How can you develop technical skills for M&A career progression?

1 Learn the basics

The first step to develop your technical skills is to learn the basic concepts and frameworks that underpin M&A transactions. You should have a solid understanding of accounting, finance, economics, and corporate strategy, as well as the common types, structures, and drivers of M&A deals. You should also be familiar with the key financial statements, ratios, and metrics that are used to assess the performance, profitability, and value of a company. You can learn these basics from textbooks, online courses, podcasts, or blogs, but make sure you choose reliable and reputable sources that are relevant to your industry and geography.

2 Practice financial modeling

One of the most important technical skills for M&A is financial modeling, which involves building and analyzing complex spreadsheets that project the financial outcomes and implications of a potential deal. Financial modeling requires a high level of proficiency in Excel, as well as the ability to apply various valuation methods, such as discounted cash flow, comparable companies, precedent transactions, and leveraged buyout. To practice financial modeling, you can use online platforms, such as Wall Street Prep, Breaking Into Wall Street, or Corporate Finance Institute, that offer tutorials, templates, and case studies that simulate real-world scenarios. You can also join competitions, such as the Financial Modeling World Cup or the CFA Institute Research Challenge, that challenge you to solve real M&A problems and present your solutions.

3 Stay updated on the market

Another way to develop your technical skills for M&A is to stay updated on the market trends, developments, and news that affect your industry and sector. You should follow the major M&A deals that are announced, completed, or failed, and analyze their rationale, valuation, structure, and impact. You should also monitor the macroeconomic factors, such as interest rates, inflation, exchange rates, and regulations, that influence the M&A activity and environment. You can use sources, such as Bloomberg, The Wall Street Journal, Financial Times, or Dealogic, to access relevant and timely information and insights. You can also subscribe to newsletters, podcasts, or blogs, such as Mergers & Inquisitions, The Deal, or Mergermarket, that specialize in M&A topics and analysis.

4 Network with professionals

A fourth tip to develop your technical skills for M&A is to network with professionals who work in the field and can share their experience, advice, and feedback. You can connect with M&A practitioners from different backgrounds, roles, and levels, such as bankers, analysts, consultants, lawyers, or accountants, and learn from their perspectives and best practices. You can also ask them for referrals, recommendations, or introductions to potential employers, clients, or mentors. You can network with professionals through online platforms, such as LinkedIn, Wall Street Oasis, or eFinancialCareers, or through offline events, such as conferences, workshops, or alumni gatherings, that are organized by your school, employer, or industry association.

5 Showcase your skills

The final tip to develop your technical skills for M&A is to showcase them in your resume, interviews, and projects. You should highlight your relevant education, training, certification, and experience that demonstrate your technical competence and knowledge. You should also prepare a portfolio of financial models, valuations, or analyses that you have created or contributed to, and explain how they supported the M&A process and outcome. You should also be ready to answer technical questions, such as how to value a company, how to structure a deal, or how to adjust for synergies, that test your M&A skills and logic. You should also seek feedback, improvement, and recognition for your technical work and performance.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?