Online instruments for mergers and acquisitions enable businesses to increase their reach and expand their capabilities. While the process of organic growth is often the best approach, M&A is also an effective method to increase revenues and increase market share. M&As can be complicated and may have negative implications if they are not planned and executed properly. Knowing the most common mistakes in M&A transactions is crucial to minimize these risks.

Overpaying is among the most frequently made mistakes in M&A transactions. This happens when the acquirer fails to evaluate the value of the target. To avoid this, it is helpful to use metrics and analyze companies to determine the actual worth of a company. A discounted cash flow analysis is another useful tool for valuing the worth of a business. This valuation technique compares discounted value of the projected free cash flows to the WACC for the industry.

Some of the most common mistakes are based on false notions of synergies. It can take a long time to integrate a workforce, consolidate operational processes, and achieve financial gains from mergers and acquisitions. If you underestimate the time it takes to achieve synergies you could end having to pay more than is necessary since these costs are rolled into the cost of the company.

To become successful M&A specialist, you have to know the basics of accounting and business. This course provides a basic understanding of complex organizational structures through the lense of financial accounting. After you’ve completed this program, you’ll have the knowledge to better evaluate and analyze the design of M&A transactions.