[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Boring_Business [@BoringBiz_](/creator/twitter/BoringBiz_) on x 68.6K followers Created: 2025-07-07 01:38:07 UTC Unsolicited advice on what makes someone a good junior associate on the buyside I always receive this question in my DMs, so thought I would put together a few traits that I have seen Feel free to add on in the comments if you have any thoughts Ability to absorb information very quickly As an Associate, you are digging through CIMs and VDRs with lots of data, often with short timelines to indications on transactions. One of the core skills here is what I call being able to "separate the substance from the noise" A bad Associate will spend countless hours digging through every small detail and wasting useful hours + resources on things that dont make a difference The best Associates regularly follow this routine when digging through data rooms: (1) Quickly skim through the CIM + model (2) Identify the key drivers of the business (as in what factors drive volume x pricing and costs) (3) Isolate the 4-5 factors that you need to get comfortable around in order to underwrite the business (4) Dig into the VDR for data around those 4-5 factors (5) Identify the thesis and risks, and data required to get comfortable around those factors As you do this, many deals will fall apart because you will identify factors that you would never be comfortable with. Maybe its customer concentration, maybe its sole supplier risk, maybe its macro economic conditions, or just the unit economics in general The best Associates minimize the hours that a VP / MD needs to dig through the deal to identify factors that move the business. If something looks like a kill, they can identify it early and save countless hours their seniors would have had to spend looking through it This is one of those skills that you get better at with more experience. The longer you do it, the more you understand what matters to your firm when underwriting a deal I would argue, this is also the core skill that makes someone a good investor. Learn to separate the substance from the noise Asking the right questions Good associates know what questions to ask. This is harder than it sounds. During a deal process, companies and bankers have limited capacity to get you answers you need Bad associates will spend their time putting together a XX page DD list that they will never receive proper answers to. Even if you do receive it, you are killing precious time that the company will need to get back to you Remember, once the process begins - it is usually the investor who is on a shot clock. Especially true for larger size transactions, but any banker led process will feel this way even in down markets As an Associate, it is important to recognize what is worth asking and what is not. Only ask the questions that move the needle on your underwriting thesis. Before asking a question, a good thought process is: "will receiving the answer to this question change how I think about the risk is going to be priced in this opportunity?" There is no riskless investment. The question is if you are being paid to take the risk in any given investment. Thats what DD is supposed to inform you on. Focusing on the things that matter will also save yourself a lot of time. Obviously, VPs and MDs may make the final call here, but my advice is to learn to think like an investor in this way from early on Collaboration Working on a deal means third parties are constantly in your inbox and phone. This includes accounting teams sending you the QoE and audits, lawyers asking to call about terms in the company's customer contracts, bankers sending you the latest set of bids on a process you hired them to run Bad associates become unorganized during fast moving processes. They lose track of emails, deliverables, and often forget to follow up with third parties on key inputs to the underwriting Being organized and being able to represent your company well matters a lot. Also good to remember that you will repeatedly work on transactions with some of the same firms. Many of these third parties will also represent the other side on some transactions Reputation matters a lot. It is a smaller world than people think, and the best Associates are able to recognize that and work accordingly Being a good speaker / salesperson As you "grow up" into your role, VPs / MDs start expecting you to take on more responsibility. Instead of simply being the note taker during negotiations, you will have to start speaking and presenting in front of very informed audiences, including CEOs and Boards in some cases Internally, you will have to sell and defend your numbers to your investment committee. Come promotion time, you will have to sell yourself on why you deserve it vs the next guy Seniors need to feel confident in your ability. This comes from a combination of working hard and being able to sell yourself very well to your own team The ultimate sign of a good speaker is someone who can articulate complicated ideas in a precise manner. This comes with practice. If you are an Associate, my advice is to put yourself in uncomfortable situations and raise your hand to present as much as possible Even if your MDs dont offer, go out of your way to ask for sections of the investment memo that you can present to your committee. This will help build up confidence and get you reps for a crucial aspect of the job XXXXXXX engagements  [Post Link](https://x.com/BoringBiz_/status/1942035365310939200)
