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The same applies to Special Situations groups (which often include restructuring/distressed M&A) at banks вЂ“ since the skills are so specific, you wonвЂ™t share much work with the industry bankers. Restructuring is a special case because of the specialized knowledge вЂ“ industry bankers canвЂ™t contribute much there.ДЄt most, the industry bankers may weigh in on the comps, valuation, and potential buyer ideas, but the restructuring/distressed M&A team would do everything else (analyzing bankruptcy scenarios, different capital structures, and running the process itself).

Road Show: This is mostly the tech industry banker and his team вЂ“ ECM is busy with many other deals and doesnвЂ™t have time to travel frequently.

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S-1 (or equivalent IPO registration statement): Both groups are involved here.Sales Force Memo: ECM does this since they interface with the salespeople.IPO Process вЂ“ Due Diligence Calls: This is the tech banker.IPO Process вЂ“ Valuation: The industry banker does most of this, with input from ECM on certain assumptions.Initial Pitch: The tech industry banker will supply the comps and do the valuation, also creating the market overview slides the ECM banker will create slides on how recent tech IPOs have been doing and add in the standard IPO process slides.HereвЂ™s an example of what the work split might be for a tech company IPO, between the technology industry banker and the ECM banker: Closing Dinner: If the budget allows for it, you both get to go bask in glory вЂ“ just make sure you donвЂ™t try to вЂњshareвЂќ anything thereвЂ¦.Yes, the M&A analyst is more likely to get the modeling work all else being equal, but itвЂ™s not always so clear-cut. M&A Process: The work here would be split, but not necessarily based on whoвЂ™s вЂњbetterвЂќ at what вЂ“ if the healthcare banker is busy, the M&A banker might take over and do more, and vice versa.Initial Pitch: The healthcare banker would do most of this, including coming up with the right sets of comps and the correct list of potential acquirers.So letвЂ™s say youвЂ™re working on an M&A deal between 2 pharmaceutical companies вЂ“ what would the M&A banker do, and what would the healthcare banker do? ThereвЂ™s a lot of hype over product groups because most people assume that you can get into PE more easily if you start out in Leveraged Finance or M&A.Д«ut thatвЂ™s not necessarily true, and if your bankвЂ™s M&A group is lesser-known and doesnвЂ™t have much deal flow, youвЂ™re better off going to their top-ranked Natural Resources group instead. Product groups, by contrast, get to know specific transactional models вЂ“ merger models or LBO models вЂ“ really well, but wonвЂ™t do much outside that and wonвЂ™t learn an industry in as much depth. The main difference is that industry groups focus more on knowledge of the industry, what different companies are doing, and building operating models (3-statement models) for companies. So what do you actually do in an industry group vs. product group distinction, and the notion that industry groups are 100% marketing and product groups are 100% execution is wrong. So thereвЂ™s more to it than the industry vs. When most people talk about вЂњindustry groups,вЂќ theyвЂ™re referring to coverage groups.

Coverage вЂ“ You do both origination and advisory work here, but youвЂ™re focused on a specific sector such as industrials.Advisory вЂ“ You advise companies on buying other companies.Origination вЂ“ These groups market and pitch for new clients, mostly for financings.There are several sub-divisions of groups at a bank: Technology or Technology, Media & Telecommunications (TMT)Д®xcept that this division is wrong вЂ“ or at least not 100% accurate.Natural Resources ( Oil & Gas, Mining, and Power & Utilities).With industry groups, by contrast, you work within one industry but on many different types of deals вЂ“ equity, debt, M&A, and so on. So if youвЂ™re in the M&A group, youвЂ™ll always work on acquisitions of other companies across all industries and youвЂ™ll build so many merger models that you may get Excel burned into your retina. Product groups always work on a specific deal type, such as M&A or debt, across all different industries вЂ“ examples include: bulge brackets, thereвЂ™s so much fervor on both sides that youвЂ™d almost think war was about to break out.ДЄctually, I lied: itвЂ™s not quite that heated, but letвЂ™s dive right into the debate and see what the arguments for both sides are. вЂњIf youвЂ™re not modeling youвЂ™ll get bottom-tier bonus!вЂќДЄh, yes: the industry group vs. вЂњWhy would you ever take an industry group over M&A or Leveraged Finance? DonвЂ™t you want to buy entire countries when you move into PE?вЂќ

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