In the midst of the current economic, political and cultural uncertainty, there seems to be a common reactionary response – to freeze. At Lancor, we are noticing this pause in hiring due to new M&A activity. However, we are also seeing a meaningful increase in new hires as Private Equity (“PE”) firms look to upgrade existing talent. Attracting and keeping top talent is the #1 issue in private equity. So, when deal flow dips, it allows firms to generate more alpha through partnering with the best executives.
For those who are actively looking for new roles in this climate, my advice is to adopt a proactive – not reactive – approach. The executives who are currently landing jobs, are doing so by leveraging their expertise and network. They are coming to the table with insight gleaned from years of working in specific industries. They can share that information to benefit PE firms looking to invest in the sectors where these executives have meaningful experience. When an executive adds an angle on a potential deal, they are showcasing how much they can offer a team or firm. They also garner more equity which then leads to great, nonlinear compensation.
Another benefit of the current slower M&A market is that a potential deal, with an operational deal angle is more likely to get noticed. In busier markets, PE firms have 100 (+/-) deals presented to them each month. Therefore, they often won’t entertain anything other than what they perceive as sure winners (usually with executives they already know).
Part of our work at Lancor, is making introductions between executives and PE firms, with the guiding principle of uncovering these differentiated deal angles. We are currently noticing a meaningful interest in establishing new executive connections – especially when these connections can prove they think like owners /principals. As a result, our clients are hiring dynamic executives (both with and without historic PE experience). They are also creating new relationships that will benefit them in the long run.
We have a very well-traveled path to help executives find their perfect fit. When everyone else is sitting on their hands, Lancor clients and executives are continuing to move forward. We’re ready to help CEOs, CFOs and other C-Suite executives get in front of the next wave.