To get into M&A it is essential to have an academic foundation that is strong. This is why most of the most sought-after M&A positions require an MBA. But it also helps to be connected with professors, alumni and others who are able to help get into top companies; networking is key to getting these positions.
Once hired, M&A analysts are charged with constructing financial models that assess the value of two businesses together post acquisition. This requires detailed work around synergies as well as cost of capital, proforma impacts on EdgeCo and IRR. It’s a crucial job and top firms must identify candidates who will thrive in the company culture. To do so they search for candidates who have strong communication skills and the ability to be a team player.
Coordination and teamwork are essential to a successful M&A. When the acquiring and target companies are remote, the process becomes more difficult to manage. But with a modern workplace that supports collaboration, teams are able to stay on track with collaboration and planning throughout the process.
Making sure that the deal is a fit for culture is among the most difficult aspects of M&A. Leaders can often assume that the culture fit will happen naturally after the deal is done, but this can be a risky assumption. The merger attempt between AOL Time Warner failed due to cultural incompatibilities. AOL’s corporate culture of stoicism did not work well with Time Warner’s arrogant, aggressive approach.
To avoid this type disconnection, managers must ensure that employees have a clear understanding of what’s going on. This can be achieved by providing a trusted stream of information that keeps employees interested and helps to dispel rumors, as well as reassure staff about their future at the new company.
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