Hiring picks up as tech M&A deals signal rebound

In October, 30% of the private equity acquisitions we saw involved tech, media and telecom (TMT) companies, which we believe signals a potential rebound for TMT transactions as we come out of a two-quarter lull and look ahead to 2025.

Private equity firms are reengaging with these sectors in anticipation of an economic upswing, setting the stage for accelerated deal flow and strategic growth during the year ahead. Much of this activity is likely driven by pent-up demand from earlier in the year, coupled with dry powder that private equity firms have earmarked for the TMT sector but delayed due to economic uncertainties.

With an increasingly positive outlook for the coming year, many TMT companies and private equity sponsors are pushing to initiate transactions before the close of 2024.

This renewed appetite for TMT transactions has also sparked a hiring crunch in corporate development. Depending on the leaders required to drive these deals, companies are launching their talent searches now with the goal of securing top candidates before the end of Q1 2025.

With these factors at play, this article will outline several critical considerations for both hiring managers and candidates contemplating their next moves within the TMT M&A landscape.

Avoid misalignment by locking down your needs at the onset of a search

Clearly defining role requirements at the outset of a search is crucial to prevent misalignment between the new corporate development leader’s responsibilities and the organization’s broader development initiatives.

Related: How to align corporate development hires with operational growth

For hiring managers initiating this search, a targeted and well-defined candidate profile aligned with the company’s specific needs will set the foundation for a more effective recruitment process. Identifying and prioritizing the most essential skills and experiences needed in M&A—from deal sourcing to integration—is essential to ensure that the candidate will seamlessly support the organization’s growth strategy.

Candidates, for their part, should seek roles where their expertise not only meets the company’s immediate requirements but also aligns with future career development goals. It’s important to find opportunities with professional growth opportunities and long-term potential rather than joining solely for transaction experience. Candidates should confirm that they’re stepping into a company with aligned business and career goals.

Versatility continues to be a common hiring theme

An increasing number of firms are looking for corporate development leaders with multifaceted skill sets who can navigate various stages of M&A, including deal sourcing, negotiation, integration and operational support. Leaders who are agile and strategic in their approach are best suited to handling the unpredictable pace of today’s M&A environment, making them valuable hires for firms eager to maximize their TMT investments.

Related: M&A hiring: Firms seek versatile corporate development leaders

Considerations for end-of-year hiring and career transitions

Interviewing during the holiday season presents distinct advantages for both candidates and hiring managers. Candidates gain the benefit of positioning themselves for a fresh start in the new year, while companies secure top talent ahead of the typical January hiring wave, gaining a competitive edge.

The holiday season also allows candidates to leverage benefits such as year-end bonuses or equity vesting, while employers can avoid competing with annual raises by offering compelling career pathways that may require fewer signing bonuses.

Additionally, both candidates and hiring managers benefit from more flexible scheduling during this period, as year-end busyness can make it easier to arrange interviews without causing major disruptions to daily operations. Candidates may even find that executives have more bandwidth for interviews in the quieter days of late December.

The takeaway

As we move toward the end of 2024, we anticipate a continued resurgence of TMT transactions. Companies aiming to secure skilled, adaptable corporate development leaders would do well to start their talent searches now, clearly outline role requirements and take advantage of holiday-season interviewing.

For candidates, this presents an ideal opportunity to align their unique skills with companies’ growth objectives, preparing for impactful roles in 2025.

To learn more, contact Diane Fedor at (336) 217-9198 or diane.fedor@charlesaris.com.