A:

The life of a financial professional involved in the field of mergers and acquisitions can, like any line of work, vary considerably from person to person and from company to company. However, there are some common experiences that most M&A professionals share.

Most M&A activity is carried out by investment bankers who specialize in this area of the financial markets. Usually, when a corporation wants to engage in a merger or acquisition with another company, or is contemplating a sale of the business to prospective buyers, it will hire an investment banking firm to assist with that process.

The hours for the investment bankers involved in an M&A deal are typically very long and involve tight deadlines. Businesses don't stop their operations just because they are pursuing an M&A deal, and the conditions of the industry and the value of the company involved continues to change constantly. As a result, financial professionals involved in M&A activity typically have tight time lines to complete demanding tasks.

As for the length of an M&A project, this can vary considerably depending on the size of the company involved and the nature of the deal. If a large corporation is looking to sell itself to the highest bidder, the process can be long and drawn out, as different suitor companies engage in buyout talks with the company and different proposals are evaluated, modified and negotiated. In contrast, if the deal involves a large corporation buying a much smaller niche company, the process can be much more streamlined, especially if there are no other interested buyers in the picture. In these cases, M&A projects can end up being rather short.

To learn more about M&A activity, check out The Basics of Mergers and Acquisitions.

RELATED FAQS
  1. Are acquisitions only for large companies?

    Learn how mergers and acquisitions, despite what the media portrays, actually take place more often among small companies ... Read Answer >>
  2. How long does it take for a merger to go through?

    Corporate mergers and acquisitions can vary considerably in the time they take to be completed. There are a number of individual ... Read Answer >>
  3. What is the difference between a merger and an acquisition?

    Read about the legal and practical differences between a corporate merger and corporate acquisition, two terms often used ... Read Answer >>
  4. What's the difference between a merger and an acquisition?

    Learn about the difference between mergers and acquisitions. Discover what factors may encourage a company to merge or acquire ... Read Answer >>
  5. Why do companies merge with or acquire other companies?

    Some of the reasons for mergers and acquisitions (M&A) include:1. Synergy: The most used word in M&A is synergy, ... Read Answer >>
  6. How long does it take to execute an M&A deal?

    Read about the mergers and acquisitions process, and find out why the average M&A deal can take half a year to three years ... Read Answer >>
Related Articles
  1. Investing

    Acquire A Career In Mergers

    This exciting sector demands a lot from its advisors. Are you up for it?
  2. Financial Advisor

    Selecting Mergers & Acquisitions Advisories For Small Businesses

    Mergers and acquisitions advisories aren't just for big players. Many advisory firms cater to small and medium businesses.
  3. Investing

    Mergers and Acquisitions: Introduction

    By Ben McClure Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange M&A transactions, ...
  4. Investing

    Mergers and Acquisitions: Definition

    The Main Idea One plus one makes three: this equation is the special alchemy of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and ...
  5. Markets

    8 Reasons M&A Deals Fall Through

    Mergers and acquisitions can mean big success. But what about all the deals that fall through?
  6. Retirement

    How The Big Boys Buy

    Learn what those in-the-know look for when acquiring a company.
  7. Investing

    Owners Can Be Deal Killers In M&A

    A merger and acquisition advisor is often the best choice when selling a company.
  8. Trading

    How Foreign Exchange Affects Mergers and Acquisitions Deals

    Learn how foreign exchange rates can impact the flows of international merger and acquisition (M&A) transactions, and understand how deals can impact exchange rates.
  9. Investing

    Investment Banker: Career Path & Qualifications

    Learn more about the work of investment bankers, and discover how most professionals got started in the field and progressed into their roles.
  10. Investing

    What Investors Can Learn From M&A Payment Methods

    How a company pays in a merger or acquisition can reveal a lot about the buyer and seller. We tell you what to look for.
RELATED TERMS
  1. Mergers And Acquisitions - M&A

    A general term used to refer to the consolidation of companies. ...
  2. Merger Mania

    A period of time with significant merger and acquisition activity ...
  3. Investment Banker

    Someone working at an institution raising capital for companies, ...
  4. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies ...
  5. Predator

    In mergers and acquisitions, a company with sufficient financial ...
  6. Acquisition Premium

    The difference between the estimated real value of a company ...
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center