Accepting a 2nd offer as a safety and reneging just before starting?

Based on the most helpful WSO content, reneging on an offer, especially close to the start date, is a risky move that can have significant consequences for your reputation and relationships. Here’s a breakdown of your situation and the potential outcomes:

Option A: Accept Both Offers and Renege on the Consulting Firm

• Risks:

  • Reneging close to the start date is considered unprofessional and could burn bridges with the consulting firm and your referral connections. This could harm your long-term network, especially if you ever want to pivot back to consulting or work with those individuals in the future.
  • The consulting firm may find out about your IB offer, as industries can be surprisingly interconnected. This could lead to reputational damage.
  • If the IB firm discovers you’re hedging your bets, it could raise questions about your commitment and professionalism.

• Considerations:

  • While it’s understandable to want a safety net, the consulting firm may view this as a breach of trust, especially given the effort your referrals put into helping you secure the offer.
  • Reneging is not uncommon, but it’s important to weigh the potential fallout against the benefits.

Option B: Decline the Consulting Offer Upfront

• Benefits:

  • By being honest and upfront, you maintain your integrity and preserve relationships with the consulting firm and your referrals. This could pay off in the long run if you ever need to reconnect with them.
  • You avoid the stress and ethical dilemma of reneging later.
  • It demonstrates confidence in your decision to pursue the IB role, which aligns with your career goals.

• Risks:

  • If something goes wrong with the IB offer (e.g., visa issues or rescinded offer), you won’t have a backup plan. However, this is a calculated risk that many professionals take when pursuing their top choice.

WSO Insights on Reneging:

1. Burning Bridges: Reneging can damage your reputation not only with the firm but also with your school or network, as firms often report such incidents to campus recruiting or HR.
2. Industry Connections: Both consulting and IB are interconnected industries. Word can travel, and it’s not uncommon for firms to find out about reneging.
3. Professionalism: While some argue that “it’s just business,” others emphasize the importance of maintaining professionalism and integrity, as these traits are highly valued in finance and consulting.

Recommendation:

The best course of action would be to decline the consulting offer upfront (Option B). While it’s tempting to hedge your bets, the potential long-term damage to your reputation and relationships outweighs the short-term security. If you’re concerned about the IB offer falling through, consider discussing your visa concerns with the IB firm and requesting an earlier start date to mitigate risks. This approach shows commitment and professionalism while reducing the likelihood of complications.

Remember, your career is a marathon, not a sprint. Preserving your reputation and relationships will serve you better in the long run.

Sources: 7 Tips on Reneging, Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, 7 Tips on Reneging, Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?