Comments on: Business Valuation Firms: The Best Backdoor into Investment Banking and Private Equity?

By: M&I - Brian

M&I - Brian — Mon, 31 Jul 2023 22:43:21 +0000

In reply to Mike. Thanks. If you can win an offer at a valuation firm, yes, it's a good idea because you can get into IB/PE later with enough experience (even with a lower GPA). I don't know much about Kroll specifically, but I would imagine you can get into boutique and middle-market banks from there.

By: Mike

Mike — Sat, 22 Jul 2023 21:18:25 +0000

Hey Brian ,
Thanks you for an amazing article!
I have a question in regards to the to transferring. I graduated last year from a non-target uni about 1 month ago with a masters in finance, but my GPA is not as great enough to get into IB (I have a 3.4), would it be best for me to join a valuation firm in the hops that at some point down the road i can jump to IB and then eventually PE. Also, what are your thoughts on Kroll would it be prestige enough to get into IB for boutiques (Lazard, Jefferies) if not BB

By: M&I - Brian

M&I - Brian — Thu, 15 Dec 2022 03:35:03 +0000

In reply to KA. It’s possible, but not necessarily the most likely exit (since some groups/firms focus more on operations, and others focus more on finance). But restructuring is very specialized, so you do have an advantage. It’s better to work in the actual distressed/turnaround group rather than insolvency and fraud/asset recovery, yes, but it’s not necessarily “required.” The probability of success is higher in a more relevant group, though.

By: KA

KA — Sun, 11 Dec 2022 00:16:24 +0000

Hey Brian, I graduated last year from a non-target uni with two master’s degrees – with a 4.0 in Economics for the latter and engineering for the former. I’ve done an internship in commercial due diligence at a boutique this year and am looking to go the IB/PE route here in the UK (or maybe even the consulting/PE route because I see that it’s easier to do so in this region). In regard to moving laterally from valuation firms, I have been looking at some opportunities in restructuring advisory at firms such as Kroll/Duff & Phelps and RSM UK/Baker Tilly. Would it be possible to move into RX IB directly from these roles? Also, with regards to RSM, the role seems to focus on insolvency and fraud/asset recovery so would I need to move into the more distressed/turnaround sectors first to be considered for an RX role in IB? Thanks!

By: M&I - Brian

M&I - Brian — Wed, 20 Apr 2022 17:18:50 +0000

In reply to John. Thanks. If you have enough client/deal experience to speak to after a year, start networking and plan to make the switch after a year. Your chances actually tend to go down if you wait too long in the same role before aiming for lateral IB roles because they want people who have some experience but who are still "impressionable," and the perception is that it gets harder to train you the more experience you have elsewhere.

By: John

John — Sun, 10 Apr 2022 17:32:45 +0000

Hey Brian,

I’ve worked in Big 4 Valuation as an entry level associate for about 8 months, but my ultimate goal is to break into Middle Market IB. I’m debating whether to make the switch after a year here or waiting until I’m promoted to Senior (in a little over a year). Do you think the benefits career/resume wise of being promoted before transfering are worth waiting an extra 6-12 months to do so?

Thanks ahead of time for the response, and appreciate all the work you put into this site.

By: M&I - Brian

M&I - Brian — Tue, 15 Feb 2022 02:25:22 +0000

In reply to Sam. Thanks. Lateral jumps between valuation firms can help you move up, yes, assuming that they actually bump your title once you move. But if your main goal is to get into IB, you should just do that, start networking, and apply for IB roles directly. There's no real reason to go from one junior role to another junior role at a different firm if your main plan is getting into IB anyway.

By: Sam

Sam — Sun, 13 Feb 2022 19:46:37 +0000

Hi Brian, this is by far the informative article explaining what we do to the outsider.
I am working at one of the largest independent valuation firm now (as a junior). Given the fact that there is not much valuation firms out there and advancing up is difficult, what are your thoughts on lateral jump between valuation firms? Does it help to accelerate the effort? Or do you think there is no need to jump around plan B’s and instead, i should get prepared and aim for IB? In general, I am planning my mid-long career goal in a sense that my skills being most appreciated and got reflected on my compensation.

By: M&I - Brian

M&I - Brian — Tue, 28 Dec 2021 15:11:15 +0000

In reply to Dimitris Tzannis. Thanks for adding that. I agree with your comments, but in the context of other jobs that provide possible transitions into investment banking, business valuation is a decent choice. No, it's not that interesting, but it beats roles that have absolutely nothing to do with M&A or deal work.

By: Dimitris Tzannis

Dimitris Tzannis — Thu, 23 Dec 2021 20:20:11 +0000

On this topic – I’d suggest folks to steer clear of the public accounting arena (PPA, Goodwill impairment, portfolio valuation). The work itself is necessary, but very dry, demanding, salaries are low, and exit opportunities are decent. Managers and people more senior have no patience for teaching junior staff, there’s an incredibly large amount of turnover, and ultimately your work is anchored towards an auditor’s conclusion. Also – you’re very far removed from the deal process. The work itself is basically verifying that the plug figure (goodwill) is still reasonable, the GPs or LPs investment is properly valued (hint: it always is), or deriving the plug figure yourself (goodwill). If the choice is between BV at a public accounting firm and other opportunities, choose the other opportunities. Hope this helps people.