Case Study: Strengthening M&A Leadership During Market Volatility

Brief

In early 2025, against a backdrop of volatile equity markets and uneven deal activity, a leading European bank faced a familiar M&A dilemma. While large-cap transactions had slowed, mid-market mandates were becoming more complex, with longer timelines, heavier diligence, and more cautious boards on the buy side.

At the same time, the bank’s M&A team was under strain. A senior Managing Director had recently departed for a competitor, taking with them several long-standing client relationships. Two Directors were stepping up to fill the gap, but both were already running live processes alongside junior teams stretched thin by repeated stop-start transactions.

Leadership debated pausing senior hiring until deal volumes stabilised. On paper, this reduced cost risk. In reality, it left the bank exposed: pitches were being led by less experienced bankers, client feedback hinted at concerns around continuity, and internal morale was beginning to dip as teams absorbed extra workload with no clear end in sight.

The bank needed to strengthen its senior M&A bench without making a hire that only made sense in a booming market.

Approach

Croft & Co worked closely with the Head of Investment Banking and the support team to assess the market and pipeline potential candidates. Rather than prioritising headline deal volume, we focused on identifying senior M&A bankers who had proven effective in slower, more uncertain cycles.

We targeted individuals with experience running complex sell-side and carve-out processes during downturns, bankers who could demonstrate how they had kept transactions moving despite valuation gaps, financing constraints, or hesitant boards. One example came from a candidate who had successfully closed a cross-border industrial sale after two failed auction rounds, by restructuring the process into a bilateral negotiation and keeping management teams engaged over an extended timeline.

Another shortlisted individual had built a reputation for maintaining client trust when deals were delayed or pulled. During a previous market slowdown, they had retained key mandates by helping CEOs prepare for transactions that would only launch 12–18 months later, positioning the bank as a long-term adviser rather than a transactional counterparty.

Beyond technical M&A expertise, Croft & Co stress-tested leadership and judgement. Candidates were assessed on how they would:

• Lead pitches when valuation expectations were misaligned
• Keep junior teams motivated during long, uncertain processes
• Decide when to advise clients not to transact

Cultural fit was critical. The bank wanted senior hires who could reinforce credibility with clients while acting as mentors internally, stabilising teams during a demanding period.

Results

The bank made two senior M&A hires within the year, appointing experienced Managing Directors with complementary sector coverage. Within months, both were actively contributing to live mandates, including a mid-market sell-side process that had previously stalled due to financing uncertainty.

Client feedback was immediate and positive. CEOs and private equity sponsors cited the depth of experience and calm decision-making of the new hires as reasons for re-engaging the bank on complex assignments. Internally, Directors reported clearer leadership and more realistic deal planning, reducing burnout and improving execution quality.

By choosing to hire during volatility rather than waiting for a full market recovery, the bank avoided losing further ground to competitors who were also targeting proven M&A talent. When deal activity began to pick up, the team was already in place — positioned not only to execute transactions, but to advise clients with credibility earned during the most uncertain phase of the cycle.

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