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The 4 Most Important Books to Understand M&A


Mergers and Acquisitions (M&A) is a huge part of the corporate finance world, and produce deals that can be worth billions of dollars. M&A can be the biggest thing that a CEO does in his or her career. Whether you are in midst of a M&A process, heading towards the possibility of a M&A deal or have an eye on the future, reading up on the M&A process is only going to help. The following four books not only provide detailed overviews of the process itself, but also outline various strategies to ensure a successful M&A deal. 

1. Mergers & Acquisitions from A to Z: Strategic and Practical Guidance for Buyers and Sellers

By Andrew J. Sherman

As you can imagine by the title, "Mergers & Acquisitions from A to Z" is a practical guide that covers everything you need to know about M&A transactions, from structuring documentation to analyzing projected financial gain. The book isn't just a general introduction either, it's an excellent source of information about M&A, whether considering an M&A deal or already in the midst of an M&A transaction and are looking to just review M&A related topics, whether it be valuation, due diligence, deal structuring or financing. Sherman's book also goes over tax and accounting considerations, legal documentation and the viewpoints of both buyers and sellers.

2. The Art of M&A: A Merger Acquisition Buyout Guide

By Stanley Foster Reed, Alexandra Lajoux and H. Peter Nesvold
Reed's "The Art of M&A" is a go-to guide for many in the M&A business. The book goes over every aspect of M&A and is written in a Q&A format, making it extremely easy to read and to find the information that you need. Some of the topics the book discusses in detail include the basics of M&A, valuation and pricing, the art of financing and refinancing, structuring M/A/B transactions, due diligence inquiry, negotiating the acquisition agreement and more. The book also explores common M&A perils, including how to handle specific financial problems - such as bankruptcies and liquidations.

3. Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions

By Joshua Rosenbaum and Joshua Pearl
Pearl and Rosenbaum's "Investment Banking" is a best-selling book that is not only authoritative, but accessible as well. The book focuses on the primary valuation methodologies that are currently being used on Wall Street, such as precedent transactions, comparable companies, LBO analysis and M&A analysis. The two authors provide readers with a step-by-step guide for how to approach each methodology in order to determine the valuation for both public and private companies going through the M&A process. "Investment Banking" will also get you up to speed on key terms, processes and financial concepts.

4. Valuation: Measuring and Managing the Value of Companies

By Tim Koller, Marc Goedhart and David Wessels

McKinsey & Company's popular book, "Valuation," is currently in its sixth edition. It's regarded as one of the best guides for measuring, managing and maximizing both shareholder value and company value. Not only does this guide provide information on the benefits of value-based management, but also detailed instruction and valuation techniques that are applied to various situations, such as different industries and emerging markets.

"Valuations" provides essential advice on how to drive better decision making by estimating the value of business strategies, how to assess major transactions - including acquisitions and restructurings, and how to minimize risk by designing a capital structure.

Whether you're looking for insight into the M&A process or simply want a refresher course, these four books are some of the most highly regarded on the topic.

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