IB vs. IM

Question

Anyone know which field is tougher to break into coming from a Big 4 CPA/corporate finance background, or just in general? Equity research is the type of role I'm confident I'd have a passion for - but am wondering if that passion should be weighed against the slightly higher chances of landing an IB position instead. Thoughts?

bipolarbear · Answer

Ummm... ib is generally more difficult to land. in im, there will generally be more im positions available however the "type" of work in im varies greatly. of course "im" at a top hedge fund is different than doing product analysis at a retail mutual fund

glettian · Answer

Thanks for the response. Another factor I'm considering in going for IB is that should I fail in my quest to land a position in that field, I would still have the option of going for managerial finance positions, which is similar in nature to what I do now. Should I recruit for IM, it would be a lot harder to leverage why I did my focus and immersion in that subject should I apply to managerial finance positions.

bipolarbear · Answer

i don't think it's a matter of choosing which type of position to go for. most ib and im positions will be very similar and you will be completing similar tasks (dcf models, comps, meeting with clients...etc). during interviews, the questions asked will nearly be identical, especially on the technical aspect (a company has 3x ev/ebita, if its d/e is .7 and its cash flow is 10m, what's an approximate...etc). the behavior questions will also be similar. one big difference may be that during im interviews you'll be asked a lot more about what stocks you like and will need to pitch the pick.

especially in this economy, you'll need to apply to many finance positions and hope to land just one. some ib, some im, maybe some s&t, mc, vc...etc. while you'll need to focus most of your effort on finance, you should practice case studies and other areas just in case finance doesn't pan out. it's always good to have more options

especially in this economy, you'll need to apply to many finance positions and hope to land just one. some ib, some im, maybe some s&t, mc, vc...etc. while you'll need to focus most of your effort on finance, you should practice case studies and other areas just in case finance doesn't pan out. it's always good to have more options

3underscore · Answer

Fundamentally and totally disagree with Bipolar bear.

Banks will have associate summer classes in the hundreds for IB. IM is incomparably smaller, and often does not come with a commitment to pick anyone up at the end of the summer.

For reference, the HF manager I spoke with yesterday told me he would never recruit anyone with less than 10 years directly applicable experience. And IM isn't just DCFs etc as it is often a more fundamental viewpoint on the economy (hello - fixed income funds, welcome to DCF). There is much more to it than stock picking, the relationships and business drivers are completely different to IB.

Further, applying for everything at school is a terrible strategy and will be near impossible to do. On graduation, maybe. You will get crushed if you are trying to do S&T and IB - you can switch (maybe) but you can't do both. Too many simultaneous events, too many HR people who talk. As for adding VC and MC in there, and you are moving on to sheer lunacy as far as your recruiting load is considered.

Im summary, everything that Bipolar bear said I disagree.

fatb · Answer

Pretty much what 3underscore said....
Keep in mind that sell side is easier to get into than buy side, which makes IB & sell side research analysts positions much easier to get into. In fact, many people have to get through the sell side analyst position first before establishing connections for the HF, etc.

BTW, lifestyles are also quite different between IB & IM... IB you work like there is no tomorrow, while you get to go home at 8PM or so for IM.

ps. all these were discussed at the cornell johnson career panel :D

Audio · Answer

Agree with you, except maybe the multi-tasking part. You can apply for both S&T and IB, but it is incredibly tough to do both. If you're not committed 100% to the cause, you'll be crushed and end up with nothing, and it is indeed a very risky strategy. But I just wanted to mention that it IS doable, although not recommended. I know people who got offers in both businesses at top-notch banks in NYC, but they are few and far between.

3underscore · Answer

Agreed. I have seen it happen (it seems a strange thing not to be able to choose between, but that is for the individual). It is a really really brave move and shouldn't be taken lightly, as it is really demanding to carry out.

IB vs. IM

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