thanks kevin. i also want to switch to the corporate finance wings of these firms, but they all require financial modelling experience, which i don’t see much of in audit. not sure how to get around that either…
Those are tougher…the corp fin group with Deloitte was also VERY small and I think only in a few cities, one of which wasnt Deloitte. I have friends in the M&A Advisory at E&Y, Deloitte, and PwC so I am always asking them how the market looks. Other than speaking certain languages even last week I heard give it a few more months and maybe. Even though the Deloitte guy is relatively busy, but he does mostly Oil and Gas.
i guess I am all over the place but i will make it clear. end goal is to get into private equity. what i was thinking is based on my experience in audit, the next logical step was due diligence advisory (for which you said they like ex-auditors). The managers in my practice (and former directors) all end up in PE firms. this is the back-door route but i think its a decent option. the problem is what i already mentioned… no one is hiring right now. i am just trying to see how else i can get to my end goal… PE.
honestly due diligence is bullsh*t. when i interviewed i saw their reports and scope of work and its really a rubber stamp on deals which the bankers/PE guys have already come up with a purchase price and analyzed profitability through several different scenarios. it doesn’t even add much value to the client.
You speak any other languages? I think this would be your best bet to get into PE, but that is still no sure thing. It can still be tough, even though you meet a lot of connections because of the customers. I was looking at going into Advisory with Big 4, then things slowed up and I also became a manager over central america and latin america at my company and have liked the work (I really like the travel I do) so I am basically going to hold off on even bugging my friends and/or contacts for at least a year (trying to wait until after level 2). Best of luck. My email is kevin underscore f1 at hotmail .com if you want to email me. I can keep you updated as to what I hear. Again, I am out of Dallas and know some people in San Jose (Partner) and NY offices of PwC and Miami E&Y.
Yeah, it isnt about valuation, which can still make it tough to get into PE. They dont always view you that favorable…from people I spoke with. I would disagree to the value of the clients, only because the accounting and underlying assumptions do make a difference on the inputs for valuation. But to each his own.
pacmandefense Wrote: ------------------------------------------------------- > jond2062 Wrote: > -------------------------------------------------- > ----- > > I currently work for a Big 4 firm as an analyst > in > > their valuation group and it seems to me there > is > > quite a bit of misconception surrounding > > compensation, hours, etc. I can obviously only > > speak on behalf of one of the Big 4, but base > > compensation is definitely better than audit or > > tax and probably approaches the base for an IB > > analyst. Bonuses, however, are quite a > different > > story. A bonus for an analyst ranges from > 10-15% > > in a good year, with 20% in a spectacular year > > being possible. > > > > Hours vary based on projects, the M&A market, > and > > time of year. From January to April, I > probably > > averaged 50-55 hours a week, but over the > summer > > it’s been 40-45 hours at the most. On average, > I > > think high 40’s to low 50’s is pretty standard. > > > > Overall, it’s not a bad trade-off at all if > you’re > > looking for something with pretty good > > compensation and significantly less hours than > > banking. It’s more a decision of your interest > in > > the work and your long-term goals. > > what were your credentials? are u in m&a advisory? I work in the business valuation group and came in directly out of undergrad. I had completed Level I prior to starting, but I was hired well before I passed.
whodey Wrote: ------------------------------------------------------- > jond2062 Wrote: > -------------------------------------------------- > ----- > > I currently work for a Big 4 firm as an analyst > in > > their valuation group and it seems to me there > is > > quite a bit of misconception surrounding > > compensation, hours, etc. I can obviously only > > speak on behalf of one of the Big 4, but base > > compensation is definitely better than audit or > > tax and probably approaches the base for an IB > > analyst. Bonuses, however, are quite a > different > > story. A bonus for an analyst ranges from > 10-15% > > in a good year, with 20% in a spectacular year > > being possible. > > > > Hours vary based on projects, the M&A market, > and > > time of year. From January to April, I > probably > > averaged 50-55 hours a week, but over the > summer > > it’s been 40-45 hours at the most. On average, > I > > think high 40’s to low 50’s is pretty standard. > > > > Overall, it’s not a bad trade-off at all if > you’re > > looking for something with pretty good > > compensation and significantly less hours than > > banking. It’s more a decision of your interest > in > > the work and your long-term goals. > > > > What’s your travel %? I came from Big 4 audit, > really liked the frim and the work, I could even > take the crazy hours but the travel (~70%) killed > me. Business travel in no way equates to leisure > travel, I hated constantly living out of a > suitcase and leaving home every Sunday > afternoon…and that was before I was married or > had a kid. I can’t even imagine flying every > week now, it would be a nightmare. Travel time for an analyst is less than 5%. As you move up, it increases, but even as a senior manager you wouldn’t be traveling more than 20-25% of the time. If you work in fixed assets or real estate valuation, however, you do travel quite a bit more.
