Seeking Advice on Internal Transfer from restructuring to M&A (Big 4)
Hello everyone! I’m a recent graduate working in Europe with about six months of experience at a Big 4 firm, primarily in Debt restructuring, Distressed M&A, and Operational Improvement. I’ve been part of some fascinating deals, mainly in the Metals, Industrials, and Defense sectors, with enterprise values ranging from €50 to €100 million. While I enjoy my current role and can see myself eventually pursuing distressed or special situations investing, I recognize that transitioning from a Big 4 may require experience at a larger investment bank to enter that field.
Recently, an internal opportunity has arisen for me to move to the Sell-Side M&A team, which focuses on smaller deals with an enterprise value of €10 to €40 million across various sectors. This move could enhance my commercial skills and provide greater exposure to private equity funds. I also believe having “M&A” on my resume might help me access more roles in investment banking and private equity later on. However, I’m conflicted: is it more important to focus on the team I’m in or the deal experience I’m gaining?
Currently in restructuring, I’m honing solid technical skills and dealing with robust deal flow. In contrast, the M&A team I’m considering hasn’t closed any deals while I’ve been there, and they often handle smaller transactions. I’ve heard from colleagues that the M&A team spends a lot of time on pitches and may not be as focused on learning. Additionally, I worry about switching teams so soon—after only six months—and not becoming truly specialized. If I move to M&A and later wish to return to Restructuring, I might damage relationships with my current team. I’m also concerned that the Restructuring expertise I’m building may not translate well when I eventually move to the U.S. for personal reasons. Lastly, how might my experience in Big 4 Turnaround & Restructuring be perceived if I opt for a corporate role later on? Could it set me on a path toward a CFO position?
I’d greatly appreciate any advice or insights based on your experiences regarding whether this internal transfer would be a strategic move for my career aspirations. Thank you in advance!
One response
It sounds like you’re at a pivotal point in your career, and it’s great that you’re considering the implications of an internal transfer so thoughtfully! Here are some points to consider that might help in your decision-making process:
Skill Development vs. Brand Recognition: Both restructuring and M&A offer valuable skills, but they serve different purposes. restructuring provides in-depth financial analysis, problem-solving under pressure, and an understanding of distressed financial situations—all of which are crucial for certain roles, like PE focused on special situations. M&A roles typically emphasize deal structuring, negotiating skills, and market insights, which can be incredibly beneficial for a long-term career, particularly if you want to move into traditional investment banking or PE.
Deal Flow and Experience: Your current experience in Debt restructuring, while certainly valuable, might be somewhat niche. If the M&A team has not been closing deals recently, that might hinder your ability to gain practical experience quickly. Check if there is an opportunity to get involved in more diverse sectors or larger transactions that could offer broader exposure.
Long-Term Career Path: Think about your long-term goals. If you eventually want to pivot into distressed investing, gaining a robust understanding of how M&A works could be significant. Interviewers often value versatility, and having “M&A” on your resume may open more doors.
Networking and Relationships: If you are concerned about burning bridges in your current team, consider discussing your thoughts with your manager or mentor. They may provide insights or even support your move if they recognize it as a beneficial step for your career.
Geographic Mobility: Your concerns about the localized nature of your Restructuring skills are valid, especially considering your plans to move to the US. Research how restructuring roles are viewed in the U.S. market and whether your experience would translate. M&A, on the other hand, may have more universal applications.
Future Roles in Corporate Finance: Experience in both Restructuring and M&A can be advantageous for roles in corporate finance or even CFO positions, as these roles require a solid understanding of both healthy and distressed companies. If you decide to leave the high finance world, having a diverse skill set can make you a strong candidate for corporate roles, including those in turnaround situations.
In conclusion, weigh the potential for skills development and career trajectory against the risk of feeling too specialized. If you feel that the Sell-Side M&A role enhances your CV while also providing a solid foundation for your goals, it might be worth considering the move. However, ensure you have the opportunity to engage in substantial work within the M&A team. Good luck, and trust in your instincts about what feels right for your career path!