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. Why should management teams focus more on horizontal integration?

    Understand the benefits of a horizontal integration and why management teams should focus more on a horizontal integration ...
  2. Why are the terms 'merger' and 'acquisition' always used together if they describe ...

    Learn about mergers and acquisitions and how these two corporate actions differ based on the size and participation of the ...
  3. What level of mergers and acquisitions is common in the chemical sector?

    Examine the current level of mergers and acquisitions among companies in the chemicals sector, a level that has surged higher ...
  4. How can a company buy back shares to fend off a hostile takeover?

    Learn about why a business might use a stock buyback to thwart a hostile takeover attempt by reducing its total assets and ...
RELATED TERMS
  1. Vertical Merger

    A merger between two companies producing different goods or services ...
  2. Horizontal Merger

    A merger occurring between companies in the same industry. Horizontal ...
  3. Advanced Diploma In Insurance

    A qualification earned by insurance professionals and conferred ...
  4. Associate In Personal Insurance (API)

    A designation earned by professionals looking for training in ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative ...
  6. Associate In Reinsurance (ARe)

    A designation earned by insurance professionals looking for reinsurance ...

You May Also Like

Related Articles
  1. Entrepreneurship

    How Microfinance and Investment Banking ...

  2. Entrepreneurship

    Should I Have An IPO on My Business

  3. Active Trading Fundamentals

    Who are Berkshire Hathaway's (BRK.A) ...

  4. Professionals

    Top Strategies on How to Become a Stock ...

  5. Fundamental Analysis

    Why Investment Bank IPO Valuations Go ...

Trading Center