finance.
I also give them advice on their resumes and cover letters to improve their chances. It feels good to be helpful, but I’m not doing this only for the sake of philanthropy – HR offers £1200 if they recruit someone you recommend.
Given the size of bonuses at analyst level in corporate finance it would be nice to get some extra cash like that. Plus, it’s also good for my networking efforts so I try to invest in this whenever I have a bit of “down time”.
5 PM: I’m starting to think about leaving but someone from headquarters decides otherwise. I receive an “urgent” email – on a Friday at 5 PM.
So I start reviewing a financial model I developed one month ago and I send over some guidelines so that he can pretend to review it. If it takes you one month just to open a model and realize you understand nothing, then please delete your email draft and stop pestering analysts with pointless questions.
6 PM: Usually I’m off at 5 PM, but I had to deal with this fire drill first. I leave with the MD and we chat in the elevator about our plans for the weekend, and he offers me a ride to the pub. To the pub? Yeah, because it’s Friday and therefore time for after-work drinks.
I was surprised at first, just like with Casual Friday, but this one was a good surprise.
Each Friday, everyone from corporate finance meets at the pub and you get free rounds from the head MD or other managers in a very relaxed atmosphere. It’s like Christmas before Christmas for people who like to share the latest rumors about their colleagues and senior management.
Conclusions
It was a typical day, with some data crunching, some interesting meetings (and useless ones too) and some pointless requests.
You could find a different schedule or work environment in different companies or countries, and not all corporate finance analysts have exactly the same job. For example, when we’re negotiating an important contract my average day might look just like a day in the life of the investment banking analyst.
Disclaimer: All generalizations and stereotypes used in this article are the reflections of my own sarcastic mind.
If you want to share some stories about what it’s like to work in corporate finance or if you have any questions, please let me know in the comments below.
Thomas Ausart founded finance-resume.com with Mike, a former Investment Banking VP, to assist you with your resume editing, interview preparation so that you land the Finance job you really want. Check out the new From Zero to Hired Coaching Plan here. Follow Thomas on Twitter to get daily recruiting tips.
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“In my opinion if you want to be a consultant, you should really consider building expertise in one field by working at a regular company, and then only go into consulting at a more senior level once you actually know something.”
So there should be NO entry level consulting roles? What about, say, industry IBD groups? No analysts, just associates who made the jump after a couple years in industry?
I wouldn’t normally go out of my way to make a comment like that but it seemed like this guy was trying his hardest to get under my skin. I think the point of M&I articles is to be informative and helpful, not to show off how pompous and clever you think you are. Little to no value provided by this article.
Oh and I turned up the volume on my computer right as you said, “Damn it feels good NOT to be a banker” and the ‘cricket’ noise actually started coming out of my speakers… Don’t quit your day job.
(Go ahead and delete this comment, but I’m sure there are others who feel the same way as I… knock yourself down a couple pegs)
I think you might want to relax. He was just saying that a lot of consultants would be more valuable if they gained industry experience first. Obviously there’s a role for entry-level consultants, it just fits into the ongoing theme here of making fun of consultants just for fun.
On your point about IB industry groups, it’s not comparable because in IB your industry knowledge matters much less. You are doing finance and using your accounting and finance knowledge to value companies, run deals, and so on. Knowing something about the industry can help, but you do not need to be an expert on tech companies to work in a tech IB group. Whereas consulting is more about operations as opposed to finance, so industry knowledge matters more.
I disagree that “little to no value” was provided by this article. Plenty of people ask for day in the life accounts all the time and for what it’s like to work in groups like corporate finance, and here he went into detail on a few tasks he actually had to do during the day, what the average day was like, and so on… similar to the other day in the life accounts for other fields.
So, point taken, and yes, this was a guest author so it’s not coming directly from me, but we’ll have to agree to disagree.
The referenced quote about consultants was just one example… there was a snide attitude from beginning to end that irked me to leave that comment.
And regarding you’re recent hiring expansion/increase in articles, always remember quality over quantity. I know you have to delegate but M&I fans have grown accustomed to quality, well structured writing with a touch of humor/wit and always a clear message. Don’t lose that focus…. Just playing devil’s advocate and throwing out my 2 cents.
Thanks for not deleting my comment and responding… I really do appreciate your comments Brian. Keep up the great work.
Thanks. Point taken once again, but I actually spend hours editing each new feature from guest authors. In fact, it’s probably *cost* me time so far since I’ve had to do so much editing lately.
