Applying for M&A: boutique or investment bank?

Every year, many students and young finance professionals are drawn to M&A. But a crucial question arises when deciding where to apply: should you prioritize an investment bank or an M&A boutique? These two types of firms offer distinct advantages and disadvantages that shape the experience of interns and junior analysts. In this article, we break down the specifics of each, along with their pros and cons.

Understanding the difference between a bank and a boutique

Before making a choice, it’s essential to understand what sets an investment bank apart from an M&A boutique.

Investment banks (Goldman Sachs, J.P. Morgan, BNP Paribas, etc.) have integrated M&A departments but also offer other services such as financial markets (trading, ECM, DCM), research, and asset management. They handle large-scale transactions and have a broad client network ranging from major corporations to governments.

M&A boutiques (Rothschild & Co, Lazard, Messier & Associés, Cambon Partners, etc.) specialize in M&A advisory and provide little to no other financial services. Some boutiques focus on specific sectors like Tech, Healthcare, or Industrials. While some boutiques are independent, others are affiliated with larger financial groups.

Pros and cons of investment banks

Pros: 

• Exposure to large transactions: Working in a top-tier bank gives you the opportunity to participate in multi-billion-dollar global deals. These transactions involve multiple stakeholders and require complex structuring.
• Structured training and fast skill development: Banks offer formal training programs for junior hires, helping them build strong technical skills quickly.
• Strong brand on your CV: Having a top investment bank on your resume is a major advantage for future career moves, whether in finance, private equity, or corporate M&A.
• Diverse career paths: Investment banks provide opportunities to move into different departments (ECM, DCM, Leveraged Finance, etc.) or transfer to another region, especially in global institutions.

Cons

• Less responsibility early on: As an intern or junior analyst, it can be challenging to have a significant role in deals, as teams are often large and hierarchical.
• More specialized work: In banks, you are often assigned highly specific tasks (data research, valuation, presentations), making it harder to see the full deal process.
• Intense workload and pressure: Investment banks are notorious for long hours, with workweeks frequently exceeding 80 hours.

Pros and cons of M&A boutiques

Pros:

• More responsibility from day one: Since teams are smaller, interns and analysts often work directly with senior bankers and play a more strategic role in deals.
• Full deal exposure: Unlike in banks, where work is more segmented, analysts in boutiques are involved in all deal stages: sourcing, valuation, pitch, due diligence, etc.
• Better work-life balance: Although still demanding, hours tend to be slightly better than in investment banking (except in top boutiques like Rothschild or Lazard). Additionally, boutiques often have a more collaborative and close-knit work culture.

Cons

• Smaller deal sizes: Boutique firms usually handle smaller transactions, though some elite boutiques (Evercore, PJT Partners) manage deals comparable to those of large banks.
• Less recognized brand: A boutique’s name might not carry the same weight on a resume as a top-tier investment bank, unless it’s a leading firm like Rothschild or Lazard.
• Fewer internal mobility opportunities: Unlike banks, boutiques don’t always offer rotations to other divisions or international transfers.

Which option best fits your profile and career goals?

The choice between a bank and a boutique depends on career goals and preferred work style.

• If your goal is private equity, both options are valid. However, a top-tier investment bank or a leading boutique (e.g., Rothschild, Lazard) provides the best opportunities. The key is to have a strong brand on your CV that signals rigorous training and broad expertise
• If you want more responsibility and deal exposure early on, a boutique is the better choice
• If you prefer structured training and a strong brand name on your CV, an investment bank is the way to go
• If you seek long-term career flexibility, investment banks offer more internal mobility, whereas boutiques provide a more personal and collaborative environment

Ultimately, there is no universal answer to the “bank or boutique?” debate. It all depends on your career goals, work style, and the experience you seek. Ideally, trying both environments through internships can help make a well-informed decision.

No matter the choice, preparation is key—strong applications, networking, and solid interview performance will make all the difference in securing your desired position! And for this, Trainy is here to help you!