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Accurate. If you’re M&A our jobs really aren’t that difficult.
Understanding a process is fairly straight forward then a lot is just handholding clients and project managing a process with the occasional model (templated) and IM (also standard format for 90% of them).
The hardest part of IB isn’t the technicals, it’s the selling aspect… a middle schooler can probably do our work but do they have the EQ to bring in revenue for the firm? Maintain relationships?
What makes IB hard is maintaining a very low error rate in high stress, low sleep conditions and often under tight timelines. But yes we’re just doing regular corp finance stuff with a very healthy dose of process management and selling
You learn how to manage an M&A process and you get really good at that. Please enlighten me on how FDD / valuation is more technically difficult?
As someone who has seen a lot of the work valuations teams do, it’s no anymore technical than what we do. And we actually have to build the underlying operating model. Agree FDD / accounting is more technical
IB is more relationship, idea generation, and asking how high when the client asks you to jump than it is technical. There is some creativity and hand-wavy math when it comes to technicals, and a lot of the time it’s trying to back solve to an answer we want to see (that we can reasonably justify)
Yeah IB isn’t hard it’s just a lie “Big IB” tells everyone to justify the fees they make. The one thing I will say is it is sooo reliant on soft skills and relationship building I.e. “selling” to very sophisticated and important people if you will. That is a skill that most people don’t have. Not only that but managing your clients emotions and representing them well but also playing the other side and keeping the buyer at the table. It can be very tricky.
You get use to it. It’s not for everyone.