M & A Drives Demand For Transaction Services Professionals
The continued buy-out boom is providing a windfall for transaction advisory groups, and accounting firms are staffing up to ride the wave of mergers and acquisitions. Thanks to a steady stream of large-scale mergers, buy-outs and corporate spin-offs, the need for transaction services professionals has grown dramatically. Even now as rising global interest rates and concerns over cyclical peaks threaten the surge in private equity buyouts, demand for qualified TS professionals remains fierce. According to Mitch Feldman, President of executive recruiting firm, A.E. Feldman, the field remains highly competitive, as businesses continue to seek advice on how best to run their businesses and take advantage of good conditions.
The combined value of M&A deals announced worldwide during the first half of the year rose to $2.7 trillion, according to Thomson Financial. That’s a staggering 62% increase. Thomson also reports that deals involving U.S. targets totaled $845 billion during the first five months of 2007, more than half of the total for 2006.
M&A activity will continue to accelerate through 2007 as deal values soar and overseas investors push liquidity to new heights, according to the Transaction Services group of PricewaterhouseCoopers. Bob Filek, a partner in the group, says “We are moving deeper into an accelerated M&A rally, with larger transactions from bigger corporate buyers on the horizon.
Now, accounting firms are fattening their ranks and their coffers. And that’s good news for candidates seeking transaction services jobs. Transaction advisory professionals are involved in corporate deals in a number of capacities. Feldman says, “When a company is looking to acquire another company transaction services groups go in and advise a client on potential mergers. These professionals must find synergies between the two companies from an accounting perspective and determine how they can best be integrated. Post-merger, they go in and make sure the integration is executed smoothly and there is transparency for reporting purposes. If there are issues, transaction advisors must recommend how to better run those companies.”
Meanwhile, borrowing costs for companies are climbing, fueling concerns that the end of the cheap money cycle is in sight. A liquidity crisis or rapidly rising interest rates could, in fact, quickly reverse the surge in buyouts. But research by PricewaterhouseCoopers indicates that M&A activity will remain strong into 2008. Meanwhile, history tells us the end stages of accelerated deal cycles coincide with risky cross-border transactions. So, as deals become riskier, buyers must add thoroughness to their processes and conduct rigorous due diligence.
Transaction advisors will be stepping up to address these challenges. Candidates seeking to capitalize on growing transaction services opportunities typically have corporate finance backgrounds. Feldman says a CPA is not essential but that distinction will make job seekers more marketable. He adds that solid technical skills and detailed working knowledge of M&A or transaction services as well as U.S. GAAP and SEC reporting requirements are also key requirements.