I agree that quality is important, but there are plenty of areas that I just don’t know enough about to write on, hence why I wanted more contributors in the first place. If I don’t think something is good enough to be published, I just say no (and I’ve done this to a few guest authors so far).
But yes, I will make sure that the author knows to cut back on the wit for next time and to focus more on information.
Bud, making fun of consultants is something that belongs on this website and it is one of the things that makes this website so entertaining (besides the informative part). You should not take it too serious for it isn’t meant too serious.
Consultants are terrible and useless.
Signed,
Bankers
Sub-signed,
Accountants, Lawyers, Corporate finance, etc.
P.S. How can someone fresh out of school expect to add any operational insight on a company thats been around for years?
I read your comments Bud and I’d like to understand. Yes, I make fun of consultants but not every consultants, just the one that were at my company this day. And I’m currently interviewing financial consultants to show people that consulting isn’t just about pretty powerpoint presentations and can really add value. I was just teasing consultants here.
Hi bud
Look,the writer has a style that some will like and many may hate.
About what he said concerning consultants I absolutely agree. I moved out of consultancy into the bank where I ran a consultancy because I realised that consultants sell a load of bullshit in a nice presentation, using consultancy jargon to try and make it sound like something.
There are two things consultants can do:
1. They can assist a firm in implementing the firms own strategies
2. Individuals presiding over a wealth of applicable knowledge and experience can sell it to a firm
Other than that they should stay very far away from any somewhat successfully run firm.
A firm needs to be ABSOLUTELY HOPELESS before it could actually think that an outside party can truly provide the strategy and solution that cannot be produced internally.
That’s my opinion, anyway.
Just another point on the written piece. It is a day in a life, not a pitch. I think the writer actually does well in sharing some of the thoughts that went though his mind – that’s a realistic view, isn’t it?
Cheers
Yes that’s a great point, this is a day-in-the-life account, not an instructional tutorial. Day-in-life / story features vs. tutorials vs. interviews are all much different.
Bud – Get off your high horse and write your OWN article on your OWN experiences if you can’t take a joke or light hearted article.
Or better yet – just dont comment. Most comments add value. Yours added ZERO.
I think the article was alright.
Are you kidding? This was funny and informative. I want to get into Corporate Finance now. Really. Finding that elusive work-life balance is something I don’t know I’m willing to spend two years as and IBD analyst for…
Thanks! Yes, much easier work-life balance at a normal company.
Well this could be the perfect career for me because i love/have alot of interest in corporate finance and also love leaving at 5-6 pm lol.Although i dont mind pulling the occasional graveyard shift during peak season.
I’m glad that you consider a career in Corporate Finance. But keep in mind that nothing’s perfect.The job is interesting (but you also have your fair share of grunt work) and the work load looks good (except when you have to stay at work until 1 am for a week). But I think it’s a good compromise that works for many people.
I just wanted a quick advise if you dont mind.I am a trainee auditor (like an intern) and will be a chartered accountant.
(I have read your article on how accountants can get into IB via tas dept of their firms , i will try to get contacts in the next few months from TAS).I work for BDO in internal audit and find it boring and monotonous.
I have interest in financial planning and analysis,corporate finance,financial and management accounting which is why i have narrowed it down to 2 fields
1)joining FMCG companies like unilever or P&G and become a financial analyst (different kind) assisting in budget prepartion,variance analysis,forecasting and P/L analysis
2) IB – wont mind bulge bracket or boutique , i could dig out few contacts in BB but still difficult.
My only problem in IB are the work hours as i think it can have multiple side effects relating to health etc
i know they are 2 contrasting fields but any insight could be useful
I chose the 1st option, and if you’re interested in Financial Planning & Analysis that’s definitely the way to go. You’ll know how to prepare a budget and learn a lot about financial mechanisms. My advice would be to apply to a graduate program where you get exposure to different activities within the firm. This kind of program exists in almost every big company, pick the one specialized in Finance.
Rohan,
If I can offer some insight, I’m currently working with a Big 4 firm, and working on the jump to a financial services job. I would say take a moment to consider any class work that you’ve performed in school that is related to both jobs. If you’ve done any work with DCF’s or WACC, enjoy researching capital markets and don’t mind working long hours under pressure, maybe try for I-Banking.
