Redundant 'Alex' faces difficult job search

'Alex', a 45-ish corporate financier who is the star of a popular comic strip of the same name, is looking for a job after being made redundant in London by his creator. eFinancialCareers asked some headhunters what his chances of success might be in real life, in the current dismal job market.

With European mergers and acquisitions volumes down by 60% last year from 2000, corporate financiers are feeling the pinch.

Many headhunters believe a new round of job losses is on the way in corporate finance in the next few weeks. Headcount at the investment banking divisions of many large firms in Europe has already dropped by more than half from its peak two years ago, according to a report late last year by the headhunter Armstrong International.

But even in these tough conditions some senior corporate finance staff - whether redundant or just wanting a change - are continuing to find new jobs. Recent moves include the arrival of Charles Packshaw at HSBC as head of UK corporate finance last month, after leaving Lazard. He was joined by Charles Ashton from JP Morgan.

Andrew Lowenthal, head of financial services at Egon Zehnder, said: "Even now, some people are finding new positions at an equivalent level. Often a bank might not have a formal search on, but if a first class person is introduced they will take them."

Bonuses for the very best had not dropped from last year, he said. But overall corporate finance bonuses had fallen 35%-50%, with mediocre staff suffering the most.

Some people were finding jobs within the industries to which they used to give advice, such as joining an acquisitive telecoms company that wanted in-house banking advice.

James Dodson, a consultant at Longbridge, said second tier banks were still hiring high quality senior people from bulge bracket firms. "A client-facing managing director has a reasonable chance," he says. "But A.N. Other Director is less attractive."

Many corporate financiers tried and failed to land a job in private equity, he said. They were seen as too deal-oriented and lacking in strategic skills.

Julie Calvert, of Calvert Percival, said a popular route for redundant corporate financiers was to set up a boutique, or use their relationships with corporates to advise them on an informal basis.

"This is an obvious way forward as the traditional job market is impossible for many of them."

At Sheffield Haworth, Neil McKay said many people now setting up boutiques might find they could sell them for a fortune in a few years. "Things are grim now but corporate finance is cyclical just like other industries," he said.

Meanwhile utilities and financial institutions were among the sectors least affected by the job drought, he said. There was also much more work around for anyone willing to handle small and medium-sized deals instead of large ones.

McKay added that if setting up a boutique did not appeal, someone like 'Alex' could do worse than go round the world for a year.

('Alex' appears in The Daily Telegraph in the UK and is widely syndicated.)