Guide To Become Successful Mergers and Acquisition Consultant

Through an integrated and result-oriented approach that links merger integration, diligence and acquisition strategy, the merger & acquisition consultants improve the odds of successful mergers and acquisition. The median salary for consultants in the United States is $71,550, according to the U.S. Bureau of Labor Statistics. This post will help students learn about the education, training, licensing information and experience required, for starting a career in mergers and acquisition consulting.

• Role and responsibilities of merger and acquisition consultants

They act as financial consultants when one firm acquires another organization. They also act as financial experts when two or more companies merge into one. They provide advice to firms on how to handle and manage the acquisition and merger process in the most hassle-free manner. Apart from being highly stressful, this fast-paced career requires candidates to travel often.

• Acquisition Strategy

They help organizations to decide where to invest and where to divest in line with the corporate strategy.

• Divestitures and Separations

They work alongside firms to manage their portfolios and decide where to shed and where to grow.

• Joint Ventures and Alliances

They assist clients throughout the joint venture processes. This includes strategy development, partner selection and operating implementation.

• Educational Requirements

For entry-level positions as merger and acquisitions consultants, one must have bachelors’ degree in economics, finance, business and accounting. Many mergers& acquisitions consulting firms hire candidate with a Master of Business Administration (MBA) for senior level positions. They have to clear mandatory licensing exam conducted by Financial Industry Regulatory Authority (FINRA), for advancement in the industry.

Key skills needed for becoming successful consultants are:

• Knowledge of company acquisitions strategies and the merger process
• Strong mathematics
• Strong communications skills
• Negotiation skills
• Sound judgment
• Decision-making abilities
• Attention to detail
• Electronic market trading
• Market forecasting software programs
• Financial business law

Here are the steps to follow to become consultants for mergers and acquisitions

• Step 1: Earn a Bachelor’s Degree

Many degree programs prepare individuals for careers in mergers and acquisitions. Major in finance, accounting, economics and business, are very popular among students interested in making a successful career as consultants, in accordance to the U.S. Bureau of Labor Statistics. Students need as much employment experience as possible, in order to become experts for mergers and acquisitions.

Many students build their experience in this domain through internships with reputed and esteemed financial institutions. Many interns who manage to impress their superiors may be offered more permanent positions after education completes.

• Step 2: Become Licensed

They must be licensed and registered through FINRA. Getting the license involves passing examination and there are many different classifications of financial and banking professionals.

2.1. Series 79 Licensing Examination

The consultants are classified as limited representatives in the field of investment banking as they specifically require undergoing the series 79 licensing examinations. Once a candidate passes the licensing examination, they must be sponsored by an individual or a registered FINRA financial firm. This examination consists of 175 multiple-choice questions that should be completed within five hours.

Topics of questions asked in the series 79 licensing examinations may include:

• Mergers and acquisitions
• Principal trading markets
• Securities and Exchange Commission rules
• Underwriting
• Data collection
• Business conduct
• Due diligence activities

• Step 3: Get Certification

It is usually a voluntary process but many professionals choose to get certifications. The Chartered Financial Analyst (CFA) certification is one of the most popular credentials that many professionals earn. Four years’ experience in the financial industry and a bachelor’s degree are preferred.

Passing examination and completing coursework are involved in the CFA certification process. Asset valuation, investment tools, and portfolio management, are three examination areas of CFA certification. One must complete a group of training modules prior to each exam. They have to pass before moving on to the next level. They become certified, after passing all three levels of examination.

• Step 4: Maintain Certifications and Licensure

Consultants must maintain their licensing through FINRA. Completing a 2-part continuing education program every three years is one of the essential parameters for the renewal of license for FINRA. Within two years of being licensed, newly licensed individuals have to complete their first CE program.

• Final Thought

The primary purpose of consultants is not to grow big fast, but for firms to do what they do better. Consultants for mergers & acquisitions offer clients a disciplined approach for deal making, corporate finance strategy and end-to-end mergers & acquisitions.