If you are keen to land a job in investment banking, you are most likely aware of one of its major divisions — mergers & acquisitions. This is such a common subset that a majority of the 3,000 investment banks specialise in M&As and capital raising. While it sure does sound like a dazzling career choice, it’s also a highly competitive one.
Those working in M&As are usually riding on very high stakes. Mergers and acquisitions are concerned with either the amalgamation of two firms or one firm purchasing the other. This includes extensive research, strategic thinking, consolidations, tender offers, and purchase of assets, among other things. A high-profile acquisition case currently rocking the news globally, for example, is Elon Musk’s takeover of Twitter for $44 billion. Yes, you read that right!
So, if you’ve made up your mind to kickstart a career in M&As, we share 3 ways that can help fast-track your journey and boost your chances:
1. Kill the Skills
There’s no circumventing this — you need a solid understanding of at least one of the following: accounting, business, finance, or strategy. It’s not necessary to hold an advanced degree but many M&A professionals have MBAs and some even law degrees. If you further have certifications such as Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA), these can improve your odds of landing a top-notch role.
It’s also not sufficient to have only theoretical knowledge of the above subjects. You should be able to analyse financial health instruments such as income statements, balance sheets, and cash flow statements. It’s also beneficial to have an understanding of business valuations.
Among other skills, you should work to hone your strategic thinking, negotiations, analytical, problem-solving, and data mining acumen. One must also be piqued to understand global markets. Lastly, how good are you at managing your time and stress? In a high-pressure job such as that of an M&A advisor, you need to be able to stay sane in pressing situations.
2. Initiate, Intern, Impress
An internship can be the springboard to landing your desired role in M&As. They not only open doors for jobs but also prepare you for the role through practical training. If you have the opportunity to work at an investment bank under the M&A division, go for it. This will sculpt you for what’s to come and will also help you figure out whether the role is a right fit for you.
Chances are that during an internship like this you will get the golden opportunity to witness an M&A deal in action. It will be a key time to exhibit your skills and allow people to recognise you. Take initiative, ask questions, help however you can, and most importantly, network. This real-time professional environment is an unmatched opportunity to get on the good side of key executives in the IB and M&A fields. So, don’t hesitate to make an impression.
To bag such coveted internships, start your search early. Apply through LinkedIn, your university’s career placement unit, cold e-mailing, and make optimum use of essential resources that can strengthen your profile such as FMI’s Career Buddy programme.
3. Sharpen with Simulations
Ultimately, you need to bank on practical experience when beginning to work in M&As. While internships are the foremost source to gain this, you can also practice with simulations, which come impeccably close to the real experience. With simulations such as this hour-long one by FMI, you can sharpen your asset selection and portfolio constructions. Using the information provided, you will learn how to assess stocks and their performance, weigh the investments in your fund, watch the impact of external events on your portfolio, and ultimately, make an informed decision.
Conclusion
If your mind is set on a career in Investment Banking, then M&As is one of the most lucrative options for specialisation not just for its financial rewards but also for how professionally and intellectually stimulating it is. You are part of the team in charge of selling, buying or merging a company, and executing that efficiently and smartly can set you apart from the crowd. However, that’s only possible when you have an unwavering foundation — one that rests on a solid education and technical skills, practical work experience through internships and simulations, and a reliable network.
60+ hours
9 courses
