I might be interning at a business broker firm this summer and I was wondering if it's good enough to settle on as a freshman heading into summer or should I keep looking for for something at a m&a advisory firm or very small IB firm.
| +293 | What happened to west coast talent? | 124 | 8s | |
| +59 | Seeking Advice for Incoming Freshman | 22 | 23h | |
| +59 | CVP partners making 8 figures??? | 40 | 19h | |
| +51 | How is working 50/60 hours a week considered relaxed? | 12 | 9m | |
| +47 | IB compensation Pulse check | 19 | 2d | |
| +34 | Healthcare to Healthcare Investment Banking | 27 | 3d | |
| +31 | May 2025 Grads Full-Time Recruiting | 45 | 1d | |
| +28 | Intern hours | 10 | 5h | |
| +25 | Pros and cons of “low prestige” banks? | 8 | 7s | |
| +22 | S79: Using Knopman & Kaplan…good idea? | 6 | 5d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Hey Boi, I'm here because nobody responded to this thread after a few days...maybe one of these resources will help you:
Fingers crossed that one of those helps you.
Bump
I think it’s a good opportunity because you should get valuation experience and deal exposure. It’s like investment banking for your local car wash or dental practice.
It seems like they use a simplified DCF model for their valuation. So it would be some good experience for the summer? I'm still not sure if I should settle or keep networking for a gig at a m&a advisory firm, thoughts?
It's a great gig for your freshman summer if you ultimately wanna do IB
I have to disagree with others. On the one hand, it is "deal-related" experience if you spin it the right way to someone that wouldn't otherwise know better. On the other, by and large, the industry is full of sleazy salespeople that don't know a damn thing about valuation, process, etc.
Think about the model for a second: broker goes and meets with as many tiny business owners as possible, convinces them to let him list them, has the seller send them information that they literally cut and paste into a template (similar to business valuation at accounting firms) with no substance or individuality, plasters them on websites/email spams everyone he can find and charges fees that often make real estate brokerage fees look like a deal. And when an eventual buyer comes along, he puts the onus on business owner to satisfy diligence, negotiate the purchase agreement (with the help of whatever small, shitty lawyer the seller has) and prepare for closing.
That being said, I think your initiative as a younger student is admirable. But, I wouldn't focus on trying to leverage your experience at these brokers into IB, but rather focus on the qualitative elements that you acquire, either at this firm or throughout college (e.g. good communication, writing skills, responsiveness, taking initiative to make a first attempt without asking for help, etc.).
DISCLAIMER: I am obviously bias and think business brokers (as an industry) as scum. But, there are obviously some exceptions and groups that tend to do things the right way.
Thank you for the reply. I can definitely see where sleazy people can come into play although the guy I've met seems like a really nice guy—I was recommended to him by some m&a advisory guys who were also really knowledgeable and nice. Looking at what he does it does seems relatively simple, at least compared to IB or M&A Advisory, which is partially a reason why I asked this question. The offer still stands until I finish this year so I will try to contact some more m&a advisory firms around me.
Fair enough. Use your judgment and if you've done diligence on this opportunity (which you have) and it seems like a good opportunity, it probably beats many alternatives. If you can find an internship at an investment bank (beware of the usage of M&A advisory, as there are plenty of M&A advisors that are merely business brokers), it would be more educational and better prepare you.
Since you do you have a very good knowledge of the business brokerage business, I was wondering if you could help fill any gaps I have. From visiting his office and speaking to him it seems he and his partner find businesses that want to sell, gather all relevant financial documents, create a simplified DCF and value the company as well as predict future cash flows, and then form all of that into a document that they give to verified buyers. Is there anything else that a brokerage firm would do that I should know?
The DCF is done for valuation purposes so that the owner can come to a definitive decision on sale price/listing price. This differs from IB because in an IB process, you aren't publicizing a price.
Brokers, like investment bankers, are in charge of the sale process. Brokers distribute NDAs to interested parties and may vet them, depending on the circumstances. Brokers help facilitate information flow (similar to IB during due diligence) between prospective buyers and the seller.
The barriers to entry is low which invites many not-so great M&A advisors. But calling the entire business brokering industry scummy is a stretch...
I personally built a Real Estate portfolio sales M&A shop while in final years of Undergrad alongside seasoned RE Brokers who have great buy-side connections.
I built my shop around ex-REIT, ex-IB, and ex-CRE guys. I made it a mission to ensure my shop gave high quality service.
We were also very software-heavy in the back-end side of our firm.
We also took the cashflow every year and put it back into the advisory business but we also took the 2nd half to build out a property management business.
Doing all this allowed me to create a CRE advisory firm that transacted on over $2B+ in 5yrs averaging 2% commissions per year . Then I sold the firm to a larger CRE company at a > 6X multiple with a 85% ownership stake.
Goes to show that not all players in an industry are sleezy.
Now, I am a full-time CRE investor in my mid-20s. I buy plazas, medical office buildings, apartments, & Industrial assets.
Did a business broker/LMM internship this school year as a freshman. Definitely a good opportunity because you learn about the deal process and get the basic modeling experience. Great talking point in interviews as well since that will most likely be the first thing the interviewer notices. Its very small deals but better experience than what most freshmen are doing in the summer (flipping burgers, tutor, etc)
Do you think it will help you for SA recruiting/Do you think it's good enough for SA recruiting?
Of course it will. Make sure you are able to talk about what you did
Dignissimos doloribus est odio hic illo molestias dolorem error. Dignissimos ea eligendi dolores beatae quod. Est quisquam enim ipsum veniam sed quia ex. Aut eius aut consequatur et officia dolorem rerum. Earum illo iusto eos consequatur distinctio. Velit asperiores aut deleniti sit soluta ratione vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...