However if you don’t find that to be terribly interesting, but like really “digging” into the details of an account balance, I.E. Revenue increased by $5m, but an increase in sales accounts for only $3m, to explain the difference, maybe a financial analyst role is better suited for you.
I would just remember that after a year in audit, it’s not easy, to just “jump” into TAS or an IB role. So if you think you’re willing to commit the time/energy to I-banking, I say go for it straight out of school.
ok thanx for the insight
i have completed 2 out of 3 levels in my chartered accountancy course and in the 2nd level i did do topics related to valuation,DCF,WACC,working capital management etc.
After 2 levels we have to complete a compulsory internship of 3 years in either audit,taxation etc.I still have 2 years to go.I dont mean to go in IB or TAS right now, just want to network with people working there.
As you said rightly i do like digging quite a bit which is why a financial analyst role in say FMCG suits me.
Just curious, any idea how the bonuses are in this(FMCG) industry?
Interesting article.I think it’s cool to discover things outside the IB world. What sort of exit opportunities can you find after this type of job?
You have less “exit opportunities” because a large percentage of people stay in Corporate Finance all their life. Consulting is definitely an option if you have interesting experiences. If you absolutely want to get into Investment Banking/Private Equity it’s possible but only if you’re one of the top performer (and it’s not easy).
LOL @
“To me this Casual Friday thing just shows how useless it is to wear suits from Monday to Thursday when you rarely (if ever) see clients in person.”
Could you do an article on Capital Intro, Brian? Thanks!
Yep – We’ll look into cap intro. Thanks for your suggestion!
I’m currently working corporate finance at a Fortune 500, and my day (minus most the sarcasm) is pretty similar!
The downside… I never really wanted to be a corporate financial analyst.
I always wanted to get into investment banking. Does having the corporate finance background help any? Any advice on how to make the switch?
Yes your background should help.
Focus on the industry your company is in. I presume there are specific IB sector teams that cover our industry. Dig out such teams’ contacts and email them your credentials and ask for informational sessions.
Now it REALLY feels good to be a banker =D !!!
When did it ever not?
When you have to get back to the office after 2 hours of sleep after you pulled an “All Nighter”? ;)
Well when I was watching ‘the end of wall street’ and contemplating whether I’d end up as a shoe polisher,bartender or security guard, it was a scary time haha
Hi Brian,
Great article! Could you please tell me what corporate finance opportunities are available out of undergrad and what it takes to break in. How competitive is the process overall. I attend Goizueta @ Emory University – would you say we are a target for a lot of firms?
Corp fin – industry groups like consumer teams, leverage finance teams etc
What it takes – http://www.mergersandinquisitions.com/get-a-banking-job/
School – Emory is a decent school, there should be a few firms recruiting there. Not renowned for being a finance school but I’d imagine a few of ur alums shd be in finance
Hi Nicole, thank you for your timely response. Sorry I did not clarify, when I said “corporate finance” I meant the finance division of a F500 company. If you have time could you please respond.
Thank you,
Nick
Hi Nick,
If you come right out of school with a finance/economics/business major you have access to financial analyst jobs.But my advice would be to (as I said earlier) to apply for a graduate program (in finance) in a Fortune 500 company. This way you’ll move up the ladder way faster.
Hi Thomas,
But what kind programs are these?
Could you name a few ‘prestigious’ programs?
The only one I know of is GE’s FMP program, which i know of to be an excellent educational opportunity, if you don’t mind the hard working hours(work+education) and pressure to perform. (Oh, and did I mention the puny salaries?)
I believe Thomas has answered your question!
Hi Brian
Great article as always – somehow unrelated to the topic, I was wondering if you had in mind to keep the serie “IB: Australia/Asia/Italy/Pakistan etc edition” with, say, Latin America – I’m guessing most of the jobs there are project finance related, and would probably be covered out of NY, but still would be quite keen to have some more insight
Thanks for your suggestion – we will think about it !
Very interesting article ! I’ll write about the “italian sales support into an italian investment bank” (just another way to say “I’m a corporate finance internship analyst !”)
Thank you for an really interesting article. I am also looking for a career in Corporate Finance and currently busy with applying to the big 4 in UK.
My question is whether it differs that much from IB? I heard that the only difference is size of the deals, is that correct?
I was also wondering how you would answer the following question in an interview: Why do you wanna work for us(CF department at BIG4) and not a IB firm?
