Mergers and acquisitions (M & A)

Mergers and acquisitions (M & A) is one of the most lucrative lines of business for an investment bank. The banks advise clients on mergers and takeovers for a fee that is usually a percentage of the value of the deal.

M & A activity follows a cycle of its own. In good years High M & A activity both makes a lot of money for investment banks, and boosts share prices.

It is not only investment banks that make money from M & A. Accountants and lawyers are also needed to complete the deal: for example, to do due diligence work. Accountants may also get an opportunity to get more business out of the integration work needed after a deal to combine systems, to unify financial reporting and the complexities of accounting for a combination itself.