Mergers and acquisitions can be an excellent way of adding to the human capital of a business.

When Goldman Sachs acquired J. Aron & Co., a small trading company, in the early 1980s, one of the traders they took on ended up being the company’s CEO. This isn’t uncommon.

Other examples include the Walt Disney Company hiring future CEO Bob Iger in the acquisition of ABC, and even JP Morgan bringing future CEO Jamie Dimon on board after acquiring Bank One in 2000.

These examples — and their success — underline the value of conducting HR due diligence in M&A.

Tax is arguably the least discussed of all motives for conducting mergers and acquisitions.

Managers undertaking M&A tend to be less keen to espouse the tax benefits of a deal — probably wishing to avoid accusations of tax avoidance — than they are to talk up how it gives them a platform for future growth.

Tax is not a dirty word, however. Whenever you’re involved in M&A, it makes absolute good business sense to understand the implications for your company’s tax obligations that a transaction will have.

In this article, we at DealRoom look at how to conduct tax due…

operational due diligence

Operational due diligence may be the most forward-looking kind of due diligence that exists.

The aim here is not to look over several years of past performance, but rather to project into the future and assess how value creation will be sustained into the future with the target company’s operations.

Hundreds of DealRoom clients conduct their operational due diligence using our M&A platform, allowing them to take advantage of our operational due diligence template.

In this article, we look at how to conduct operational due diligence, as well as providing a checklist of the items that require attention to ensure…

Every now and then, an investment banker should take time out to read some of the fantastic literature that exists on the field.

A frustration when looking for good books on investment banking is how many people consider books on trading to be investment banking.

And although there are some great books out there on trading, it’s all a long way from investment banking. With this in mind, we have put together the following list:

Best Books For Investment Bankers

  1. Barbarians at the Gate by Brian Burlough and John Helyar
  2. The Partnership: The Making of Goldman Sachs by Charles D. Ellis
  3. Buffett: The Making of…

Investment Banking Career Tips

Investment banking roles are among the most sought after of any careers in the wider field of finance.

The large investment banks have an ongoing cachet that most companies can only aspire to — endowing on their employees an alluring mixture of intellectual prowess and prestige.

But investment banking isn’t just restricted to Wall Street alone. There are now thousands of investment banks of various sizes and niches operating across the United States.

DealRoom deals with dozens of investment banks every year giving it some insight into this industry.

In this article, we look at some of the specifics of…

Following influencers on LinkedIn can be a fantastic way of gaining insights into the world of M&A and finding out what matters from the people at the top end of the market.

We’ve put together a list of 10 M&A influencers that we believe you can benefit from following.

Their rank includes heads of investment banks, a Stern Business School professor of finance, and a few journalists. Follow them all and gain from their wisdom every time you log on.

Top M&A Influencers to Follow

10 of the Most Famous Leveraged Buyouts
10 of the Most Famous Leveraged Buyouts

Leveraged buyouts are often a better idea in theory than in practice: It’s all very well to saddle a company with debt to take it over, the problem is that it also has to operate with that debt on its balance sheet in the years that follow.

Dozens of deals are a testament to the fact that this fine balance isn’t always easy to achieve.

Below, we look at some of the most well-known LBOs in history and find that there are as many successes as failures to report since the first LBO over half a century ago.

The Most Famous Leveraged Buyouts (LBOs) in History

  1. RJR Nabisco…

writing a perfect acquisition proposal
writing a perfect acquisition proposal

Approaching a target company can be a delicate act.

As a general rule, the closer the competition that the target represents to your own company, the more delicate the approach should be.

For this reason, many business owners chose to use an intermediary such as an attorney or an investment banker as a proxy. However, this risks coming off as impersonal at a time when you should be building affinity.

A well-written letter, on the other hand, is likely to achieve everything that an approach by an intermediary will, while also carrying a personal touch that many owners will warm…

By virtue of their very nature, large conglomerates have all conducted M&A at some stage in their past.

Conglomerates are usually defined as a multi-industry company, and they’ve invariably become multi-industry through acquisitions.

Some of the biggest conglomerates in the world are now the companies that come up in everyday conversation: Mars, P&G, Nestle, Philips, General Electric and more. Below, we look at the ten largest acquisitions ever made by conglomerates.

By virtue of their very nature, large conglomerates have all conducted M&A at some stage in their past.

Conglomerates are usually defined as a multi-industry company, and they’ve invariably…

The rise of online platforms which allow people to buy and sell businesses has brought M&A to the doorstep of hundreds of thousands of small business owners.

The fact that profit-generating businesses can now be picked up for less than a million dollars means that deal making is no longer just the realm of blue chip companies: now a small business owner can quickly become a medium-sized business owner through a carefully planned acquisition strategy.

The key phrase here is ‘ carefully planned ‘. …

Marsha Lewis

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store