Despite an ongoing lull in the mergers and acquisitions (M&A) industry, this sector remains an attractive destination for aspiring professionals.
While the rewards can be immense — prestige, high salaries, and career growth — the path is anything but easy. Tight deadlines, demanding requirements, and fierce competition are only a few of the potential challenges.
So how to work in mergers and acquisitions, and most importantly, how do you get there with little or zero experience? This article investigates the M&A career path and suggests actionable insights.
Exploring the M&A career landscape
Let’s first define what roles you can expect in the M&A industry.
Here’s what the common mergers and acquisitions career path looks like:
| Role level | Job titles |
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| Entry-level roles |
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| Mid-level roles |
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| Senior-level roles |
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| Executive-level roles |
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| Specialized roles |
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Here’s a concise breakdown of each role’s responsibilities in dividing, selling, merging, and restructuring companies during M&A transactions:
- Analyst
Analysts are the backbone of M&A teams. They handle research, create financial models, analyze financial data, and prepare presentations. Their work helps senior team members make informed decisions.
- Associate
Associates take on a more client-facing role, supporting deal execution. They review financial models, draft reports, and coordinate with different stakeholders involved in a transaction.
- Vice President (VP)
VPs oversee analysts and associates and ensure their work aligns with the deal’s objectives. They interact directly with clients, lead negotiations, and are responsible for business management of different parts of the deal process.
- Director
Directors focus on business development, securing new deals, and building trustful long-term relationships with clients. They provide strategic guidance and ensure deals progress smoothly.
- Managing Director (MD)
MDs are at the top of the M&A hierarchy and are responsible for how the M&A team succeeds (or fails) with the deal management. They set the firm’s strategic direction, build networks, and close major deals.
- Specialized experts and advisors
These are responsible for a specific area. Legal advisors focus on the legal aspects of transactions, such as contracts and regulatory compliance. Valuation experts assist with determining the value of companies involved in deals. Integration specialists ensure smooth post-merger integration.
All these mergers and acquisitions professionals can be employed in investment banking companies, private equity firms, or in-house M&A teams. Also, they all can work either with sellers or potential buyers.
What is M&A advisory? Learn their key roles, functions, and costs.
How challenging is it to enter the mergers and acquisitions industry?
Entering the M&A industry can be challenging due to high competition, demanding skill sets, an intense work environment, and experience requirements. However, it’s achievable with the right approach.
Here are the key things to consider if you’re thinking about how to get a job in mergers and acquisitions:
- Education
It’s often essential to have a bachelor’s or master’s degree in business, finance, or economics. Top-tier universities or business schools can provide an edge.
- Skills development
Master key skills such as financial modeling, valuation techniques, and market analysis. You should also know Excel and other specialized software.
- Internship
Gain hands-on experience through internships at investment banks, financial advisory firms, or private equity companies.
- Networking
Build relationships with industry professionals by attending events, joining finance-focused groups, and connecting on LinkedIn.
- Certification
Consider getting additional certifications to enhance your credibility and technical expertise.
- Persistence
Breaking into the industry may take time, especially if you lack direct experience. Stay proactive by learning continuously and seeking mentorship opportunities.
We provide actionable insights on each of these considerations further.
Required skills for M&A professionals
To become a part of a private equity firm or one of the investment bankers who help two companies join forces and reach synergies, an aspiring candidate should have a certain set of skills. Let’s divide them into soft and hard ones.
Hard skills
- Financial analysis
The ability to read and interpret financial statements is essential in M&A. You’ll analyze company performance, assess profitability, and identify areas of risk or opportunity.
- Valuation techniques
It’s a must to know and understand methods like discounted cash flow (DCF), comparable company analysis, and precedent transactions, which are critical for estimating the value of target companies.
- Financial modeling
Building detailed financial models allows you to project cash flows, profits, and deal outcomes. This skill is crucial for assessing whether a merger or acquisition will deliver the expected results.
- Market research
Industry knowledge, along with understanding competitors and economic trends, is essential for identifying potential M&A opportunities. This research ensures that deals align with market realities and strategic goals.
- Technical tools
Proficiency in Excel, PowerPoint, data analysis tools, and pipeline management systems is non-negotiable. Familiarity with financial software like Bloomberg or FactSet adds efficiency to deal preparation.
- Legal and regulatory knowledge
M&A professionals should have at least basic legal industry expertise to understand the legal aspects of deals, including compliance and due diligence. This knowledge helps ensure transactions meet regulatory requirements.
Soft skills
- Communication skills
M&A professionals should be able to establish transparent communication with all parties involved in a deal and clearly explain complex financial concepts to clients and teams. It also involves creating impactful presentations and writing detailed reports.
- Negotiation skills
Successfully navigating deal terms requires strong negotiation skills. These help secure favorable outcomes while maintaining professional relationships.
- Problem-solving
M&A deals are complex and often involve unexpected challenges. That’s why the ability to think critically and develop creative solutions is always highly appreciated.
- Attention to detail
Even the slightest mistake can lead to disastrous consequences in M&A deals. Precision in financial models, legal documents, and financial reports ensures the success of transactions.
- Time management
M&A professionals often juggle multiple deals and tight deadlines. Strong organizational skills help maintain efficiency and meet goals on time.
- Teamwork and leadership
Collaboration with cross-functional teams is crucial for executing deals. As you progress, leadership skills will help you guide projects and mentor others effectively.