how is the hiring for Accounting MS students done? do they come in at a different level?
How do you see skills obtained on big 4 audits adding value to P/E diligence work, especially with the CPA/CFA? It’s something that I’ve been looking at pretty seriously, I’ve read a number of due diligence and investment recommendation reports as part of P/E firm audits, and it seems pretty similar conceptually, more focus on financial analysis rather than accounting obviously, but overall nothing really that complicated. It seems all the P/E firms around here only hire MBAs from Wharton or Kellogg though, even for the low positions.
pacmandefense: Unfortunately, I don’t think that we would treat somone with a masters in accounting much differently than someone with merely an undergrad degree (assuming they have the same level of valuation experience). While accounting knowledge is very valuable, the extra value-add from an accounting MS is much more relevant to a position in the audit group. Long story short, you might be able to swing an analyst II position, instead of an analyst I, but unless you have some type of relevant finance experience you’re not going to be able to come in as a senior analyst or a manager. whodey: I think those who work in due diligence/transaction support roles gain pretty valuable experience, but they definitely aren’t deal makers. P/E firms often hire the Big 4 to do detailed due diligence that is beyond the scope that you would typically go if you were doing due diligence on the P/E firm’s side. I think a lot of P/E firms are starting to hire Big 4 due diligence people to be a part of their internal teams. I don’t work in this group, so I can’t add tons of detail. But from what I have discussed with co-workers this seems to be the norm.
jond2062 Wrote: ------------------------------------------------------- > whodey: I think those who work in due > diligence/transaction support roles gain pretty > valuable experience, but they definitely aren’t > deal makers. P/E firms often hire the Big 4 to do > detailed due diligence that is beyond the scope > that you would typically go if you were doing due > diligence on the P/E firm’s side. I think a lot > of P/E firms are starting to hire Big 4 due > diligence people to be a part of their internal > teams. I don’t work in this group, so I can’t add > tons of detail. But from what I have discussed > with co-workers this seems to be the norm. I just talked to a manager in Big 4 TS. He pretty much echoed the comment above. Due diligence aren’t the deal makers, but they get extensive experience evaluating acquisitions on behalf of PE firms. A lot of Managers and Directors in Big 4 TS end up getting hired by their PE clients. Networking opportunities for TS people, especially in the PE world, is enormous.
I can verify this as well, PE loved a lot of the tax guys they worked with as well and hired some of them from the firm.
As an ex-audit guy…I’d suggest that you should jump ship immediately. The hours suck (I was doing 90+hrs w/ busy season clients in the Winter, Spring, & Summer (only 70hrs in the late Fall). After only getting around 2-4hrs of sleep a night for a year (due to CPA & CFA studying), my mentor indicated that I should leave the Big 4 company which was raping me of my life (while depositing very little in my bank account) to take any job that would pay me $, even if it was a bs position. I took his advice, took a bs position, passed my exams…best thing I ever did. Stop waiting for Momma PWC, D&T, E&Y, etc. to take care of you.
one of the people that helped me most with my PE interviews works in M&A advisory at one of the big 4. i’m sure when it’s his turn to jump to PE, he will be able to get it done. he knew a fair amount more about the hardcore financials behind deals than a lot of my friends that did banking. it’s too bad for people in transaction accounting that PE doesn’t do more direct hiring out of their field…either that, or my friend was just really good at what he did.
I will be Joining as a CA Article in the " Transaction Advisory (Due Diligence) Department " in my accounting Firm " ASA & Associates LLP " from Dec 2 , 2013.
Pretty excited about it 
is that a dell customer service joint?