Hi everyone. In the last few years, I have browsed AF numerous times to get information about career decisions and to read other candidates’ thoughts on the recent CFA exams, and today I finally pulled the trigger and made an account.
My background: BBA Finance, MS Finance, 2015 Level III Candidate in the CFA program; 1 year middle-market IB valuation experience and 1.5 years retail brokerage experience, 6 months internship in undergrad for a long-only university equity fund
My goal: Ultimately, I would like to pursue a career in one of the following areas: equity research, private equity, investment banking, asset management.
The fork: I am preparing for a final interview for a Big 4 business valuation associate position. I have some questions prepared, such as whether I will receive more valuation modeling work and less PPA and goodwill impairment related work, given my finance background, and what opportunities there are to move over to more active roles in transaction advisory services or related groups.
The question: Assuming I receive satisfactory answers to the first two questions, is it reasonable to expect that I can take Big 4 valuation experience and move to PE, IB, or ER in the next 2-3 years. (I say 2-3 years, not because I am looking to jump ship fast necessarily, but more because most of what I have read states that if I stay too long it will make the move more difficult to justify.)
I have done a lot of research on this topic and have read some interesting opinions but no definitive answers. I have found a fairly large number of LinkedIn users that have worked as Big 4 valuation associates in the past and now work in PE, IB, or ER, but an absolute number doesnt give much information about the relative difficulty of the lateral move.
Yeah thats a good point ohai. For now, I think I am most interested in PE valuation/due diligence. I think that I have the potential to get a leg in to a boutique or middle market PE fund if I can network effectively and get a few years under my belt, but I can see how its hard to get into BB IB going this route without dropping everything to go to a top MBA program (I’m 26, so its possible, but probably not gonna go pursue after MSF and CFA).
I thought the business valuation group and transaction services were the same? I’ve seen a ton of roles for business value - transaction services.
I think a general theme with going to a big 4 is that once you’re in that line of work it’s hard to move into something else like equity research or PE. I’ve been working at a consulting company for 7-years and the only jobs, where my resume is actually looked at, are at smaller consulting companies who are try to grow aggressively and need some sort of hybrid FP&A / Corp Dev role.
Not saying my situation applies to yours but in general it’s hard - but not impossible - to move to a different firm that specializes in a different line of work.
Your scenario is similar to what I have seen quite a few people do. I myself work in the Transaction Advisory side in one of the Big 4 and many people have jumped from here to various places in the middle east in between 2-4 years of working here.
The places that people move to include PE, Venture Cap, IBs but asset management isn’t something that relates to this side too much.
Secondly I wouldn’t want you to concern yourself with valuations too much. I mean sure its important but conducting a FDD or a CDD (even the goodwill impairment) is just as necessary a skill for all the places you wish to switch to. Plus, it would give you a way better understanding of the sector and the business dynamics which I personally have felt is a very strong reason why atleast PE and IB groups hire people.
But to the OP - its gonna be slim chances and the banks could care less about your CFA - they are more into big 10 mba as a prime source for associates. although if your current role in the big 4 can lead (through your clients) to an interview in IB or PE or whatever, thats a start.
Most exit opportunities here are with other accounting / advisory firms or on the corporate side (controlling, treasury but also M&A).
Of all the former colleagues that come to mind, only one guy made the switch to PE, and myself to corporate banking.
But here in Germany Big4 experience is rather respected and believe it or not, the vast majority of people working in Big4 (even TS/valuation) don’t necessarily aim at a career in IB / Investments.
Yeah, you definitely can. I have multiple friends who have jumped to IBD and subsequently to PE from Big 4 val. I personally did: audit --> consulting --> PE. At the very least, you could pretty easily get an in-house BD role with val experience + your CFA.
Your success will primarily depend on networking. To get into either PE or IBD as an experienced hire, you’re going to need someone at the respective firm/bank peronally recommend you in order to get your foot in the door. Without any sort of recommendation, I’d say that your chances are very slim.
If you don’t have the network, then get your MBA (provided that you can get into a top-tier school). You could pretty easily get an IBD job fresh out of school with your background. An MBA probably wouldn’t matter for PE if you don’t have prior IBD experience.