Collect financial data on companies involved in mergers and acquisitions.
What does a Mergers and Acquisitions Analyst do?
Let’s start with definitions. An Analyst is someone who evaluates, breaks apart, and makes conclusions about products or ideas. Acquisitions deal with buying things – in this case, an entire business or a portion of it. And mergers are business transactions in which two businesses combine assets.
So, as a Mergers and Acquisitions Analyst, you scrutinize reports and financial records in preparation for such transactions.
After reviewing vast amounts of paperwork, as the Mergers and Acquisitions Analyst you create specialized reports that consolidate and summarize pertinent information. This information is sent to the decision-makers – CEOs, CFOs, COOs, and Managers. Then, you continue to process, change, and create presentations throughout negotiations.
You can work in one of two industries within the M&A field as a Mergers and Acquisitions Analyst. The first, and most common, is the accounting firm, which is hired to handle the analysis of the transaction. The second, frequently hyped by Hollywood, is the somewhat more frenzied investment bank, which handles the widely publicized major corporation mergers or hostile takeovers.
In both industries, you work either for the buying or the selling company. The buying company needs to ensure that the decision is a profitable one. So you analyze customer base, profits, assets, and overhead.
If you work for the selling company, on the other hand, you want to make sure they are receiving a fair price for the value of their assets. Either way, you can expect to work long hours often. But there’s room for advancement – it’s a perfect training ground for the position of Mergers and Acquisitions Associate.