Mergers and acquisitions, often referred to as simply M&A, jointly refer to processes by which one company combines with another. While this is often discussed as a single topic, and is often handled by the same “M&A” department within a financial institution, they represent two distinct pathways to achieving the same end. Under a merger, two companies of roughly equal size mutually agree to join together as one new combined entity; in an acquisition scenario, a larger company takes over another firm, with or without its consent, with the acquiring company keeping its name and the target firm ceasing to exist.

M&A activity is one of the most important and high-profile aspects of the corporate finance world, as these transactions can dramatically alter the competitive position of massive firms and reshape the industries in which they operate. As a matter of strategic management, the goal of M&A is to create new value through consolidating the resources, market reach, or other beneficial synergies. However, while careful due diligence and financial analysis is carried out by stakeholders on all sides of these high-stakes transactions, there are as many failures as successes in this field.

Because M&As can be some of the most important events in a company’s development, key decision-makers such as chief executive officers (CEOs) and chief financial officers (CFOs) need to understand the mechanics and the potential consequences of these moves.

Financial institutions also play an integral role in facilitating mergers and acquisitions, from guidance on issues such as financing strategies and valuations to the provision of the capital needed to make these deals possible. As such, a wide variety of finance analysts and other professionals in the industry need to have expertise in evaluating M&A transactions to assist their corporate clients.

According to the Bureau of Labor Statistics, financial analysts in investment-related activities such as made a median annual salary of $101,410 as of 2018. These jobs typically require at least a bachelor’s degree in subjects like accounting, economics, or finance, although a master’s degree in finance or business administration can help prospects for advancement.

Yes. Coursera offers business and finance courses and Specializations of all kinds, including courses on mergers and acquisitions and related topics like corporate finance and strategy. No matter where you live, you can learn remotely from top-ranked universities from all over the world, including the University of Virginia, the University of Illinois at Urbana-Champaign, Erasmus University Rotterdam, and American Institute of Business and Economics. You can learn the same material from the same instructors as on-campus students on a flexible schedule and at a much lower tuition, making the decision to learn on Coursera an easy one for students and mid-career professionals alike.