List of Top 4 Mergers and Acquisitions Career
Career List in Merger & Acquisitions: Below mentioned are some of the Merger & Acquisition roles that a person can reach in his carrier.
Overview of Merger & Acquisitions
Merger & Acquisition refers to the consolidation of two companies into one company either by merging the company’s assets and liabilities or by acquiring the entire equity capital. It is a strategic move by the top management in order to consolidate the revenues and assets of two companies into one in order to increase the strength and balance sheet.
- A mergerMergerA merger is a voluntary fusion of two existing entities equal in size, operations, and customers deciding to amalgamate to form a new entity, expand its reach into new territories, lower operational costs, increase revenues, and earn greater control over market share. gives each party an equal shareholding right in the combined entity for executing the transaction. Below mentioned are some of the types of M&A in the industry.
- Horizontal Merger: A horizontal merger refers to the merger of two companies in the same business.
- Vertical Merger: Vertical MergerVertical MergerA vertical Merger is the combination of 2 or more business units operating at different production stages of the same supply chain for a common product or service. It often occurs between the product manufacturer & its raw material supplier. refers to buying the main supplier of the business. e.g., a steel trader buys the manufacturer of steel.
- Conglomerate Merger: ConglomerateConglomerateA conglomerate is a company or corporation made up of different businesses that operate in various industries or sectors, often unrelated. It holds a stake in multiple smaller companies that choose to manage their business separately to avoid the risk of being in a single market, thus, taking advantage of diversification. Merger refers to the merger of two companies having different business lines altogether.
- Statutory Merger: Statutory MergerStatutory MergerA statutory merger occurs where two merged companies need to follow statutory laws and compliance. Therefore, one company from the two merged companies keeps the same legal identity even after the merger, and the other company loses its identity. refers to holding the target for a very long time to create synergies.
- The merger of Equals: It refers to the merger of two companies having a similar size in terms of balance sheets and revenues.
- M&A deals are financed either by cash, debit, or equity route.
- Every large organization has an M&A department in its company focusing on merger and acquisition opportunities in the market.
- M&A professionals also work in sell-side investment banks who advise companies on the M&A strategies and the complete process to execute the transaction.
Since it requires extensive expertise in the field, the company hires M&A experts who have hands-on experience working on complex financial models and structuresFinancial Models And StructuresFinancial modeling refers to the use of excel-based models to reflect a company's projected financial performance. Such models represent the financial situation by taking into account risks and future assumptions, which are critical for making significant decisions in the future, such as raising capital or valuing a business, and interpreting their impact.. Hence M&A profile is one of the most crucial roles in any investment bank or a large corporate house since it helps in building synergies.
Career #1 – Merger & Acquisition Analyst
Who is a Merger and Acquisition Analyst?
Mergers and Acquisition analyst does the ground level work in the deal process. They mostly work on the due diligence and market and peer group research of the companies. An analyst is expected to work long hours on the assignment and present a report on the findings.
|Merger & Acquisitions Analyst – Job Description|
|Responsibilities||Responsible for completing the entire due diligence in them & a process by conducting client meetings and sharing of information.|
|Designation||M & A Analyst|
|Actual Role||No data has been shared by the Bureau of Labor Statistics in the US.|
|Top Companies||All large corporates & bulge bracket investment banks.|
|Salary||The median annual salary for an M & A analyst will be between $80,000 to $1,00,000.|
|Demand & Supply||Highly demanded profile since it requires extensive modeling skills along with experience working on large databases & knowledge about multiple sectors and companies that are active in the Merger & Acquisitions Space.|
FA/CPA / MBA/ Valuation Expert from Tier -1 Universities with at least 5-10 Yrs of Exp.
CPA/ MBA / CFP/ CFA
Chance to work on the M & A deal in the due diligence process which can be a booster to the candidate’s career in the future.
|Negatives||Extensive working on presentations and databases.|
#2 – Merger & Acquisitions Associate
Who is a Merger and Acquisition Associate?
