The Cost of Delayed Hiring in M&A: Lost Deals, Lost Clients, Lost Momentum
Hiring in M&A is always challenging, but in 2025–2026 the stakes are higher than ever. While global deal value rebounded to approximately $3.0 trillion in 2025 (up 31% year-on-year), deal volumes remained flat, reflecting a more selective and competitive market.
At the same time, the market is increasingly concentrated around larger, more complex transactions—megadeals (>$5bn) rose 76% in 2025, even as overall activity stayed constrained.
This dynamic means more of our clients require higher quality bankers with large-cap deal experience, or at least a long list of closed transactions on their CV. Firms that delay critical hires are now paying a price far greater than recruitment fees. The cost of hesitation shows up in lost pitches and then deals, weakened client relationships, and stalled momentum at exactly the moments that matter most.
1. Lost Deals
M&A opportunities are moving quickly again but with fewer, higher-value transactions, execution risk is higher and teams must be fully resourced. We've seen teams look to pull Director-level banking talent back to the deal coalface as their execution skills are often more complete. Clients tend to appreciate this.
In the UK, deal volumes fell 19% in H1 2025, even as average deal size increased to £169 million, highlighting a shift toward more complex, strategic transactions.
Globally, this trend is even more pronounced. Early 2026 data shows deal value rising sharply (+26%) despite declining volumes, driven by large, competitive transactions.
Under-resourced teams simply cannot compete in this environment. Firms are increasingly forced to:
- Decline mandates they cannot staff
- Miss competitive bid situations
- Lose access to high-value transactions
In a market defined by fewer but larger deals, missing even one transaction can have a disproportionate impact on revenue and market position.
2. Lost Clients
Clients today expect both speed and depth and the bar has risen alongside deal complexity.
With transactions becoming more strategic and resource-intensive, clients are gravitating toward advisors who can demonstrate:
- Sector expertise
- Generally larger teams
- Consistent responsiveness
When hiring is delayed, existing teams are stretched too thin. The result is slower turnaround, reduced senior attention, and ultimately a decline in service quality. In a competitive market, this spells trouble.
This matters more than ever. In a market where capital is concentrated in fewer, high-value deals, clients are less willing to tolerate execution risk. Competitors with stronger bench strength step in quickly and once relationships shift, they are difficult to recover.
3. Lost Momentum
The internal cost of delayed hiring is often underestimated but in today’s market, it can compound quickly.
Despite the uneven deal volumes, many firms are preparing for continued recovery. Boutique investment banks, for example, have been increasing hiring and compensation alongside rising M&A revenues to stay competitive.
Firms that fail to keep pace face:
- Increased burnout across lean teams, particularly after junior departures as PE recruiting hots back up
- Declining morale and productivity
- Higher attrition among top performers
What begins as a short-term hiring delay can quickly become a structural issue. As deal flow returns—often unpredictably—firms without sufficient capacity struggle to respond, falling further behind competitors who invested earlier.
4. Why Acting Fast In Important
The current M&A market (Q1 2025) is best described as “top-heavy” and talent-sensitive: fewer deals, but significantly larger and more complex ones.
At the same time:
- Deal value increased 36% year-on-year in 2025, driven by large transactions
- Financial services M&A deal values rose ~15% despite flat volumes
- Firms are actively hiring to position for recovery and secure competitive advantage
Top candidates are acutely aware of this dynamic and for the first time in a while, we're seeing them move purely for better pay. The best talent is typically off the market within weeks, not months.
Firms that act decisively:
- Secure high-impact hires ahead of competitors
- Maintain deal execution capacity
- Protect client relationships and pipeline continuity
Those that hesitate often face a worse outcome: paying more later, hiring reactively, or missing the window entirely.
Conclusion
The cost of delayed hiring in M&A can be measured in lost revenue, missed mandates, and weakened client relationships.
In a market defined by larger deals, tighter competition, and uneven recovery, talent is not just a resource but rather a strategic advantage.
Firms that move with urgency and clarity protect more than just their pipeline. They safeguard the momentum, reputation, and execution capability that underpin long-term growth.
Sources
- PwC – Global M&A Industry Trends 2026 Outlook
https://www.pwc.com/deals/trends - PwC – UK M&A Activity H1 2025
https://www.pwc.co.uk/press-room/press-releases/research-commentary/2024/uk-m-a-activity-contracts-in-h1-2025--but-strategic-investment-d.html - BCG – M&A Outlook 2026
https://www.bcg.com/publications/2026/m-and-a-outlook-expectations-are-high-again - PwC – Financial Services M&A Trends 2025
https://www.pwc.com/gx/en/services/deals/trends/financial-services.html - Reuters – Global M&A surpasses $1.2 trillion in Q1 2026
https://www.reuters.com/business/finance/global-first-quarter-ma-exceeds-12-trillion-led-by-ai-2026-04-01/ - Financial News London – M&A hiring and market activity insights (2025–2026)
https://www.fnlondon.com/articles/cavendish-looks-to-hire-good-people-as-tough-market-frees-up-talent-c61a4bee - Financial News London – Boutique banks hiring amid M&A rebound
https://www.fnlondon.com/articles/boom-time-for-boutique-banks-m-a-bounce-fuels-pay-hikes-and-hiring-74fb0457