The quality of work, deal size, culture, pay are all different
Just related a personal story of yours that got you interested in CF in a big4 –it’s about being personal. Other cookie cutter answers like I want to know how to value companies, understand how to raise capital etc are too common.
Hey, that’s a great article on corporate finance ! But just a quick question here. What is the approximate base salary that a junior analyst or a fresher gets ?
Hi Tanisha,
Thanks for your comment.
It’s really hard to give an exact number. It depends a lot on the company/the location etc. But in Europe, you can expect something in the $60k-$85k range. A bit less if you’re not in a finance hub, a bit more if you come from an elite school.
So that would be like 44K euro to 62k euro.In Europe thats decent actually
USD 70K or so base. Bonus depends on the year/firm
Thomas,
When you refer to Corporate Finance, what exactly is the “brief” of your group? I currently work in Internal Strategy for a consulting firm, and have been applying/interviewing for Strategy & Corporate Development jobs. Is your job similar to this? Or is it more similar to FP&A?
Hi Zach,
For me working in Corporate Finance means providing the executives with analysis so they can make their decisions. But it’s also hedging your positions, define the price of the products… So I’d say it’s a mix between strategy (because the CFO helps the CEO make all major decisions) and FP&A.
is there anyway to get into this job straight out of undergrad? finance/consulting job recruiting is too hard for a non-target like me.
Figure out which F500 company you want to work for. Find out the person who has the hiring power in corp fin. Email that person your resume & details. Tell him you want a job in corp fin w his company.
Are corporate financiers seen as wimps by guys in IB and S&T?
Not necessarily. And other people’s perception shouldn’t matter much.
Hi,
Whats the best approach to break into Corporate Finance if you have a low GPA ? I graduated with a degree in Economics,minor in Business and currently pursuing the CMA designation. I’m interested in working in corporate finance for a fortune 500 company. Would an MBA in Finance from a top business school help ? I looked at the recruiting partners for Top MBA programs in Finance and most of them are Investment banks.
http://www.mergersandinquisitions.com/finance-low-gpa-no-experience-non-target-school/
An MBA would help in your case
Great article MnI!!!
I am a CA from India currently in IB as an analyst in a boutique firm.
Ok i have two different questions, please give your insights:
1)We have a Certified Valuation course by the Institute of CA which provides knowledge in Business,Share,Asset,Brand,Derivatives,Goodwill,IPR Valuation,etc. Will this course benefit in Corporate finance/consultancy/IB??
PS: i can provide more details of the course if required to give an advice
2)Please recommend a list of IB books that should be read, all i know is Monkeys business and liars poker.
Thank you the informative website!!!
1. Not really but it won’t hurt.
2. Valuation – http://www.amazon.com/Damodaran-Valuation-Security-Investment-Corporate/dp/0471304654
Ok, because i have been contemplating between
1) Financial modelling courses
2) Dun & Bradstreet Certified Corporate Finance Professional
3) Merger and Acquisition certificate course by IIM( A premier indian management institute)
4) Certified Valuation (as mentioned in previous post)
Can you please advise which course will benefit me most in IB or for corporate finance(CF just as a exit opportunity, if at all)?
I’d suggest 1. However, readers may be other perspectives on breaking in IB in India
Interesting article.. How would I spin my story if I have an IB internship but now I want to do Corporate Finance? I was going to go the angle of saying I feel I’d thrive in an environment where I don’t have to deal with the miserable hours and where I can focus on learning and growing as a professional. Also would you suggest that I still include how I got interested in IB in this story? I state that I read an M&A transaction that got me interested and led to an IB internship. I don’t want to make it look like I’m more interested in IB. Thanks for the advice.
http://www.mergersandinquisitions.com/why-investment-banking/ should help
What is Investment Bank Finance?
Also, what is the difference between Corporate Finance and (Financial Planning & Analysis)?
Corporate Finance – http://en.wikipedia.org/wiki/Corporate_finance
Financial Planning – http://en.wikipedia.org/wiki/Financial_planning_(business)
For a lot of the questions you raised, I’d suggest you to refer to other online sources too
If you’re looking to see all the funny nuances in the day in the life of corporate finance, this blog really does it justice. http://whatshouldwecalltheman.tumblr.com/
Sounds interesting, i am still working at a executive level, i do not have much to say, it is relative but to a much smaller extent :)
But i think the volume does not matter ‘coz at the end of the day, no one give a damn about your ideas and all your expertise is encashed by the people on top :)
How is ‘Business Finance’ different from ‘Corporate Finance’?
