It’s no surprise that M&A Analyst roles are among the most sought-after among recent graduates. The presence of so many investment banks that receive the most applications from college grads confirms it.

We break down the ins and outs of becoming an M&A Analyst, so you can get your foot in the door.

So, what is an M&A Analyst?

It’s the most junior role at an investment bank or the M&A department of an organization involved in mergers and acquisitions. An M&A Analyst assists more senior investment bankers at the beginning stages of the deal.

The M&A Analyst is a jack-of-all-trades, taking on a range of tasks. This includes financial modeling, analysis of deals and companies, market research, and client interaction. With these skills, an M&A Analyst is a vital part of any M&A team.

What education do I need to become an M&A Analyst?

If you’re looking to become an M&A Analyst, the most common routes are to pursue degrees in business, economics, finance/accounting, mathematics, or engineering. However, there are exceptions – some investment banks specialize in certain industries and may hire M&A Analysts with backgrounds in those industries as they can provide unique insights. In these cases, it is important to gain a quick understanding of accounting and valuation.

If you don’t have a degree in one of these majors, the best way to start a career as an M&A Analyst is to pursue a professional qualification such as the CPA or CFA. This process typically takes 2-3 years, but you can still apply for roles after passing the first level. To become a successful M&A Analyst, you should also work on developing the skills that are required in this field, such as analytical thinking, financial modeling, and negotiating.

What does an M&A Analyst do?

An M&A Analyst assists more senior investment bankers in the early stages of M&A deals.

The M&A Analyst is usually an all-rounder that takes on a range of roles. Typical tasks include:

Valuations

Valuations are the bread and butter of M&A Analysts. These days, there is simply no way that someone will gain an M&A Analyst role without at least some capability in company valuations. A good chunk of the M&A Analyst’s time is therefore tied up in Excel spreadsheets.

Research

Investment memorandums tend to be full of information from databases and online sources such as Thomson Reuters Datastream and Capital IQ. The M&A analyst will often be responsible for retrieving and organizing this information for M&A associates.

Analysis

Analysis is a broad term, but accurately describes much of what the M&A Analyst does. The list is long here but includes an analysis of a company’s recent quarterly reports, an analysis of a company’s industry peers, an analysis of industry reports, and an analysis of previous transactions in the client company’s industry segment.

Investment memorandums

Although investment memorandums are usually the responsibility of M&A Associates, certain aspects will be delegated to M&A Analysts. The ability to communicate well, both written and orally, is central to the career progress of the M&A Analyst.

Wrap Up

If you’re looking for a challenging and rewarding career, consider becoming an M&A Analyst. The demand for M&A professionals has grown significantly over the past decade, creating many opportunities for those eager to enter the industry. With the right skills and experience, you can have a successful and rewarding career in this field. So don’t wait – begin your journey toward becoming an M&A Analyst today.