Reneging BB for buy-side - how risky

Reneging on a BB offer for a buy-side role carries significant risks, both immediate and long-term. Here's what you need to consider based on the most helpful WSO content:

1. Odds of Discovery:

   • While you've asked your reference not to disclose that you accepted the BB offer, banks and firms often have informal networks where information can flow. HR departments, especially at large firms, may communicate with each other, and there's always a chance that the buy-side firm could find out through backchannels.
   • Additionally, if the buy-side firm conducts a thorough background check or reaches out to other contacts at the BB, the truth could surface.

2. Do They Care?

   • Buy-side firms are generally more focused on securing top talent and may not care as much about your reneging decision, especially if they see you as a strong candidate. However, this isn't guaranteed. Some firms might view reneging as a red flag, questioning your integrity or commitment.
   • It's worth noting that reneging is a calculated risk. If the buy-side firm values you highly, they might overlook it, but there's no universal rule.

3. Potential Consequences:

   • If the BB finds out about your reneging, they could rescind your offer, leaving you with no fallback if the buy-side opportunity doesn't materialize.
   • Reneging could also damage your reputation in the industry. Finance is a small world, and people have long memories. This could impact future opportunities, especially if individuals involved in this situation cross paths with you later in your career.

4. Advice:

   • Be cautious and strategic. If you decide to proceed with the buy-side opportunity, ensure that you handle the situation professionally and discreetly.
   • Consider the long-term implications of your decision. While the buy-side role might seem more appealing now, think about how this move could affect your reputation and relationships in the industry.

Ultimately, the decision to renege is a personal one, but it should be made with a clear understanding of the risks and potential fallout.

Sources: Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, Reneging a BB offer, Current IBankers: What would you do if a summer candidate reneged another offer to sign with your firm?, Backing out after accepting an offer