IB corp finance/M&A vs. Big 4 Corporate Finance M&A

I'll be honest I only started looking at the likes of PWC and Deloitte after being rejected after interview by the only investment bank I applied to for an internship
:frown:

Anyone know about the pay packages for corporate finance within Big 4 accountancies. I hear the only way to move into IB from the Big 4 is working in Transaction services so surely this cant be so bad can it?
Plus, I do like the idea of having a professional certificate.
These guys do similar work to Ibankers except working for smaller clients, earning lesser salaries but working lesser hours, so whats the big deal? I've even read that banks are increasingly hiring from the big 4 due to increase in activity. From a long term view, is the opportunity cost THAT great?

Reply 1

Johan C

13

UKstudent

I'll be honest I only started looking at the likes of PWC and Deloitte after being rejected after interview by the only investment bank I applied to for an internship
:frown:

My God this'll spark another debate.

Reply 2

CityMonkey

11

UKstudent

I'll be honest I only started looking at the likes of PWC and Deloitte after being rejected after interview by the only investment bank I applied to for an internship
:frown:

Anyone know about the pay packages for corporate finance within Big 4 accountancies. I hear the only way to move into IB from the Big 4 is working in Transaction services so surely this cant be so bad can it?
Plus, I do like the idea of having a professional certificate.
These guys do similar work to Ibankers except working for smaller clients, earning lesser salaries but working lesser hours, so whats the big deal? I've even read that banks are increasingly hiring from the big 4 due to increase in activity. From a long term view, is the opportunity cost THAT great?

I'm not sure about the exact mechanisms of going from Big 4 to IBs, but professional qualifications and/or MBAs are what I've heard of. From a long term view, you can't tell anything because banks hire when things are good for them and then start off loading staff when things are going badly. The current situation is that hiring is red hot, 2,3 or 5 years down the line that will not necessarily be the case. According to the opinion of some people on TSR, hiring will peak next year or in 2008, and then start going down hill. Just in time for some people here graduating, but by the time you've gone into Big 4 and done your qualification, you might find yourself in the worst of the storm, although thats not to say you won't get a place in IB.

The big deal in the arguement between big 4 vs. IB (which has been extensively argued on this forum in the last day or so) is that you will earn less per unit of time worked in Big 4 than in IB, certainly after the first year. For example, potential 1st year salary in IB is £70k, for Big 4 I believe its about £30k something. Also, prestige of working in IB is higher, and it has a bit more of a "glamourous" lifestyle and image. In IB you're working with some very powerful, prominent and successful businesspeople/companies, in Big 4 you won't on the same scale. Working on, say, the merger of 2 big corporations is going to be a bit more satisfying than working in Big 4, just my personal view and by no means putting down Big 4 staff, companies, clients and/or prospective candidates!

Reply 3

UKstudent

OP

I've heard corporate financiers at the big 4 study as part of their graduate training scheme, obviously in IB there wouldn't be enough hours in the day to fit work and study. But why is it hours in big 4 permit this? are the clients simply less demanding?

Reply 4

President_Ben

15

UKstudent

I've heard corporate financiers at the big 4 study as part of their graduate training scheme, obviously in IB there wouldn't be enough hours in the day to fit work and study. But why is it hours in big 4 permit this? are the clients simply less demanding?

Yes. There's a stalemate among the Big 4 on this area. None of them want to make that leap of offering their client better service. It's punishment for all of them in the long run, I reckon, as clients are small and work according to the Big 4 demands. In banking, the competition is fierce (as the stakes and fees are so high). They have no problem calling up their analysts at 2am to slaughter away at something for 9 hours before the announcing a deal.

I recall Telefonica got the investment banks to run through the entire purchase of o2 within 18 hours having made the call at about 12pm or something and wanting it announced before the markets opened the next day.

Reply 5

UKstudent

OP

Any bonus for big 4 corp financiers? what is the total package at say E&Y after 1 or 2yrs? I heard of a guy at uni makin 32k in pwc's birmingham office, so i could only imagine london would pay better

Reply 6

CityMonkey

11

Yeh London pay would be better, but not by a huge amount. Can't see it topping £40k. I've heard big 4 are not big on bonus, expect maybe 10%? Certainly not the multiple of 100% of base you see in IB.

IB corp finance/M&A vs. Big 4 Corporate Finance M&A

Related discussions

Latest

Trending

Trending

Articles for you