What A M&A Investment Banking Associate At Houlihan Lokey Wishes They Had Known Before Entering Investment Banking
David, a Houlihan Lokey M&A Investment Banking Associate, emphasizes that early career success hinges less on industry specialization ("your industry specialty matters") and more on team culture and a supportive boss. The stark contrast between David's low-burnout team and a neighboring team with over 100% turnover underscores the critical importance of prioritizing "a better culture than a better industry" when choosing a role.
Team Culture, Workplace Environment, Mentorship, Burnout, Investment Banking
Advizer Information
Name
Job Title
Company
Undergrad
Grad Programs
Majors
Industries
Job Functions
Traits
David Crosson
M&A Investment Banking Associate
Houlihan Lokey
Yale University
MBA from Kellogg School of Management at Northwestern University
Economics
Finance (Banking, Fintech, Investing)
Finance
None Applicable
Video Highlights
1. Industry specialization matters less than teamwork and a supportive boss.
2. Team culture significantly impacts job satisfaction and turnover; prioritize a positive work environment.
3. When evaluating job offers, thoroughly research the team's culture and prioritize it over industry specialization if necessary
Transcript
What have you learned about this role that you wish someone had told you before you entered the industry?
I wish someone had warned me how little your industry specialty matters and how much your boss and team culture do matter. My industry was business services, and I was an investment banking analyst focused on business services businesses. My last client was a truck dealership, and I now work in healthcare technology.
When you're young, people don't really care about your industry. They care about your potential. They want to know if you are smart, hardworking, can get along with people, and perform well under pressure. That really matters. The area where you do it doesn't matter as much; more important are the people you work with.
My team sat next to another team that covered M&A in a very similar industry. We occasionally worked together because many people confused the two teams; they had similar names. You'd think similar industries and similar jobs would mean similar cultures, but that was wrong.
My team had an incredible boss who cultivated a great environment for us to learn. Unsurprisingly, while I was there for five years, almost no one burned out. When people left, it was because some incredible opportunity showed up that no one could say no to.
In contrast, the other team that sat next to us sounded very similar to us but had a much less supportive culture. This drove a much higher burnout rate among its junior staff. One year, that team literally had over 100% turnover. That means they hired more people than there were positions because so many people quit throughout the year.
I had dumb luck. I didn't realize when I chose to join this team that I was joining such an incredible culture. I would like to think you shouldn't be "dumb." So when you are looking at jobs, try to learn as much as you can about the culture of the team you are trying to join. Frankly, if push comes to shove, prioritize the team that may have a better culture over a better industry.