To be able to enter M&A it is necessary to 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 professors, alumni and others who can help find opportunities at top firms and networks are essential to getting these positions.
When hired, M&A analysts are charged with constructing financial models that evaluate the value of two businesses together post acquisition. This requires detailed work on synergies and capital cost and also proforma impacts to EdgeCo and IRR. It’s a critical role and top companies need to find candidates who can thrive within the company’s culture. They seek candidates who are able to communicate effectively and the capacity to work as part of a team.
Coordination and teamwork are essential for a successful merger and acquisition. These processes are more difficult to manage when the acquiring and target businesses are located in different locations. However, with a digital workplace that encourages collaboration, teams are able to remain on track with collaboration and planning throughout the process.
One of the most difficult aspects of M&A is ensuring that a cultural fit works. It is common for leaders to assume that culture fit will come easily once the deal is done, but this can be a risky assumption. For example, the attempted merger between AOL and Time Warner cratered due to huge cultural differences, as AOL’s traditional corporate culture did not match with Time Warner’s brash, arrogant approach.
To prevent this type of disconnection, leaders must ensure that all employees have a clear understanding of what’s going on. This can be achieved by providing a trustworthy stream of information that keeps employees involved, halts rumors and reassures staff about their future at the new firm.
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