Advice: Lev.FIn vs M&A
Recently received an offer from BAML for summer 2016 and top 2 group choices are Lev. Fin and M&A. Interested in both but Lev.Fin was initially top choice as I know more people there. Given the condition of the credit market, I was wondering if opting for m&a would be the better option? I'm interested in PE long term.
This is all assuming I get picked by the groups, both are very competitive.
Thanks.
M&A
M&A- For PE recruting Lev Fin- Distressed Debt/ Mezzanine fund
recruiting*
Difference and similiarites? M&A and LevFin (Originally Posted: 06/30/2010)
What are some similiarites and differences in the job of M&A and Leverage Finance? Thanks
Similarities: M&A and Lev Fin, are two groups that are typically more analytically intensive. Differences: M&A does exactly what it suggests: M&A. Lev Fin is a subset of DCM (some banks have it as 2 seperate groups and some have it as one) and deal with different forms of debt/financing. Side note: Financial Sponsor Groups cover private equity firms so being in a Sponsors group will likely get you some direct exposure to PE firms, which MAY help your job search later on.
Different product groups, but can overlap in the case of an LBO or debt-intensive acquisition. some lev fin groups on the street divided by high yield, loan syndications and leveraged acquisition finance before market dynamics changed (LBOs blew up). acq. lev fin work involving sponsors is much closer to m&a than leveraged capital raises.
M&A is very 'process' oriented. LevFin is more techincal / modeling intensive.
M&A or Lev Fin (Originally Posted: 08/30/2009)
Which group is it better to work in (in terms of learning opportunities/prospects after analyst tenure)?
This is all under the assumption it is at a BB.
M&A
I would lean towards M&A in terms of marketability assuming apples to apples. Apples to apples in this case means both groups are top of their class rankings wise for each of the groups and gets outstanding deal flow in both groups. However, considering many banks are ranked higher (in terms of peer banks, not within a bank) in one group or another, I would lean towards the group ranked higher (if there is a solid difference). If Bank X is seen as a top player in Lev fin, but generally a supporter (rarely Lead) in M&A, I would probably go with Lev Fin simply because the deal flow and opportunities will probably be much better and provide more interesting and marketable experiences.
Personally, as I said before, I would go with M&A assuming the groups are both pretty solid in the particular bank.
IBanker www.BankonBanking.com [email protected] Articles, News, Advice and More Break Into Investment Banking
Depends a ton bank to bank. Some banks have lev fin with sponsors and restructuring which is probably better than M&A in terms of exit opps. Many other banks have lev fin as more of a DCM, ECM type group and no sponsor cares if you have done 10 HY deals.
Lev Fin or M&A? (Originally Posted: 05/02/2013)
Which skill set is stronger for long-term career progression, Lev Fin or M&A? Also, which group has the more interesting/challenging workload?
I'm asking these questions from the perspective of an incoming Associate (post-MBA).
Thanks!
Interested to hear about this also....
Financial sponsors group is very specific... majority of the analysts bounce to PE. M&A is much broader (esp. if generalist) and people jump to all sorts of places be it multinationals (future CEOs/Execs), consulting, PE, HFs, etcetc. Only been in M&A so can't say much about LevFin hours.
There's a difference between sponsors and LevFin...
Depends what you want to do, what IBD, etc.. Both are similar and have access to many of the same exit opps.
How is your firm going to be structured re: coverage groups, M&A?
Good question. In answering your question, the single most important thing in group selection as a new analyst is group's level of deal flow. Both M&A and Lev Fin product groups analysts have highly sought after backgrounds. So given the choice between the two, go with whichever is cranking a ton of deals. If they're close, I would, personally, take an M&A opportunity (granted I'm biased).
I assume this applies to the associate level as well.
It applies to any level unless you are the one bringing in deal flow.
It does. If you're doing the associate route, I'd further posit that M&A is better. In the event you decide you don't want to be a career banker anymore, it will give you a little more flexibility trying to find other options.
Thanks for all the comments everyone
LevFin vs. M&A (Originally Posted: 03/10/2007)
Last year, I was a summer analyst at a MM (think BoA, Wachovia, etc) with their LevFin group, and had a really solid experience there. I'm returning to the same firm this summer (interned last year as a sophomore) and I'm trying to decide between LevFin and M&A.
