M&A hiring: Firms seek versatile corporate development leaders

Hopes are high among dealmakers as we breach the second half of 2024, and corporate development hiring has stayed relatively strong.

However, firms have consistently sought a more versatile profile as they reconcile with conflicting growth strategies among portfolio companies. As some deals get inked and others hit pause, these hires must be able to manage any and all scenarios.

In this article, we look at the current M&A landscape and explore how firms are deploying new corporate development hires.

Hope still high for second half of 2024

Last year, many analysts predicted M&A would make a comeback, or even reach pre-pandemic levels. We haven’t seen that yet in terms of deal flow, but hiring activity is still promising (we’ve completed north of 25 M&A searches in the first half of this year).

In data aggregated by our transaction services newsletter, deal prospects dipped slightly in the second quarter of 2024 but are still up from the back half of 2023.

Many investors are biding their time to see how the economy performs through the year and to prepare for a potential recession that continues to loom. Others are moving deals ahead quickly to boost their portfolios ahead of any potential impacts.

What does this mean for executive hiring?

Contrasting growth strategies among portfolio companies mean firms need dynamic corporate development talent who can manage varying situations.

Read: The ultimate Charles Aris guide to executive recruiting

Instead of hiring specialists, we’re seeing increased interest in “wearers of many hats,” who can step into a corporate development role to generate pipelines for one portfolio while managing an integration for another, as well as even helping on FP&A or other broader operational initiatives.

The way firms identify these individuals is by looking for candidates with a strong strategic lens and dynamic experience. The most compelling profiles will have experienced the full M&A lifecycle and are equally comfortable sitting in the boardroom as they are conducting independent analysis.

Strategic sourcing is a must, because many firms are comfortable spending more time on diligence as they wait for the macro environment to stabilize and become more predictable through the end of the year.

Additionally, firms need corporate development leaders who understand the nuance in portfolio company markets. For example, the AI boom has led IT services companies to be at the forefront of tech, and firms are looking for someone with a long-term vision into whether this could be the case into 2025 and beyond.

Looking ahead:

Right now, firms are focused on securing corporate development leaders who not only possess strategic foresight and versatile skills but also exhibit a deep understanding of evolving market dynamics, such as the AI boom in IT services.

The remainder of 2024 is expected to be pivotal, with companies balancing the need to accelerate some deals and pause others. As such, the demand remains high for executives who can navigate this dynamic and drive growth.

To learn more about the state of M&A hiring, contact Diane Fedor at (336) 217-9198 or diane.fedor@charlesaris.com.