Some small, quality boutiques have developed great reputations and strong deal flows largely because of their partners (think DBO Partners, M. Klein & Company). They win deals because of their partners' relationships and their commitment to working directly with the clients. But, what happens to these partner-led boutiques when the partners step aside? Are they able to maintain clients and deal flow?
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It depends on the firm. The two you mentioned will probably be fine. In the case of DBO, they've added new partners in recent years. They also seem to have a few senior bankers who have been with the firm from the beginning, so they could eventually promote them too. Likewise, M. Klein has been increasing their headcount over the past few years, and they can position themselves for long-term success.
On the flip side, there are founder led or partner led shops that are in less ideal positions. I assume most boutiques are this way and will phase out once the partners leave. Keep in mind, the two you mentioned are some of the better shops. I wouldn't say they're representative of most boutiques.
I agree with the above sentiment. Most boutiques are “partner-led,” but most boutiques are not like DBO or M. Klein. While the two you mentioned happen to be in a good position for the long run, most boutiques will struggle once their core leadership departs.
Only if they fail to fill the leadership.
That's the point, the pipeline is non-existent for most of these firms because of low headcount ...
Oh yeah, depending on how core the partner is to the business, the business might go down like crazy. Usually the founding partners don't leave without a successor as in they don't leave unexpectedly.
E.g. If the partner of a major financial services firm who started the company were to leave, then there would be big shake up at the mgmt level. However, MDs are expected to perform by bringing in deals so I think they would be fine after a couple months. They might even hire additional MDs with new partner relationships to offset this founding partner's departure.
So you work at FTP man?
Where are you getting this from? Either way, for everyone's safety, I am going to not engage.
Here we go again, the FTP troll. Why are you injecting them into every damn thread? The amount of inside info you know about them also definitely makes me believe you work there / worked there. Dont give me the "some on the inside told me" BS cuz i dont buy it.
Seriously?! What have I ever said that makes you think I even work there? Could say a bunch of info I've heard from friends about JPM and you'd be convinced I work there of all places.
I'm giving an example bc this firm is a partner-led boutique. I'm not "injecting them in every thread" (your words not mine)
Dont agree with what the poster did in calling people out on an anonymous forum, but Richard.3, you are literally damaging the reputation of FT Partners with your troll posts and attempting to inject them into every thread. It doesnt matter if you work there or not, you are an immature little prick. Good luck passing the airplane test if you are actually a college kid and I feel sorry for everyone at your bank to have to deal with you if you are actually an analyst
The ones you mentioned are definitely not typical. Like any lmm company, it depends on their succession plan. Some guys are fine with running their own small shop then retiring and dissolving things. Others care more about "legacy" etc...
As others have said, DBO Partners and M. Klein will be around, but they're in a different class than your average boutique. Most boutiques are regional or "no name", and they will lose traction/business as the partners walk away.
They grow or they die. That's really all there is to it.
If you think about it, McKinsey used to be a "partner-led boutique". So did JP Morgan.
Shhhh don't let the Partners hear you saying that. Its ONE FIRM no matter how big it gets!
The answer is it depends on what the founder did to build or not build the practice into a business. If you have one MD who is responsible for all revenue generation and they get hit by a bus the firm goes under, quickly. However most of these bankers understand the joke and are looking to build enterprise value. That means bringing in other MDs and building out systems and processes. If you transition from only a name partner to a group of revenue generators and have built out MO/BO functions if the name partner is hit by a bus there is a much better chance the company survives.
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