It is impossible for a fresh Chartered Accountant to get a job in the mergers and acquisitions industry but here are the following requisites that the companies in this industry require by the CA:
1- Financial modelling.
CAs have zilch knowledge about building models. To add to the misery, 90% CAs struggle with Excel. When I was doing my Advanced ITT, more than 60% of the class had never used a Vlookup in their life/article ship! It felt horrible to witness such a scene. And then the CA fraternity whines about good companies not picking them up. No shit, duh.
2- Valuation techniques.
Again, apologies to burst your bubble but whatever valuation we learn in our CA books is of little or NO use against what you do practically.
3- Deep industry knowledge.
Barely industry knowledge exists amongst fresh CAs. Those who’ve done audit will have good knowledge about the company they’re working on.
If you feel otherwise, pick up your favourite industry and ask yourself these questions – What’s the average PE of the industry? What’s the average EV /EBIDTA? What’s the average and median EV/sales? Which company is an outlier from a valuation perspective and hence should be ignored?
If you can’t answer the above mentioned questions, I’m sorry to say you won’t be able to make it into a M&A firm as a fresher CA unless you have a pull, or course.
Marketing intern in CA Learning