M&A Buy-side vs Sell-side

Difference in their career prospects in terms of M&A

Buy-Side vs Sell-Side in Mergers and Acquisitions

If you are interested in having an investment banking job, you often find people talk about the buy-side versus the sell-side. You may not have been asked that question yet, but perhaps you have heard exchanges about the buy side and the sell side. Everywhere you go, there is an attempt to make such distinctions between the two. So, how do these two actually differ.

When you refer to the sell-side, it refers to pitching products like bonds, stocks, or even the whole company. Your job if you are on the sell-side is to make investors buy them.

On the other hand, if you are on the buy-side, what you do is raise capital. You get this capital from investors and from there, you will have to make your decisions as to where you want to invest them and what you will buy.

In terms of M&A, the buy-side revolves around valuing possible mergers and finding opportunities for purchases. The sell-side, on the other hand, may work as a third party trying to find a counter party for the sale of a client’s business.


How Do You Earn Money?

For those who are still deciding as to whether they should be on the buy-side or the sell-side, you may want to know how you can earn money should you choose to be either one of these sides. You either earn money as an investor, yourself, or as the agent of an investor, and therefore earn through salary and commission. Naturally, you have a higher chance of earning as an investor, rather than an agent.

The buy-side is said to be better when it comes to making money as it gives you to earn more especially when the investments have high returns. This appears to be more lucrative compared to earning commission on sales on the sell-side. But when deciding which side, you do not just consider this factor. Keep in mind that there are differences in other aspects. There are differences in the hours, pay and structure of work.


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