Understaffed Deal Teams
Why tf are deal teams so understaffed? Are MDs so oblivious to this? Clearly being on 15-20 deals vs scrambling on +40 results in higher quality output, materials, analysis, etc.?
Am I missing something? Is it that hard to find talent? MDs want to keep $$ to themselves? Wouldn't adding more ppl allow the firm to take on more deals and put out better products netting more $$? Makes no logical sense. Someone enlighten me.
15-25 sounds farfetched, would be ridiculous if you're actually on that many. But generally, everyone is understaffed because:
1) it's hard to find good people with experience that want to move
2) it can take 6months - a year to train someone, and no one knows how long the boom will last, so not productive to double the team if by the time people pull their own weight they no longer need extra people
3) average employees can really drag down the team and tend to be harder to get rid of
Are you really saying average employees are dragging down a team lmao You're so deluded
I've seen it happen. Hopefully this is the year the Douche Baggello in our group finally get's a goose egg bonus and fucks off for good.
Pretty easy for it to happen on small teams. Lots of ways it can play out, but one example from a group with ~5 analysts.
OP must be talking per group? Analysts in my group are usually on 2-3 at a time. Or he's talking about how many deals an MD has going at a time? Which 15-25 would also still be way high.
I am saying 1 analyst, 1 associate, 1 VP, and two MDs collectively on over 40 deals. Not m&a but various ipos, pipes, follow-ons, up-listings, bridges, etc. Wondering if this is the norm
Yeah, you're missing quite a bit.
The amount of time that it takes to either (a) recruit laterals and negotiate comp from a different shop or (b) bringing in extra heads from B4 FDD (or some other quasi-similar industry) and getting them trained as fully functioning analysts or associates is a fucking longer time than you're imagining.
By the time that the above has happened, the market has cooled down, bonus pool is getting thin, so now you're going to have to slash headcount because The Powers That Be got a little too hire-happy during a short-lived M&A boom.
Think about it from a grouphead's perspective - which is the lesser of two evils?
Overworking your current staff
or
going out and hiring new staff (that struck out during FT recruiting most likely) and quickly letting them go if the market comes to a dead-halt (see: Q2 2020)?
Do u think there will be a wave of layoffs soon?
Industry-wide? Hasn't that only happened one time in the last two decades?
You're asking a super loaded question man. Refine and revert, please and thanks.
With the amount of churn + minimum skillset in IB ramping up hiring is pretty difficult.
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