When Hiring Gets Tough, Look To Boutiques
I get questions all the time on whether or not it's "ok to work for a boutique investment bank" rather than a bulge bracket. To those of us who have been in the industry for awhile, this is a somewhat silly question, influenced by too much reading of the Vault Guide and "ranking" of investment banks.
We know that there's far more of a difference between investment banking and nonprofit work (yeah, believe it or not, some people in finance do consider doing it) than there is between Goldman Sachs and Macquarie.
Still, I can understand why eager young prospective bankers might be confused. The bulge brackets certainly spend enormous sums of money each year visiting top universities and luring in college students with their shiny hooks and promises of even shinier bonuses.
And typically, I do advise both college students and business school students looking to break into finance to go to a larger bank, if possible. You simply have a higher probability of getting a good experience at a brand-name bank (this statement has gotten people angry at me before, so I emphasize the probability part of it. You can certainly get a good experience at smaller places as well).
Lately, however, I've been telling more and more readers and prospective bankers to consider middle-market firms and boutiques. In case you've been living in an alternate universe and missed the Bear Stearns meltdown and the all the other, smaller nuclear disasters over the past few months (those would be other banks, even the legendary Goldman Sachs, cutting back on headcount and expenses and creating "Expense Czar" positions), things are not looking good for hiring at bulge brackets lately.
I'd be lying if I said that hiring at smaller firms had not also been affected by the credit crunch and recession; I've seen friends and acquaintances at these places get fired or forced out as well.
However, the magnitude of the problem is less than it is at bulge brackets. You may have seen in financial publications that M&A activity has not slowed down nearly as much in the middle-market as it has in the > $1 billion market.
This, in turn, means that there is still a need for Analysts and Associates at middle-market and boutique firms. While there have been layoffs at these places, there is still ongoing hiring as well.
So don't immediately dismiss a firm just because it is not Goldman Sachs or Morgan Stanley. If it comes down to doing investment banking at a regional boutique or not doing it at all because Bear Stearns imploded and you lost your offer or your job, swallow your pride and take what you can get.
For those who have been laid off from their full-time jobs recently, the same advice applies. Sure, if you have a great relationship with another large firm, go ahead and use that to get your foot in the door. But if you don't, or if your contacts can't do much to help you, don't waste your time: look at smaller places.
Boutiques suddenly look much more attractive when the alternative is unemployment.
Mergers & Inquisitions (http://www.mergersandinquisitions.com) is a career advice blog dedicated to those who want to break into the jungle of finance and swing through it while maintaining their sanity.
Still, I can understand why eager young prospective bankers might be confused. The bulge brackets certainly spend enormous sums of money each year visiting top universities and luring in college students with their shiny hooks and promises of even shinier bonuses.
And typically, I do advise both college students and business school students looking to break into finance to go to a larger bank, if possible. You simply have a higher probability of getting a good experience at a brand-name bank (this statement has gotten people angry at me before, so I emphasize the probability part of it. You can certainly get a good experience at smaller places as well).
Lately, however, I've been telling more and more readers and prospective bankers to consider middle-market firms and boutiques. In case you've been living in an alternate universe and missed the Bear Stearns meltdown and the all the other, smaller nuclear disasters over the past few months (those would be other banks, even the legendary Goldman Sachs, cutting back on headcount and expenses and creating "Expense Czar" positions), things are not looking good for hiring at bulge brackets lately.
I'd be lying if I said that hiring at smaller firms had not also been affected by the credit crunch and recession; I've seen friends and acquaintances at these places get fired or forced out as well.
However, the magnitude of the problem is less than it is at bulge brackets. You may have seen in financial publications that M&A activity has not slowed down nearly as much in the middle-market as it has in the > $1 billion market.
This, in turn, means that there is still a need for Analysts and Associates at middle-market and boutique firms. While there have been layoffs at these places, there is still ongoing hiring as well.
So don't immediately dismiss a firm just because it is not Goldman Sachs or Morgan Stanley. If it comes down to doing investment banking at a regional boutique or not doing it at all because Bear Stearns imploded and you lost your offer or your job, swallow your pride and take what you can get.
For those who have been laid off from their full-time jobs recently, the same advice applies. Sure, if you have a great relationship with another large firm, go ahead and use that to get your foot in the door. But if you don't, or if your contacts can't do much to help you, don't waste your time: look at smaller places.
Boutiques suddenly look much more attractive when the alternative is unemployment.
Mergers & Inquisitions (http://www.mergersandinquisitions.com) is a career advice blog dedicated to those who want to break into the jungle of finance and swing through it while maintaining their sanity.