I am applying for a ‘business finance’ job that its job description says ‘Job Function
Business/Economist, Business/Investment Banking, Business/Brokerage, Business/Trading ‘ with focus on retail wealth management
Does it sound like a legit job?
It sounds like a retail WM/brokerage type role. I don’t think it has anything to do w investment banking though I may be wrong.
Does this job have good exit opportunities? Would you consider this job as a solid job to start with after graduation??
Solid exit opportunities – depends on what you make out of it though I don’t think it offers as much exit opps as BBs offer. The question should be: Do you have other options on hand?
No I dont.
For soon-to-be gradautes who do not have offers from BBs, is this going to be a good option to choose? (I might have a shot at securities firms in Korea.)
If you don’t, I think you might want to see if you could “broaden” your options. I don’t think you could make a wrong decision though I’d suggest you to learn more about the job before you accept the offer.
I’d like to add my thoughts around Corporate Finance, I’m currently in FP&A (and no I don’t do journal entries).
But first my background…
I came out of a five year BBA/MBA program from a non target school. I ended up with several big four accounting offers, however after spending five years pursuing an accounting background I didn’t want to end up in Auditing/Tax. I was interning at a big bank, and thought I could move into IB by networking. Turns out graduating in 10′, derailed those plans. I ended up landing a position in Private Equity Fund Servicing (Basically outsourced Accounting/Tax for PE firms). I continued to network, finally I landed a front office job in Sales Strategy. The MD I worked for at the time scratched my plans since I had not completed the 12 months required to move. Shortly after I landed a job within a PE firm, doing accounting/treasury. I thought I could, through hard work, move to the deal side. In short, I came to my senses and realized I have no transaction experience and they were not willing to train (I had a long conversation about it in my mid-year review, was promised the world, delivered nothing). I ended up moving, less than a year into the job. I moved into a Corporate Finance role at a FTSE100 company at their U.S. office. This time I researched hard and spoke with the SVP regarding the work I was looking to do etc.
I enjoy the role, my day to day includes tons of small ad-hoc analysis, mixed with financial analysis of some key strategic projects within my company. I work directly with senior management and advise on decisions. The only thing that’s difficult is the self training. I’ve become the go to analyst for high priority deal structuring and modeling. I also support the forecast process for our largest expenditures. Honestly, if someone was content with earning a good salary and decent hours, there’s no place like Corp Finance. However, you can’t expect the wall-street type paychecks.
I’m looking to leverage my experience to land a role in Consulting or if I’m lucky back into PE (deal side). Any advice? I have thought about sticking around, I’m being told I will advance fast into management, but will have to move overseas. Oh and also I miss the “real” bonuses.
Thanks for adding that. Sounds like you found a good role that was a big improvement over your initial plan.
For moving into consulting or PE, it’s 100% about finding a complementary industry focus and networking insanely hard… so find PE firms and/or consulting practices that specialize in the industry your company is in and focus on them. Say that you understand the transaction and valuation side, plus the industry itself and can give a lot of insight into companies since you worked at one. You’re moving into PE / consulting now because you want to gain a broader perspective on the market and know what everyone is doing vs. just working at one company and seeing how things are run there.
Thanks for sharing your profile and struggles.You said “for high priority deal structuring and modeling. I also support the forecast process for our largest expenditures” and thats good cause its quality work.I think this would be a good fit for me because the hours are good and pay is also decent although not like that of IB analyst.
Most of the blue chip or listed companies have this dept
Could you give us an idea of what the pay is like , a ball park figure on salaries and bonuses would be helpful
I think it really varies, depending on experience.
Analyst 55-80
Senior Analyst 65-100
Manager 90-130
Senior Manager 130+
Directors 180+
Bonuses vary based on company performance. But from what I’ve seen vary from 10%-50%. That’s a huge range but realistically what you can expect.
The role could lead to CFO position if you really put in the work. Another thing I’ve noticed is the ability to transfer into the “line” if your interested.
You mean USD or UK pound (or is it euro)
Hello, and thank you for a very enlightening article.
I’ve been planning on getting into consulting myself, and I’ve sort of got my foot in the door in that regard, but I’m still apprehensive. I’ve just completed my B.Sc. in electrical engineering, majoring in electrophysics, and while I’m certain that engineering simply isn’t for me at all, I’m at a bit of a loss in weighing my options. My future plan is to finish my master’s degree, (we’ve come this far, no turning back from that) with a focus on computational engineering, mostly because I think the math and statistical modeling involved may be of at least a little bit of an advantage compared to understanding quantum physics, at least when it comes to finance.