Merger and Acquisition Associate oversees the work of the junior analyst and guides him in the entire due diligence process with various things like ppt, excels, etc. He reports to the VP with regard s to the day-to-day operations and the status of the deal.
|Merger & Acquisitions Associate – Job Description|
|Responsibilities||Responsible for mentoring the analyst and make them work in complex financial structures to enhance their research & analytical skills.|
|Designation||M & A Associate|
|Actual Role||Support the vice president in the M & A Deal with the right kind of information researched from the market.|
|Job Statistics||No data has been shared on the Bureau of Labour statistics of the US.|
|Top Companies||JP Morgan, E&Y, KPMG, Deloitte, PWC, Rainmaker Group are some of the top M & A firms in the world.|
|Salary||The median annual salary for an M & A associate can be anywhere between $2,00,000 to $3,50,000 since it is a professional role.|
|Demand & Supply||Very high demand for the role since it requires extensive experience in the sector along with exposure to multiple M & A deals.|
CFA/CPA / MBA from Tier -1 Universities with at least 7-10 Yrs of Exp.
A team leader’s role in managing a team of analysts and assigning them tasks on a regular basis.
|Negatives||Long working hours researching the market can be a tiring job.|
Career #3 – Vice President
Who is a Vice President?
Vice President leads them & a department and is responsible for carrying out the merger in the best possible manner. He reports directly to the partner / CEO of the firm/company about the performance of the team members and the status of the deal on a periodic basis.
|Vice President – Job Description|
|Responsibilities||Responsible for arranging client meetings and letting them know the synergies of the merger or acquisition.|
|Designation||Debt syndication manager.|
|Actual Role||To build a detailed cash flow plan for the company over the tenure of the debt raised so as to ensure sufficient funds are always available with the company to satisfy the debt obligations.|
|Job Statistics||The bureau of labor statistics of us does not display data on this role.|
|Top Companies||JP Morgan, E &Y, KPMG, Deloitte, PWC, Rainmaker group are some of the top M & A firms in the world.|
|Salary||The median annual salary for a general manager can be anywhere between $ 3,00,000 – $5,00,000.|
|Demand & Supply||Highly demanded to profile them & a role is a very niche role in the industry and requires a very high experience person to drive the deal forward.|
|Education Requirement||CFA/CPA/MBA/valuation expert with 20+ yrs of exp in the valuation field.|
|Positives||Leads the department and allocates work to the team members.|
|Negatives||Risky profile to work because, in the case of financial issues, he is the one who will be asked to leave the company because of the higher compensation.|
Career #4 – Partner
Who is a Partner?
Partner is in charge of the M&A vertical in an accounting firm. He is in charge of the full department and ensures that the firm keeps on getting new deals from the market through his network.
|Partner – Job Description|
|Responsibilities||Responsible for generating M & A deals from the market through relationships and networking skills.|
|Actual Role||Business development for the firm as all the team members depend upon the partner.|
|Job Statistics||No data has been displayed by the bureau of labor statistics.|
|Top Companies||Deloitte, KPMG, PWC, E&Y, GT are the top 5 big CA firms in the world.|
|Salary||The median annual salary for the same can be anywhere between $ 5,00,000 to $10,00,000|
|Demand & Supply||It is a specialized role and requires a high level of experience and skills to achieve it.|
|Education Requirement||CFA/CPA / MBA from tier -1 universities with at least 15-20 yrs of exp.|
|Positives||A chance to take part in the profits of the company.|
|Negatives||High responsibility since all the team members depend upon the network and the ability of the partner to bring business for the firm.|
Mergers and Acquisitions is one of the topmost favored careers in any company/investment bank. M&A models are one of the most complex financial models built in the industry since it analyses two companies at a time and tries to build synergies among the two. This is a very scary profile for the professionals in the industry to display their Analytical & Technical skills and enhance their career opportunities in the future.
Further, this is a great opportunity for any candidate to work since it is the topmost demanded and most favored jobs in the market amongst the finance professionals. To make a Career in Merger & Acquisition, one has to work in a Boutique Investment Bank at his early stages to learn & get a chance to work on the full deal cycle.
This has been a guide to Merger & Acquisitions Careers. Here we provide the list of top 4 careers in Mergers and Acquisitions, which include M&A Analyst, M&A Associate, Vice President, and Partner. To learn more about Finance Carers, you may look at these finance articles below –