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Boring_Business @BoringBiz_ on x 68.6K followers
Created: 2025-07-07 01:38:07 UTC
Unsolicited advice on what makes someone a good junior associate on the buyside
I always receive this question in my DMs, so thought I would put together a few traits that I have seen
Feel free to add on in the comments if you have any thoughts
Ability to absorb information very quickly As an Associate, you are digging through CIMs and VDRs with lots of data, often with short timelines to indications on transactions. One of the core skills here is what I call being able to "separate the substance from the noise"
A bad Associate will spend countless hours digging through every small detail and wasting useful hours + resources on things that dont make a difference
The best Associates regularly follow this routine when digging through data rooms:
(1) Quickly skim through the CIM + model (2) Identify the key drivers of the business (as in what factors drive volume x pricing and costs) (3) Isolate the 4-5 factors that you need to get comfortable around in order to underwrite the business (4) Dig into the VDR for data around those 4-5 factors (5) Identify the thesis and risks, and data required to get comfortable around those factors
As you do this, many deals will fall apart because you will identify factors that you would never be comfortable with. Maybe its customer concentration, maybe its sole supplier risk, maybe its macro economic conditions, or just the unit economics in general
The best Associates minimize the hours that a VP / MD needs to dig through the deal to identify factors that move the business. If something looks like a kill, they can identify it early and save countless hours their seniors would have had to spend looking through it
This is one of those skills that you get better at with more experience. The longer you do it, the more you understand what matters to your firm when underwriting a deal
I would argue, this is also the core skill that makes someone a good investor. Learn to separate the substance from the noise
Asking the right questions Good associates know what questions to ask. This is harder than it sounds. During a deal process, companies and bankers have limited capacity to get you answers you need
Bad associates will spend their time putting together a XX page DD list that they will never receive proper answers to. Even if you do receive it, you are killing precious time that the company will need to get back to you
Remember, once the process begins - it is usually the investor who is on a shot clock. Especially true for larger size transactions, but any banker led process will feel this way even in down markets
As an Associate, it is important to recognize what is worth asking and what is not. Only ask the questions that move the needle on your underwriting thesis.
Before asking a question, a good thought process is: "will receiving the answer to this question change how I think about the risk is going to be priced in this opportunity?"
There is no riskless investment. The question is if you are being paid to take the risk in any given investment. Thats what DD is supposed to inform you on.
Focusing on the things that matter will also save yourself a lot of time. Obviously, VPs and MDs may make the final call here, but my advice is to learn to think like an investor in this way from early on
Collaboration Working on a deal means third parties are constantly in your inbox and phone. This includes accounting teams sending you the QoE and audits, lawyers asking to call about terms in the company's customer contracts, bankers sending you the latest set of bids on a process you hired them to run
Bad associates become unorganized during fast moving processes. They lose track of emails, deliverables, and often forget to follow up with third parties on key inputs to the underwriting
Being organized and being able to represent your company well matters a lot. Also good to remember that you will repeatedly work on transactions with some of the same firms. Many of these third parties will also represent the other side on some transactions
Reputation matters a lot. It is a smaller world than people think, and the best Associates are able to recognize that and work accordingly
Being a good speaker / salesperson As you "grow up" into your role, VPs / MDs start expecting you to take on more responsibility.
Instead of simply being the note taker during negotiations, you will have to start speaking and presenting in front of very informed audiences, including CEOs and Boards in some cases
Internally, you will have to sell and defend your numbers to your investment committee. Come promotion time, you will have to sell yourself on why you deserve it vs the next guy
Seniors need to feel confident in your ability. This comes from a combination of working hard and being able to sell yourself very well to your own team
The ultimate sign of a good speaker is someone who can articulate complicated ideas in a precise manner. This comes with practice.
If you are an Associate, my advice is to put yourself in uncomfortable situations and raise your hand to present as much as possible
Even if your MDs dont offer, go out of your way to ask for sections of the investment memo that you can present to your committee. This will help build up confidence and get you reps for a crucial aspect of the job
XXXXXXX engagements
