M&A Associate Lateral Market: How Competitive Is It?

Dear Christopher V.,

Step 1: Assess Current Market Conditions

The M&A associate lateral market is experiencing a tale of two cities right now. Traditional M&A work has seen some softening compared to the 2021-2022 peak, but specific sectors and practice areas are absolutely on fire. AI/tech transactions practice groups are expanding at nearly every major firm, and privacy and data security laterals often command premiums over standard compensation.

If you're coming from in-house experience, firms particularly value candidates who understand both sides of the transaction table. Your boutique investment banking background gives you deal flow exposure that many pure firm associates lack.

Step 2: Identify Your Target Markets

Geography matters enormously in the current environment. While New York remains the epicenter, several markets are showing exceptional lateral demand:

• Seattle/Pacific Northwest: Amazon, Microsoft, and Meta drive massive corporate practices, with firms like Perkins Coie and Wilson Sonsini actively recruiting
• California: Bay Area tech transactions remain robust despite broader market challenges, with Fenwick & West and Cooley dominating tech-adjacent work
• Charlotte: One of the fastest-growing legal markets, with lateral demand outpacing supply as firms like K&L Gates and Moore & Van Allen recruit from NYC, DC, and Atlanta

Consider using the bar reciprocity checker if you're exploring new jurisdictions, as some moves might require additional bar admissions.

Step 3: Position Your Experience Strategically

Your in-house perspective is actually a significant advantage. Firms are increasingly seeking associates who understand client-side pressures and can speak the language of business teams. Focus on:

• Deal complexity and transaction value
• Cross-border or regulatory components
• Industry-specific expertise (fintech, healthcare, energy)
• Any emerging areas like AI governance or ESG transactions

Fourth-year associates may be well-positioned—experienced enough to handle sophisticated work but not so senior that compensation becomes prohibitive for many firms.

Step 4: Understand Compensation Dynamics

The Cravath scale calculator can help you benchmark expected firm compensation, but remember that M&A groups often offer additional bonuses tied to deal completions. Some firms may pay above-scale for laterals with strong transactional experience, particularly in hot practice areas.

If you're considering markets outside New York, factor in cost of living adjustments. For example, Charlotte associate salaries are generally lower than NYC levels, though cost of living is also significantly lower.

Step 5: Time Your Move Strategically

Market timing is crucial for M&A laterals. The current environment shows some interesting patterns:

• Many Am Law 100 firms have reported continued revenue growth, suggesting continued lateral hiring
• Bankruptcy and restructuring practices are seeing increased activity, creating adjacent opportunities
• ESG, white collar defense, and healthcare regulatory practices remain consistently hot

Consider making your move sooner rather than later. While deal volume has normalized from pandemic peaks, many firms continue to build out emerging practice areas where your corporate background could be valuable.

Step 6: Prepare for the Process

The interview process for M&A laterals typically focuses heavily on deal experience and technical competency. Be prepared to discuss specific transactions in detail, including your role, challenges faced, and outcomes achieved.

Firms will also assess your business development potential. Your in-house experience provides natural networking opportunities and industry connections that pure firm associates often lack—this is a significant selling point.

Bottom Line Strategy

The M&A lateral market is competitive but far from impossible, especially for candidates with your background. Focus on markets and practice areas showing growth, leverage your in-house perspective as a differentiator, and move quickly while demand remains strong. Consider expanding your search beyond pure M&A to include corporate groups handling emerging areas like AI transactions or ESG compliance—these adjacencies could provide the perfect entry point back into firm life.