Advice Needed: Reneging 2 Months Before PE Start
Current 2nd year analyst. Landed an offer about a year ago at a mid-sized PE firm in a sector I currently cover, but in a city where I don’t have many ties. At the time, I accepted because it felt like an appropriate (but not exciting) next step relative to where I was in my career.
Fast forward to now: I’ve continued recruiting selectively and just received an offer from a much larger, more established firm in my current city, also in a sector I already spend a lot of time on. On paper, it feels like the clearly better opportunity. The challenge is I’m supposed to relocate and start at the first firm in July.
Both processes involved different headhunters. My question is: how should I handle informing the original firm that I’ll be reneging while minimizing the risk of jeopardizing the new offer / fucking myself too badly?
Not an ideal position to be in, but I think the second opportunity is the right long-term move for my career.
Reneging on an offer, especially so close to the start date, is a delicate situation, but it can be managed professionally. Based on the most helpful WSO content, here’s how you should approach it:
1. Be Direct and Professional
2. Avoid Over-Explaining
3. Prepare for Potential Pushback
4. Minimize Risk with the New Offer
5. Handle Headhunters Carefully
6. Accept the Consequences
7. Keep Perspective
By following these steps, you can minimize the fallout and move forward with the opportunity that’s best for your career.
Sources: 7 Tips on Reneging, Please help! Renegging on an offer and boss threatening to cancel me, 7 Tips on Reneging, I need your advice
Bump
Here are my thoughts.
This is business. You made a deal. Your word is your bond. You now want to switch things up and change the deal. You’re in the lower position.
That said, we are all adults. Things change. You’re young. You had your reasons.
If possible to get back in touch with your original deal partner and explain your situation and reasoning; hopefully you could come to a win-win with them. They relied on you and whatever to stand by your agreement and didn’t pursue other people. This isn’t a big M&A deal with a breakup fee but maybe you’ll have to help them find a replacement or something. Idk.
hopefully you could contact the previous firm and come to better terms with them that’s a win win. Who knows maybe they’ll offer you something better that’ll make you more exited to move.
In short, try to not burn a bridge. Try to leave or continue the agreement on good terms.
I hope this helps
this is all nice and employer friendly... but you have to look our for your own career first. If this new place is a material step up, take the new offer and move on. Firms won't think twice before firing you and chances are they don't have much backing to scerw you over.... just odn't do this twice/soon again it's a bad look
Business is business. But they will probably shit talk you a bit.
Not sure about your specific situation, but generally, they’d fire you without a second thought if it was worthwhile for them. Why would you have loyalty to people who don’t have loyalty to you?
Tell them you’re reneging asap and do NOT tell them with what firm. They’ll be pissed and probably yell at you (happened to me in ib recruiting) but there’s noting they can do. Important context would if your new firm does business in the same sector that you’re reneging on.
Just do it. The more time I spend in this industry, the less I think of most senior PE partners. These are not good human beings. Do what's best for you. If you are young and the firms are in different market segments, you will be fine long term.
Once you are in the seat, you are utterly powerless. Use your leverage while you still have it.
Just reneg. Fuck them. You won't care about their grievances 6 months from now.
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