In investment banking—particularly in M&A—there’s no room for error. Deals hinge on trust, judgment, and precision. A single weak link in the team doesn’t just impact internal performance—it can derail whole deals, strain client relationships, and undermine a firm’s hard-earned reputation. Yet in the urgency to fill a  role, especially in high-pressure deal environments, red flags are often overlooked.

So what’s really at risk when the wrong person joins a product or industry group?

1. The Financial Cost of Missed Deals

A poor hire doesn’t just mean paying out a salary and starting over. In M&A, it could mean missing live opportunities—deals that stall, fall through, or are poorly executed. One misjudged valuation, a missed red flag in diligence, or a lack of gravitas in the boardroom can cost millions. For firms working with private equity clients or time-sensitive mandates, a six-month delay in execution can directly erode the value creation plan.

2. Team Disruption and Lost Confidence

M&A teams thrive on cohesion, high performance, and trust under pressure. When a senior hire lacks the right leadership style or technical depth, the ripple effects are immediate: morale drops, junior team members disengage, and high performers begin to question leadership. In a business where late nights and high stakes are the norm, cultural and operational friction can become toxic fast.

3. Reputational Risk in a Credibility-Driven Business

Banking is a reputation business. Clients expect sharp advice, flawless execution, and trust their advisers to get the deal done. A bad hire—particularly in a client-facing or leadership role—can raise questions not just about individual performance, but about the firm’s overall judgment and standards. In regulated or high-profile sectors, one error can compromise longstanding relationships or future mandates.

4. The Cost of Cultural Misalignment

M&A isn’t just technical—it’s intensely collaborative. You need professionals who can operate in ambiguity, guide clients with confidence, and rally internal teams in crunch time. A candidate might look strong on paper but lack the emotional intelligence or decision-making agility needed for live deals. When there’s a mismatch in pace, pressure tolerance, or values, performance suffers—regardless of credentials.

Mitigating the Risk: A Smarter Approach to Hiring

1. Define Success, Not Just the Role
What does success actually look like in this seat? Is this person expected to originate? Execute flawlessly? Mentor juniors? Align internally on outcomes first—otherwise, you risk hiring a great banker into the wrong job. Scorecards are a great way to make sure everyone is on the same page from day one.

2. Prioritise Impact Over Experience
Don’t stop at the CV. Ask: What was their role in winning that deal? How did they navigate a failed transaction? How did they influence decision-making under pressure? Top talent speaks in outcomes, not activities.

3. Assess for Fit Under Pressure
Cultural fit in M&A is about resilience, collaboration, and judgment under fire. Use structured interviews, deal simulations, and scenario-based questions to uncover how candidates operate in real-world conditions.

4. Choose a Search Partner Who Gets It
The right executive search partner doesn’t just send resumes. They write the assessment matrix with you, pressure-test your brief, and bring insight into the market and what high performance really looks like - i.e. who the best available. That expertise can be the difference between a good hire—and a costly mistake.

In M&A, the margin for error is razor-thin. A single bad hire can stall momentum, erode team trust, and cost millions in lost deal value. But with a rigorous, strategic approach to hiring, firms can avoid expensive missteps—and build teams that deliver lasting value where it counts most: in the deal room.

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Get in touch with us at info@croftandco.com to discuss your hiring needs and find out more about our market-leading search product.

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