7 trending skills required to become an M&A Analyst

Elon Musk buys Twitter for $44 billion.

Zomato acquires Uber Eats for Rs 2000 crores.

Air India announces a merger with Vistara airlines.

PVR and INOX cinemas undergo a merger deal.

There are billions of dollars spent on mergers and acquisitions every year. These deals change and manipulate the corporate landscape worldwide. If you opened the business section of any major newspaper, the headlines spoke of nothing else. These transactions affect the landscape of the corporate world. They impact the way the economy functions. Mergers and acquisitions form a niche part of the finance and investment industry. While the world sees only headlines, finance professionals see the intensive and complicated processes behind every major deal. As an M&A analyst, you work with investment banks and advisory services to handle each project meticulously. You and your team are the brains behind the entire project, from ideation to execution. It is an exciting venture in which to work. There is so much growth potential and career opportunities here. You may have an MBA in finance or a CFA certification, but you need several additional skills to get a recruiter to notice you.

To get yourself on of these coveted M&A jobs, keep reading.

The Job Profile Of An M&A Analyst

An M&A analyst can work in one of two profiles —

As a sell-side analyst whose client is the seller or a buy-side analyst where the client is the buyer. Their job is to look for and execute potential deals on behalf of the companies.

M&A jobs have the following set of responsibilities:

• Carry out market research and analysis for prospective clients
• Identify potential targets for M&A
• Create a detailed assessment of the targeted businesses through SWOT analysis and background research
• Facilitate meetings between buyers and seller to ensure the deal reaches completion
• Carry out due diligence to ensure the finances and operations of the company are as shown. This process also looks at legal risk factors within the business.

 
Essential Skills To Be An M&A Analyst

To be a part of this niche industry, you must be well-qualified and possess several specialised skills.

1. Financial modelling certification

You need to know financial modelling if you want to land any one of the M&A jobs that are on offer. This skill aids in measuring the financial performance of the companies considered. It also enables you to carry out a proper risk-benefit analysis. You can build specialised M&A models that can accurately assess the business post-merger and compare it to the individual companies.

The models can help you make projections, compare market situations and an accretion/dilution analysis. With financial modelling, you are able to make better decisions and lower risks. Financial modelling is the most valuable skill of every M&A analyst.

Checkout IMS Proschool’s Financial Modelling Course

2. Expertise in valuation techniques 

Who decides how much a business is worth during the acquisition or merger? As the M&A analyst, you do. It is your job to determine the price of the target company and come up with an authentic valuation. You can compare the organisation to other similar-sized firms bought recently. This is called a comparable company analysis. Financial modelling can also help to create a list of statistics and calculations to measure the business value. You can also do a discounted cash flow analysis to determine the valuation based on future money projections.

3. Create flawless and accurate pitchbooks

Sell-side or buy-side pitch books are created by M&A analysts. They contain all the necessary information about the buyer or seller, including valuation graphs and market positions. As an M&A analyst, you also need to check that all facts and figures are correct and error-free. The visual presentation is also important, so you need good graphical skills to create an appealing pitch book.

4. Accounting skills

An M&A analyst often deals with large sums of money and complex business deals that have to be handled efficiently. This is why you need a special set of accounting skills. The work involves finalising capital structures and accounting for the tax treatments of the transactions. It helps if you are a CA, CIMA or ACCA professional before applying for M&A jobs.

5. Core industry knowledge 

Mergers and acquisitions form a very niche part of the investment industry. As an M&A analyst, you must understand how this domain works and the various nuances within it. You need to be able to study the factors that impact businesses, understand the background of the companies and analyse the information from every angle. You should also be up-to-date on the various developments as and when they occur. Before applying for any of the M&A jobs, you need to have a deep understanding of the industry.

Read – What does it take to build a career in Mergers & Acquisitions?

6. Possess global business awareness

It’s not enough to know what is happening in the domestic corporate arena, you need to be well-versed in international business affairs as well. Companies merge with other firms across the world. Multi-national corporations acquire organisations across borders as well. Your knowledge of the global economy is vital to working on such a large scale. An M&A analyst should also be aware of government regulations and international policies. Ensure you stay educated on all the latest news and developments regularly.

7. Educated in corporate law and merger processes

There is a lot of paperwork that goes into mergers and acquisitions. You need to know the various tenets of corporate law and get a full understanding of the official processes behind mergers. This includes conducting due diligence, researching legal issues and keeping in accordance with intellectual property laws. As an M&A analyst, you need a certification that covers all the essential subjects pertaining to the points mentioned above.

How IMS Proschool’s Financial Modelling course helps you become an M&A Analyst

Before you send out resumes for listed M&A jobs, you need a financial modelling qualification that gets the attention of the recruiters. It helps to get certified with IMS Proschool, one of the first coaching schools to launch a course in financial modelling. The institution is highly acclaimed around the country for offering students a holistic and engaging learning experience that helps them efficiently grasp the subject matter. The course offers two variants — Financial modelling Plus and Financial modelling Advanced. Both are taught by trained and experienced faculty members who use active learning methods and innovative techniques. The program focuses on skill development and knowledge retention. On completion, you are a newly minted M&A analyst, ready to venture into the industry.

Course highlights:

• Proschool offers coaching centres in several major cities, taught by qualified industry experts
• You can also register online if you are unable to attend the classes
• The course teaches different types of models, including the M&A model
• The syllabus includes topics like financial markets, mutual funds, credit appraisal, debt markets, etc.
• Students become highly proficient in advanced MS Excel
• You receive Proschool and NSE certifications
• The school offers a placement program to help students find good jobs
• They also provide grooming skills for interviews
• Once you complete the course, you have an edge as an M&A analyst 

 
In conclusion

There is a high demand for qualified M&A analysts in the industry today. Investment banks, financial companies and advisory firms offer M&A jobs to professionals who have the skills, knowledge and financial modelling training. There is immense growth in this field. International corporations are rapidly expanding across the globe. While domestic companies are merging with other firms. Companies need sharp and savvy M&A analysts to help them get the best deals and make profitable decisions. It is not an easy job. But with the right qualifications, you are well on your way to becoming a valuable asset in this industry.

Learn more about the financial modelling course here