While the dust from the banking collapse is still settling and uncertainty lingers in the financial world, you need to be smart and focused in your search.
This article discusses where and how to seek M&A Jobs.
Multi-billion dollar deals attract the media frenzy, but as David Rubenstein of Carlyle Group said in a recent interview there will be "no $10 Billion L.
B.
O.
anytime soon.
" Board of Directors as well as lenders are still to afraid to make large bets.
The economic and regulatory future is too uncertain and the memories of Lehman-brother-like bankruptcies are still all too real.
Instead, focus on the middle market firms: independent advisors who target $100 million to $1Billion transactions.
There is (almost) unanimous consensus that M&A middle market activity will pick up in 2010 and consequently generate many M&A jobs.
The optimism is justified by:
- Pent up demand for middle market M&A as the activity came to halt in 2009.
- Private Equity firms which focused on operational improvement of their middle market portfolio companies will be looking to exit to return money to shareholders
- Because of limited economic growth, many companies will decide to expand through middle market acquisitions rather then organic growth
Hiring at middle market firms differs from the traditional bulge bracket recruitment.
While the more established firms follow the traditional recruiting calendar, many middle market M&A shops hire on ad hoc basis.
In addition, while the Bulge Bracket firms spend a fortune on comprehensive training program, the smaller firms hire people that already have some experience or at the very least instill the confidence that they are able to learn on-the-go.
Your hunt for M&A jobs should hence have a twofold strategy: First, you need to network extensively.
Everyone contacts the more established firms but you should go a step further.
Contact the lesser known (e.
g.
regional or niche-focused) firms.
They will be more willing to talk since they do not get inundated with help-me-get-a-Wall-Street-job requests.
Even if someone does not have an opportunity for you or you decide that you want a more prestigious name on your resume, you will learn about the industry and you will get more comfortable networking.
A word of advice on the networking part: be a smart networker.
Ask educated questions.
Read through the website of the firm before you talk to anybody there.
Have knowledge of what is going on in the industry - that includes reading publications such as Wall Street Journal and Dealbook.
Be upfront: "I am looking to get an M&A job and would appreciate 10 minutes of your time.
" Have specific questions and listen.
Be positive, appreciative, and ooze with passion for the job.
Second part of your strategy is to actually have skills to hit the ground running.
If you never had an investment banking job, you have to go an extra 5 miles to instill the confidence in bankers.
Buy 2 or 3 different guides that will guide you through interviews for M&A jobs and investment banking career in general.
Dedicate yourself to solving the problems and understanding the material.
The theoretical knowledge will be just a building block.
You will have to take what you learned and develop tangible experience that is applicable to Mergers and Acquisitions jobs.
Volunteer for an unpaid internship at a regional shop or a small business broker.
Help out a finance professor at your school with modeling for research.
Do whatever you can to get a live experience building and understanding financial models.
One can tell very quickly if a candidate has solid technical skills.
Equipped with the knowledge of finance and accounting as well as tangible modeling experience, you will have valuable skills to bring to the table.
Yes, the clouds of uncertainty are looming over Wall Street.
That does not mean that you should give up and not pursue investment banking career, it just means that you have to work smart and be prepared when looking for M&A jobs.
Mergers and acquisitions experience, especially early on in your career, will give you tremendous boost professionally.
Thanks to a very tangible experience, opportunities will open for you couple years down the road.
Whether it will be in investment banking or other field, whether in an office in the US or working as a freelance consultant from a beach in Thailand, M&A jobs that you had will be building block for an exciting career.