Ravi Madhavan's A&D Blog

Article on M&A internships

By way of the Wall Street Journal Deal Journal, here is an article on M&A internships, from Mergers & Inquisitions, which seems to be an interesting web site to keep on the radar.

Recruiting Merrill's "thundering herd" of brokers

In the wake of Banc of America's acquisition of Merrill Lynch, the latter company's vaunted army of brokers (its "thundering herd") must be wondering about their futures, including whether it makes sense to stay on with the combined entity even if their jobs are secure. In such situations, the best people are often the first to leave, as they will likely have the most options. Needless to say, other companies and headhunters will be circling - here's an example, courtesy of Reuters Deal Zone, of the efforts headhunters make in such situations.

When (not if) your company announces a merger...

The Wall Street Journal has an article on how to navigate your career in the midst of a merger. Mergers are often followed by job cuts:

[S]ome 36,918 employees were laid off as the result of a merger or acquisition in 2007 and an additional 25,101 in the first five months of this year -- 13,841 in May alone, including many of the jobs lost at Bear Stearns after it was purchased by J.P. Morgan Chase...

The article suggests six actions to take if you find yourself in such a situation:

1. Communicate regularly with your boss.

2. Research the new landscape.

3. Assess your options.

4. Be visible and advertise your expertise.

5. Network inside and outside.

6. Be realistic.

State of investment banking job market

This Wall Street Journal Deal Journal entry, commenting on the plight of Bear Stearns investment bankers who might be looking for new jobs, observes:

The trouble is, this might be the worst market to find an investment-banking job since 1990. Layoffs are sweeping the Street, with many more to come, according to bankers.

How acquisitions impact career

Merger announcements are stressful times for individual employees, as they try to figure out whether the deal will impact them personally. This career question response in the Wall Street Journal Career Journal addresses a related question: What if you've just accepted a job offer and then hear that the company has been acquired? In the process, the article suggests some indicators of whether particular jobs may be at risk:

Some acquisitions are made to gain technical expertise or build a new practice area. If you're a revenue generator or have a specialized expertise that the new company wants, it will probably want to keep you, says Denise Messineo, senior vice president of human resources for Dimension Data Americas, a 900-employee unit of a global information-technology consulting firm that has acquired other consulting organizations.

"There is a war for IT consultants right now, and I haven't seen layoffs of IT revenue generators in a long time," she says. "If you are immediately billable, the acquisition probably won't have an impact on you."

Your job may be more at risk if it's a staff or support role; if your practice area doesn't generate sufficient revenue; if the acquiring company has expertise like yours in-house or normally slashes costs after such deals; or if the consulting business slows down generally.

Review past acquisitions the new company has made and find out what typically happens to employees afterward, suggests Gaines Baty, president of R. Gaines Baty Associates Inc., a recruiting firm in Dallas that works with consulting organizations. Determine whether it typically lays off staff, what the culture is like and whether your skills are complementary.