Investment Banking

Roles and Responsibilities of M&A Professionals in Investment Banking

Mergers and Acquisitions (M&A), one of the major aspects of corporate finance refers to the process of combining the companies with one another. A merger is the combination of two firms forming a new legal entity under one corporate name. In an acquisition, one company purchases the other. The acquired firm will not change name or structure but is owned by the parent company.

Merger and acquisition deals are beneficial in many ways. A few of them are:

  • Improved economies of scale
  • Increased market share
  • Expanded geographic services
  • Reduced labor costs
  • Improved labor talent

To beat the heat of increasing competition and pressures everywhere, many companies are engaging in M&A activity. They tend to expand and streamline their business. To do so, they depend on the investment banking industry seeking advice on targets or buyers, including valuation. In a way, M&A forms a division of investment banks.

Here is a brief note on investment banks’ role in mergers and acquisitions. Take a look.

Role of investment banks in mergers and acquisitions

The main functions of an investment bank in mergers and acquisitions involve valuation, deal sourcing, and financing.


Establishing a fair value is the most important aspect involved in the transaction and investment banks excel at calculating the business worth. They predict the worth of alteration, construct financial models, capture the fixed and variable financial components that will influence the overall value based on countries, sectors, and markets too. Investment banks also provide advice on arbitrage opportunities for clients.

Moving forward, let’s understand what exactly the M&A team or professionals of an investment bank do here.

Deal sourcing

Investment banks study the market and approach companies with their strategic ideas. They act either from the seller side or buyer side.

Investment banking representing the seller side finds a buyer for the entire or part of the company or its assets. They prepare a seller memorandum and contact strategic buyers for their clients. Investment banking representing the buyer side contact the firms for purchase, structure an acceptable offer, and make a deal successfully.


Buying a company requires funds. It can be raised either by selling shares or raising debt financing. At this stage, investment banks value the company, introduce new securities, examine the market, determine the best price, and find buyers. Investment banks act as both buyers and sellers and are the market makers in a true sense.

Roles and responsibilities of M&A team

From the investment banking industry’s viewpoint, they act as advisors for clients on mergers and acquisitions. They tend to form an industry-specific team such as FMCG, engineering, technology, financial services, manufacturing, and information technology.

Here is a detailed note on their main responsibilities. An M&A professional must be able to:

  • Identify target companies and examine deals
  • Evaluate industry prospects based on competition and market share
  • Evaluate companies based on financial statements
  • Conduct due diligence, valuation, and appraisal
  • Make reasonable assumptions for deals
  • Estimate a fair price while paying the target company
  • Create shareholder value by mitigating associated risks
  • Promote association of customers and employees of the participating companies
  • Complete the integration of the participating parties amicably

There exists a hierarchy within the M&A professionals. The various position in the hierarchy includes Analysts – entry-level to their-year, Senior Analysts, Director, Principal. The top-most position is that of Managing director or partner.

With this brief, let us see how to bag a job under this domain.

Getting into the investment banking industry as an M&A professional

It is regarded as one of the most valuable professions in the finance sector. To gain a competitive advantage, it is recommended to earn industry-relevant investment banking certifications and stay updated with the industry trends. An MBA from Tier-1 universities is highly desired to get into top investment banks.

A few of the top investment banking firms in the world include JP Morgan, E&Y, Deloitte, KPMG, and Rain Makers.

Practicing M&As demands a stronghold in accounting, law, strategy, finance, and business. Many professionals have law degrees too along with an MBA. Certifications like Chartered Investment Banking Professional (CIBPTM), Certified Public (CPA) Accountant, or Chartered Financial Analyst (CFA) will help to land a job in M&A.

Put your best foot forward to acquire a position. Apart from all these qualifications, possess advanced knowledge in mathematics, leadership, communication, negotiation skills, decision-making ability, electronic market trading, and marketing software programs.

The average salary for Executive salary in the United States is USD 307, 735. The typical range of salary falls between USD 261,691 and USD 382, 194. Moreover, the salary varies depending on factors like education, investment banking certification, additional skills, and years of experience reports.


As mentioned earlier, M&A is one of the top-favored careers. Bank on your analytical skills, technical skills, reskilling, and upskilling through investment banking certifications, networking, and experience to improve your career opportunities.


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