Should I go into FIG M&A?
by
McCarthy95 on March 22nd 2025
Should I go into FIG M&A?
Working within the FIG team at an investment bank will be a unique experience compared to that of the other teams. This article will address some of the features unique to the sector and hopefully help in assessing whether FIG is for you.
Technical.
FIG is renowned for being more technically demanding than other teams and this is due to the nature of the companies you’ll be advising. FIG can be broadly divided into the following sub-verticals: Banks, Insurance, Asset & Wealth Management, Specialty Finance and Financial Technology. FIG encompasses a broad spectrum of companies, some of which can be valued just like normal companies i.e. EV/EBITDA multiples and DCF models, whereas others demand a unique approach. Banks, Life and P&C insurance and Speciality Finance firms are typically balance sheet heavy and are subject to capital requirements. As such, these firms are instead valued off of P/BV multiples, RoE regressions and DDMs. Therefore, the level of technical complexity you’ll experience working in a FIG will be very dependent on which sub-vertical you focus on. For example, if you have a strong FinTech focus your experience from a technical perspective will be very similar to other teams such as TMT or Consumer.
Deal Flow.
Traditionally the deal flow in the FIG sector is strong and they usually generate a relatively large proportion on the IB division’s revenue. Typically, you’ll also have the opportunity to work with a broad range of companies. However, deals can be a little more uncertain and take longer to execute that other sectors; particularly in banking and life insurance where there is high regulatory scrutiny. Acquirers will also be very reluctant to go hostile given the reaction from regulators and governments.
FIG Companies.
