How deal flow affects executive hiring and leadership

Deal flow has been slow this year: high interest rates, buyer-seller price expectations and more regulatory scrutiny have created a chilly environment for transactions. There are signs the deal market could thaw in the next 12 months, however, which has implications for talent decisions.

For PE firms and VC funds, there are two factors to consider when evaluating current and potential C-suite leaders in this environment.

  1. On the talent demand side, the increase in alternative exits (JVs, divestitures and other deal structures) means business leaders must be prepared to manage challenges around integration and absorbing new assets. Likewise, a lack of cheap capital makes profit growth even more important. Do you have the right leaders to handle these challenges?
  2. On the supply side, candidate sentiment is beginning to feel a lot like it did at the beginning of the pandemic. Top talent is looking for new challenges, but concern about stability and a relative lack of opportunity is slowing executive movement. This could lead to a “pop the cork” moment of higher unwanted attrition in 2024 similar to what we saw in late 2020-2022.

If you want to have a conversation about your challenges or learn how we can help through executive search and coaching services, please contact one of our partners.

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