Networking is Key to Getting Into M&A

The process of getting into M&A requires a strong academic background, which is the reason the most coveted M&A jobs typically require an MBA. It is also beneficial to network with former students, professors, and others who can help open doors to top companies. Networking is vital to securing these positions.

Once hired, M&A analysts are charged to develop financial models that evaluate the value of two companies combined post-acquisition. This requires careful analysis of synergies and cost of capital and proforma impact to EdgeCo and IRR. It’s a critical role and top firms must identify candidates who will thrive in the company culture. They seek candidates who have strong communication skills as well as the ability to work in a group.

Effective M&As require a considerable amount of coordination and collaboration. These processes are more challenging to manage when the target and the acquiring companies are separated. With digital workspaces that encourage collaboration, teams are able to stay on track in terms of integration planning and communication.

The ability to achieve a good cultural fit is among the most difficult aspects of M&A. Most leaders assume that a culture fit will occur naturally once the deal is completed however this is a shaky assumption. The attempt to merge AOL Time Warner failed due to cultural incompatibilities. AOL’s traditional corporate cultures did not match with Time Warner’s cocky aggressive approach.

To prevent this kind of disconnect, managers need to ensure that all employees are aware of what is taking place. This can be accomplished by providing a consistent stream of information to keep employees informed, deter rumors and reassure employees about their prospects at the new firm.

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