With the competitive nature of investment banking, many students and young professionals aspire to break in. One common path is to work at one of the big 4 accounting firms (Deloitte, PwC, EY, KPMG) and then transition to investment banking. This article will explore how to make the switch from big 4 to investment banking.
Big 4 experience builds transferable skills like financial modeling useful for investment banking
The big 4 firms provide advisory and auditing services across industries, giving exposure to financial statements and modeling. Building models for clients to assess valuations and transactions is good preparation for investment banking tasks like M&A deals, IPOs, and debt offerings that also require modeling skills. This modeling experience and financial analysis from big 4 roles like valuation, M&A due diligence, transaction services are valued in investment banking.
Networking is key when transitioning from big 4 to investment banking
While skills are important, networking is critical when trying to enter investment banking, an industry that highly values relationships and rainmaking ability. The big 4 have deep connections to the banking world that can facilitate introductions and referrals. Maintaining good relationships with superiors as well as bankers in your network will enable you to leverage connections to get your foot in the door for investment banking interviews.
People skills polished in client-facing big 4 roles translate well to investment banking’s demands
Investment bankers work closely with corporate clients on high-stakes transactions and deals. The soft skills built through big 4 client interactions, including communication, relationship management, and presentation abilities, carry over nicely to win over banking clients. Having honed people skills while collaborating with partners, executives and engagement teams at one of the big 4 firms adds to your appeal as an investment banking candidate.
The diligence and work ethic bred at big 4 firms prepares for investment banking’s intensity
The big 4 and investment banks are both known for demanding workloads and high pressure. The perseverance, grit, and hours spent working at a big 4 demonstrate that you can handle investment banking’s grueling schedules and relentless pace. The stamina and mental toughness developed at a big 4 firm signals to bankers that you can withstand the job’s intensity.
With demanding work requirements, investment banks value candidates from big 4 firms who have built financial/modeling skills and people abilities while managing complex client engagements and high workloads. Leveraging big 4 connections and showcasing your diligence/endurance prepares you for the transition.