Who is an M&A broker, and how do they differ from business advisors? Explore in our dedicated article.
Educational pathways to M&A
An M&A career typically starts with a strong academic foundation in business, finance, or economics. Later, you strengthen your expertise with specialized programs and additional education.
Let’s explore the key educational routes:
- Formal education
A bachelor’s degree in finance, economics, financial accounting, or business is the non-negotiable starting point for an M&A career. Here, you learn critical skills like financial analysis, valuation, and budgeting, which are essential for M&A roles. You also get an understanding of financial markets, company strategies, and business operations.
- Specialized M&A programs in business schools
Some business schools offer courses or full programs focused on M&A. These programs dive into topics like deal structuring, due diligence, and financial modeling. They often include real-world case studies and projects to give students practical insights. This makes them excellent for building specific expertise which can set you apart in the job market.
- MBA programs
An MBA (Master of Business Administration) is a valuable degree for advancing in M&A, especially if you aspire to leadership roles. Top MBA programs include electives on corporate finance and strategy and offer networking opportunities with industry experts and alumni.
- Certifications and additional education
Certifications like CFA (Chartered Financial Analyst) or CPA (Certified Public Accountant) boost your credentials. They demonstrate expertise in financial analysis and compliance, making you a stronger candidate for M&A roles.
Select the best M&A certification program among the top eight courses described in our dedicated article.
Gaining practical experience
Whereas industry knowledge is important, it might not be enough for M&A firms to hire aspiring analysts. What matters here is a practical experience. Sometimes, it even helps to skip entry-level roles and get a mid-level position.
But how to get into M&A if you lack practical experience and only have theory in your baggage? Here are the most common options:
- Internship
This is one of the best ways to gain practical experience in M&A as it allows you to work on real M&A deals, help with research, and build financial models. Look for internships at investment banks, financial advisory firms, or corporate development teams. These opportunities lead to deal-making and give you a chance to work with experienced professionals.
- Industry networking
Building connections in M&A allows you to meet professionals who can guide you, offer job leads, or provide insight into the latest industry trends. Attend industry events, conferences, or webinars, and join professional organizations. You can also connect with M&A professionals on LinkedIn and reach out for informational interviews or mentoring opportunities.
- Entry-level roles
After completing your degree or internship, entry-level roles can offer more responsibility and deeper involvement in M&A projects. You’ll likely assist in financial analysis, due diligence, and preparing presentations for clients. It’s a great chance to build your technical skills.
Seven tips to prepare for interviews in M&A
Follow these recommendations to shine during the interview in M&A:
- Understand M&A basics. Ensure you know the key terms like due diligence, valuation, and synergies and understand how M&A deals work from start to finish. Focus on simple terms and practical examples.
- Research the company. Find out what industries the company works with and its recent deals. Use this information to tailor your answers and show that you’re a good fit for their team.
- Practice technical skills. Brush up on financial modeling and valuation methods and be ready to solve case studies or walk through financial calculations.
- Prepare for behavioral questions. Think of examples where you showed teamwork, problem-solving, or leadership. To make your answers clear and organized, use the STAR method (Situation, Task, Action, Result).
- Know the market. Read about recent M&A deals and market trends to understand the industry. It will help you stand out when discussing real-world examples.
- Polish communication skills. Practice explaining financial concepts in simple terms. This will help you show you can work well with clients and team members.
- Prepare smart questions. Think of thoughtful questions about the company’s strategy or recent deals. This shows your interest and enthusiasm for the role.
Challenges and realities of an M&A career
A career in M&A can be exciting and financially rewarding: the average M&A salary ranges from $137,000 to $262,000 annually.
However, being an M&A professional also comes with challenges. Here are some of them:
- Long working hours
M&A deals often have tight deadlines, requiring professionals to work late nights and weekends — it might take as long as 90 hours per week. This can lead to burnout and a poor work-life balance, especially during critical stages of a deal.
- High level of stress
Handling multi-million or even billion-dollar transactions involves intense pressure. Professionals must ensure every detail is accurate, as even small mistakes can put clients and firms at huge financial risks.
- Complex deal structures
M&A deals can be intricate, involving cross-border transactions, regulatory hurdles, and unique financial arrangements. Professionals must stay updated on global market trends and legal requirements, which can be overwhelming.
- Unpredictable job security
The M&A industry is tied to the economy. During economic downturns, deal activity may slow, leading to job cuts or fewer opportunities for advancement.
- Competitive environment
The field attracts some of the brightest minds, making competition intense. Standing out requires continuous learning, networking, and delivering consistent results.
- Changing technology
AI and data analytics are reshaping how deals are evaluated and executed. Professionals must adapt quickly to new tools and processes, which can be challenging for those unfamiliar with these technologies.
Key takeaways
- The main M&A roles are analyst, associate, Vice President, Director, and Managing Director. Additionally, there are specialized roles such as legal, integration, or valuation experts.
- To get into the M&A industry, a person should have a solid combination of hard and soft skills, including financial modeling, valuation, communication skills, and understanding of the market.
- The educational pathway to M&A starts with formal education, which can be further supplemented with specialized M&A programs, MBA programs, and additional certifications.
- To stand out from the crowd, an aspiring candidate should also get practical experience through networking, internships, and entry-level roles.
- Among the main challenges of an M&A job are long working hours, a competitive environment, changing technology, complex deal structures, unpredictable job security, and high levels of stress.
