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. How long does it take to execute an M&A deal?

    Even the simplest merger and acquisition (M&A) deals are challenging. It takes a lot for two previously independent enterprises ... Read Full Answer >>
  2. How does investment banking differ from commercial banking?

    Investment banking and commercial banking are two primary segments of the banking industry. Investment banks facilitate the ... Read Full Answer >>
  3. What are some common accretive transactions?

    The term "accretive" is most often used in reference to mergers and acquisitions (M&A). It refers to a transaction that ... Read Full Answer >>
  4. How can an investment banker switch to a career in corporate finance?

    It's pretty easy for an investment banker to switch to a career in corporate finance. The career skills are easily transferable, ... Read Full Answer >>
  5. What are the best MBA programs for corporate finance?

    Opinions vary based on which publications you consult, but the best MBA programs for a career in corporate finance are at ... Read Full Answer >>
  6. How stressful is the typical corporate finance job?

    In the financial industry, corporate finance jobs are often contrasted with investment banking jobs. The traditional view ... Read Full Answer >>
Related Articles
  1. Investing Basics

    5 Tips For Investing In IPOs

    It’s not easy to profit from IPO​s, but the money is there.
  2. Investing Basics

    5 Tips For Investing In IPOs

    Thinking of investing in IPOs? Here are five things to remember before jumping into these murky waters.
  3. Professionals

    Tips on Building a Resume for a Private Equity Job

    Trying to land a job in the coveted private equity sector? Ensure your resume meets the stringent PE job requirements with these important tips.
  4. Active Trading Fundamentals

    The 4 Biggest Private Equity Firms in London

    Discover information about the largest private equity firms that are headquartered in London, ranked by total assets under management.
  5. Stock Analysis

    Net Neutrality: Pros and Cons

    The fight over net neutrality has become an amazing spectacle. But at its core, it's yet another skirmish in cable television's war to remain relevant.
  6. Personal Finance

    How To Get That Entry-Level Financial Analyst Job

    Landing a job as a financial analyst takes study, strategy and a lot of hard work. Here's how to hone your competitive edge.
  7. Investing Basics

    Explaining Rehypothecation

    Rehypothecation occurs when an asset used as collateral for one party is reused in another transaction.
  8. Personal Finance

    A Day in the Life of an Equity Research Analyst

    What does an equity research analyst do on an everyday basis?
  9. Investing

    Career Choice: Bulge Bracket Vs. Boutique Bank

    Bulge bracket banks offer higher salaries and prestige. But boutique banks are rapidly gaining market share and may offer better work/life balance and job security.
  10. Stock Analysis

    5 Reasons Thoratec Corp. Keeps Impressing Investors

    Learn about Thoratec Corporation and its position in its industry. Understand five key factors why the company has impressed investors.
RELATED TERMS
  1. Investment Banker

    Someone working at an institution raising capital for companies, ...
  2. Weighted Average Cost Of Capital - WACC

    A calculation of a firm's cost of capital in which each category ...
  3. Runoff Insurance

    An insurance policy provision that provides liability coverage ...
  4. Hunting Elephants

    The practice of targeting large companies or customers.
  5. Precedent Transaction Analysis

    A valuation method in which the prices paid for similar companies ...
  6. Poison Put

    A takeover defense strategy in which the target company issues ...

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!