The biggest issue facing financial services M&A isn’t the lack of financing or the pending fiscal cliff. Finding good people to manage businesses is the biggest problem in financial services, according to executives at the Financial Services M&A Symposium
“It’s unbelievable the lack of managerial talent [available] across the financial services industry,” said one private equity executive. “Mediocrity is the norm. It’s a challenge to find great management teams.”
“They make up for it in ego,” another PE exec quipped.
Financial services is bloated with people, the first source said, but it’s still hard to find good staff. A generational talent gap is causing the lack of talented people, the person says. The environment has changed in the last five years in terms of regulations, compensation and technology and people aren’t adapting, the exec said.
Finding staff isn’t hard, the person said. “Finding great management to run companies today is difficult,” the source said.
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