To get into M&A you must have an academically solid foundation. This is the reason that many of the most sought-after M&A jobs require an MBA. It’s also beneficial to be connected with alumni, professors and others who can help gain access to top firms and networks are essential to getting these positions.
When hired, M&A analysts are charged with constructing financial models that analyze the value of two companies together after acquisition. This requires a thorough analysis of synergies costs of capital, proforma impact to EdgeCo and IRR. It’s a demanding role, and top companies must find people who can thrive within the company culture. To do this they seek applicants who have strong communication skills and the ability to work as a team player.
Coordination and teamwork are vital to a successful M&A. If the acquiring and target companies are both remote, the process becomes more difficult to manage. However, with a digital workplace that supports collaboration, teams are able to keep track of coordination and communication throughout the process.
One of the most challenging aspects of M&A is ensuring that a fit with culture is achieved. Many leaders believe that culture fit will come naturally after the deal is completed, but this can be a dangerous assumption. The attempted merger between AOL Time Warner failed due to cultural incompatibilities. AOL’s corporate culture of stoicism did not match with Time Warner’s cocky aggressive approach.
To avoid this type of disconnect, leaders must make sure that employees are aware of what’s happening. This can be done by providing a reliable stream of information that keeps employees informed, halts rumors and reassures staff about their future at the new firm.