I also decided to minor in accounting, with a possibility of getting a M.Sc. in economics as well.
Anyhow, after reading this article I’m certainly inclined to look into corporate finance/development, since consulting does come with its downsides. Consulting does have a lot of grunt-work, and investment banking glues me to a computer screen for too long a time, so I’m wondering if corporate finance is the way to go in order to get the best of both worlds?
What I mean by that is, that I’d still like to meet clients AND be able to so some serious analyses and number-crunching when the time is right. The problem with consulting is, that I’d rarely get to really analyze anything with greater detail.
This link should help: http://www.mergersandinquisitions.com/banker-vs-consultant-why-the-banker-wins-with-a-knockout-in-round-1/
I don’t think you’ll get to meet clients too often at a junior level when you’re in banking though. You’ll be doing lots of grunt work and long hours, though the pay in banking may be better than that in consulting. However the exit opportunities are different. Depends on what your goals are and what you want out of your career
Thomas has said that hes French and also said “I do miss the good old lunch with all the other analysts/interns that we usually take in southern Europe”.
So does he accept that France has a Mediterranean culture rather an Anglo Saxony one lol? Or has he worked in Italy/Greece for a long time before.
Just curious
Hi, article was a nice read!
I come from a tax background (with a Big 4 firm), am CA quaified and been with them for 4 years. I have been looking to get in to business consulting for a long time, more specificially strategy or supply chain. Though I havent been involved in any projects, from what I have read and people I have spoken with, it really sounds like something I would love doing.
Ive been recently offered 2 options:
1. Supply Chain Consultant (grad scheme) – this represents a 30% drop in salary and a 2 years grad scheme before I get back to an “equivalent” level of where I am now in my current role. [Seniors explain that only grad scheme available due to nature of job therefore I cannot transfer at a more senior level with my zero supply chain experience.... is this true?]
2. Corporate Finance Executive – this is a transfer across to CF team at my current level and therefore no drop in salary, may be even a slight raise.
My question is whether experience and skills acquired in CF would lay the foundations for a move across to consulting some time in the future at a higher level e.g. manager/senior manager? Has anyone seen their peers/friends do a similar move from CF to consulting, is it frequent/rare?
My main goal is to get in to consulting but taking a paycut is not ideal for me. Therefore would appreciate some comments/insight in to what could be available to me if I were to pursue CF route instead, or whether taking the monetary hit now would make sense.
Thanks
I’d probably choose 2 given the nature of the work and the pay. Readers may be able to offer you better suggestions
Hi there, You have a very unique view towards this specific topic, and I find it very enlightening to see something so different. I expect that you will keep up with your efforts, and give our minds a bit more to think about.
Hi,
I’m new to IB and I’ve been trying to figure it out what IB really is. I thought Corporate and Investment are same thing before but apparently not according to you. Can you please explain the biggest difference between two of them? They both are dealing with M&A deals but why are they different? Also is there anything else other than M&A in IB?
Thank you
They are not the same. Please see the following articles for an explanation:
http://www.mergersandinquisitions.com/what-bankers-do/
http://www.mergersandinquisitions.com/industry-groups-vs-product-groups/
http://www.mergersandinquisitions.com/corporate-banking/
is there any difference between corporate finance done in a F-500 or in a Bank?
In an IB, you’ll be looking at different deals and you’re not really “building” the business over time in the same way you do at a F-500 company. At the F-500 you’ll be working on something over the long term while IB is more focused on short-term transactions.
http://www.mergersandinquisitions.com/corporate-development-recruiting/
http://www.mergersandinquisitions.com/corporate-development-on-the-job/ – slightly different from F-500 because the interviewer was working for a startup but you can still refer to it
Hi
On the subject of corporate finance, I am interested in moving into m&a and was wondering what is the best qualification for this. Some companies on their websites say ACA, PWC has recently changed this to CFA and have also seen a couple of companies offering/asking for CFQ. I would appreciate some guidance on which one would be more suited or popular with employers regarding m&a.
Thanks
None of the qualifications are really that useful. CFA is useful for the buyside, not necessarily for IB though http://www.mergersandinquisitions.com/cfa-investment-banking/