Derivatives or M&A? Forum

[BrooklynLaw16]

I'm trying to decide whether to take a Derivatives class or an M&A class. Some background: I'm a 2L, LR, going to a v50 this summer. I'm very interested in corporate and securities work, and my note topic is on broker-dealer regulations. I'm not sure if either or both of these classes will be offered next year, they don't always repeat classes every semester and there's really no way of knowing what will be offered. My initial thoughts are that Derivatives are highly specialized instruments, and thus, constitute more of a niche market; while M&A is more common, especially in a bull market. What am I more likely to actually use in practice? Which of these subjects would be more useful prior to starting my SA? Thanks.

Edit: due to my credit load, I can't take both classes this semester.

[michael2015]

derivatives. I am assuming the M&A class isn't some fantastic practical application class. It will probably just be an overview of BusOrgs/SecReg/Tax etc. Better to take derivates, you'll learn how to do due diligence for M&A as you go and then take the relevant speciality classes (listed above).

[BrooklynLaw16]

Thank you. You're right, it's a doctrinal class, no clinical aspects.

[WHJTMG178]

Thank you. You're right, it's a doctrinal class, no clinical aspects.

Depends what you want to do. Neither class will teach you much about being an associate. Both classes will teach you to speak the language.

[BrooklynLaw16]

So maybe better to rephrase the issue. Which of these areas has more opportunity for advancement and career growth? They're interrelated to some extent, and I would imagine that C&S specialists do both, but is one more of a niche practice, while the other is often demanded by clients?

[WHJTMG178]

So maybe better to rephrase the issue. Which of these areas has more opportunity for advancement and career growth? They're interrelated to some extent, and I would imagine that C&S specialists do both, but is one more of a niche practice, while the other is often demanded by clients?

C&S is kind of like saying you're going into Litigation. Juniors can do a bit of everything, but eventually you'll need to specialize even more. Look at the partners bio's for your firm and see what kinds of deals they do. If there are way more M&A lawyers take that and vice versa. Derivatives work is going to come primarily from financial clients, whereas M&A can come from a much broader range of clients. The class you take now won't impact your career so that's up to you. Transactional stuff just isn't taught at law schools in a way that makes a difference for being an associate.

[DaftAndDirect]

Unless you have a burning desire to do derivatives, you should take the M&A course. It's more flexible than a course in derivatives. M&A knowledge can impress bankers and Fortune 500 GCs. Derivatives knowledge really only impresses bankers.

Edit: Scooped by ^^^^^

[BrooklynLaw16]

Thank you. This was helpful.

[jw316]

So maybe better to rephrase the issue. Which of these areas has more opportunity for advancement and career growth? They're interrelated to some extent, and I would imagine that C&S specialists do both, but is one more of a niche practice, while the other is often demanded by clients?

C&S is kind of like saying you're going into Litigation. Juniors can do a bit of everything, but eventually you'll need to specialize even more. Look at the partners bio's for your firm and see what kinds of deals they do. If there are way more M&A lawyers take that and vice versa. Derivatives work is going to come primarily from financial clients, whereas M&A can come from a much broader range of clients. The class you take now won't impact your career so that's up to you.

Transactional stuff just isn't taught at law schools in a way that makes a difference for being an associate.

If that's the case and someone is unsure between lit and transactional, then is it possible to ignore the typical stuff that one would take (SecReg/Tax/etc. as someone mentioned above) and just take stuff in LS geared toward lit AND not be penalizing in terms of looking for transactional in OCI if they think lit is no longer the way to go?

[Tiago Splitter]

So maybe better to rephrase the issue. Which of these areas has more opportunity for advancement and career growth? They're interrelated to some extent, and I would imagine that C&S specialists do both, but is one more of a niche practice, while the other is often demanded by clients?

C&S is kind of like saying you're going into Litigation. Juniors can do a bit of everything, but eventually you'll need to specialize even more. Look at the partners bio's for your firm and see what kinds of deals they do. If there are way more M&A lawyers take that and vice versa. Derivatives work is going to come primarily from financial clients, whereas M&A can come from a much broader range of clients. The class you take now won't impact your career so that's up to you.

Transactional stuff just isn't taught at law schools in a way that makes a difference for being an associate.

If that's the case and someone is unsure between lit and transactional, then is it possible to ignore the typical stuff that one would take (SecReg/Tax/etc. as someone mentioned above) and just take stuff in LS geared toward lit AND not be penalizing in terms of looking for transactional in OCI if they think lit is no longer the way to go?

You'll do OCI before you really have the opportunity to make this choice. If you want to switch firms during 3L OCI or haven't gotten a job to that point firms might look at you a little weird if you haven't even taken corporations but proclaim a strong interest in corporate work.

[WHJTMG178]

Definitely don't do that. I was specifically referring to the OP's questions about classes and her career. These classes are worth taking to learn the language of M&A or securities or derivatives. But they still won't teach you how to work on a deal, which is what you do as a transactional associate.

[jw316]

Thank you both!

[Lawbro]

Does anyone have any insights as to exit option from working in a derivatives group? The work seemed pretty interesting and it looked like associates got a lot of responsibility quickly, but I'd be worried about how transferable those skills are into well paying inhouse options