AU
More mergers doesn't mean more M&A jobs
17 June 2008
Searching for your M&A dream job on the back of the Aussie mergers boom? You could be in for a long wait.
Bucking an international slump, US$59.6bn of M&A deals targeting Australian companies were announced for the first five months of 2008 – up 38% on the same period last year, according to Thomson Reuters.
But this hasn’t created a jobs bonanza for M&A bankers. The employment market is flatter than 2007 as headcount reductions at global i-banks make them less willing to expand their local M&A teams, says Tony Garrett, a partner at Deloitte Corporate Finance. “Market turbulence is also causing unrest and conservatism among employers, whether local or international.”
The opportunistic and sector-driven nature of the recent mergers surge is stopping it filtering down to the jobs market. Garrett tells us: “M&A deal flow is hard to predict and a volatile market can create and then eliminate opportunities quickly. Sectors such as resources and financial services are clearly in favour due to their own market forces, hence the emergence of some mega deals such as Westpac-St George.”
Oliver Darkes, principal consultant at Carmichael Fisher, agrees that hiring is generally stagnant but adds that growth sectors also include healthcare, real estate and utilities.
For your best chance of ensnaring an M&A position, try Deutsche Bank, Goldman Sachs or Macquarie, especially if you’re a resources or infrastructure expert with four to eight years' experience, says one recruiter who asked not to be named. Boutique advisory firms, such as Grant Samuel, might also be worth a shot if you’ve been chopped from JPMorgan. And Garrett reckons some M&A bankers are moving back to the big four accountancy firms to work in advisory roles.
Michael Notley, a senior consultant at SMF Recruitment, says banks will still talk to director-level Australian nationals who have recently returned home from overseas. “But last year these guys would have been snapped up in a bidding war. That reflects how the market has changed in M&A.”