Returning to LevFin still allows for a lot of learning experience I think because the group is really good, and I think this time around, I'd focus more on trying to get to know the whole deal process start to finish a little better and nailing down things I missed the first time around. At the end of the summer last year, I came away with really strong technical skills (excel, modeling), but only a general understanding of the deal process -it's something I'd really like to nail down and solidify.
M&A is probably the firm's second strongest group, but a guy I knew last year actually went to LF FT after his summer because of the hours (which I wouldn't mind), and because he was doing a lot of pitches (which sucks). I'd say I'd probably be able to learn more in LevFin, even after a second summer but having said that, I have a few concerns
If I decide not to stay and move elsewhere, would two summers in LevFin hurt me or help me? (better for resume to have two different groups? depth of experience vs. diversity?)
What's been the impact of recent market conditions on the origination of things like leveraged loans?
Thanks
From what it sounds like, you liked LevFin. Stick with it. If you think M&A is what you want to do more, then go.
Stop stressing over which choice will enhance your resume. At this point you have completed a summer internship and you are more than 50% there with respect to being in the game full time once you graduate.
I STRONGLY recommend that you consider which area interests you more...and capitalize on having the ability to choose. If you like LevFin...stick with it!
I spent several years in levfin and recently decided to try something different...and moved to the coverage side. I HATE IT...and am already positioning to move back to LevFin as soon as possible.
LevFin and M&A are very different specializations... if you aren't completely convinced that you'll enjoy M&A...I'd stick with LevFin.
thanks for the advice...
If I may ask, what prompted you to try something other than LevFin, and what exactly do you hate so much about being on the coverage side?
Basically I had a desire to be on the coverage side. I wanted to get exposure to the equity capital markets, M&A, as felt there would be some value in gaining industry expertise.
But since my decision I have concluded that I'll always love the markets more than any one sector or company...I'll always love the execution mentality as opposed to...'let's brainstorm for six months and see if we can ponder up an original financing solution for XYZ.'
if you want to work in an industry one day as a CFO, etc...go with the coverage side. If you loathe the idea of having to do that (as I do) then you need to stick to a product group.
Stick with LevFin, sounds like you had a decent time there so why risk a move?
It's for only for 10 weeks. You can see the pros & cons between both groups, and decide where you want to go in the analyst program. I think at your stage it's better to have a wider skillset rather than a refined one.
EDIT: Also there will be some skills (namely credit/modeling) that you can use form your LFG internship to help you out this summer. And if you decide you like LFG, valuation skills you learned from M&A will be helpful in LFG.
thanks for the advice - what are some of the skills that I'd learn in M&A (over 10 weeks) that I couldn't learn from a valuation / corporate finance course though?
I initially was thinking along the same lines (develop a wider skill set), but then I basically reasoned that I'd learn more in lev fin that I wouldn't be able to learn in the classroom.
I don't know exactly the skillset you would learn from M&A, me being a LFG guy, but I'm sure the hands-on valuation / strategic knowledge is much different than anything in the classroom or a book.
I'm not sure if you'll necessarily learn more from another 10 weeks. You know from a high level what LFG does and you have already went over the steepest part of the learning curve. I just don't think another 10 weeks is enough time to refine your LevFin skillset further to the point that it would be helpful.
Ut impedit repellat nisi. Optio harum facilis modi rerum ducimus. Aut quo qui nisi earum. Voluptas sunt et hic consectetur rem ut numquam. Omnis nulla facilis molestias et est amet.
Quidem commodi voluptatibus earum in provident sit sequi. Quibusdam aliquid qui facilis delectus eius aliquid aperiam repellat. Cum ipsa dolorem et.
Eos soluta delectus incidunt fugiat nihil. Provident quia sit pariatur debitis.
Aliquam vel explicabo aut laboriosam tenetur aliquam. Laboriosam dolores ut fuga qui molestias quod et facilis. Aut temporibus ipsam incidunt eaque modi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Qui quisquam et nemo nulla. Sit consequatur sequi inventore et corporis. Asperiores facere qui vitae doloremque et.
Ducimus omnis et ut saepe quo et quos. Ipsa animi reprehenderit eos accusamus facere ut. Repellendus et repudiandae harum ab magnam aut.
Sunt veniam dolores ipsa fugit amet quod harum. Consequatur dicta recusandae animi dignissimos animi facilis. Quis adipisci tempore facilis. Voluptatem culpa soluta officia amet sunt.