Essentially, mergers and acquisitions (M&A) jobs entail advising businesses on how to buy or take over other businesses. Professionals in these fields must be well-versed in a variety of funding methods, including debt and equity, in order to finance M&A transactions. M&A activities are frequently delegated to a department of a well-established investment banking firm. A person with a Master of Business Administration (MBA) degree, a lawyer who specializes in the legal aspects of M&A deals, or an accountant who primarily deals with tax issues but can also assist in business valuation could all be M&A professionals employed by such an entity. All three of these positions, as well as others in some cases, may require candidates to collaborate in order to best structure a deal and advise companies seeking to merge with or acquire other businesses.
Jobs in mergers and acquisitions can include things like leveraged buyouts (LBOs), corporate takeovers, reverse mergers, and more. The majority of these jobs will involve merging or buying companies to form a single entity, but some M&A deals will involve breaking up companies to form separate entities. M&A professionals may also be required to survey all departments in order to evaluate and determine whether specific mergers or acquisitions are good business strategies for their clients. As a result, M&A professionals must have a broad business understanding that allows them to quickly grasp different business models.
In most mergers and acquisitions jobs, the professional will be able to advise either the selling or buying company, and his or her job will be to practically broker the best deal for the client. In a buyout, for example, the finance professional will advise the client on various financing options for the M&A transaction, which are typically debt and equity issuance. He or she will usually propose debt and equity capital proportions and may be in charge of dealing with private equity investors, especially if the deal involves private companies.
An M&A lawyer will typically handle the legal aspects of the transaction, as well as having a good understanding of finance. The tax issues will be handled by the M&A accountant, who can also assist in the valuation of the company being purchased. Furthermore, the lawyer and accountant will collaborate with the finance professional in charge of raising funds for the purchasing firm. All three are in charge of ensuring that the deal makes sense and that the client will profit from it. Large M&A transactions may necessitate the involvement of teams of finance professionals, lawyers, accountants, and possibly other parties.
Many mergers and acquisitions positions will require a bachelor’s degree in a field such as finance, management, accounting, or law. With an undergraduate degree in these fields, one can get an entry-level job, and by putting in the effort and, ideally, continuing education for higher qualifications, one can advance in the company. Strong interpersonal skills, numerical and analytical aptitude, strategy, competent negotiation skills, and the ability to handle complex deals are all highly valued skills. Furthermore, mergers and acquisitions jobs may require long hours, so perseverance is a good quality to have for this type of job.
Typically, one must start as a financial analyst for an investment bank in order to get a shot at many mergers and acquisitions jobs. The analyst can be hired right out of college and work for the company to gain experience. Simultaneously, he or she may pursue further education in order to obtain an MBA or other relevant credentials. He or she can work for the company while also studying, which is ideal for some people because it increases their chances of getting a better and higher position with the company, as well as a higher salary.