Training for mergers and acquisitions companies can encompass a wide variety of areas, from financial, organizational and people skill sets to specific designations such as the Certified Public Accountant (CPA), Certified Financial Analyst (CFA) and Certified Merger & Acquisition Advisor (CM&AA) certifications. The CM&AA designation is a relatively new certificate that can be obtained from associations that serve business mergers and acquisitions professionals to set industry standards.

Get every kind of training for business acquisitions that you can. Ask your employer to pay for merger and acquisition courses and association fees so that you can take advantage of the many training and advancement opportunities they offer. Look for training for mergers and acquisitions advisors to suit your level of professional development.

1. Look online for entry-level merger & acquisition training.

2. Get advanced mergers & acquisitions certifications.

3. Join corporate acquisitions trade groups for training opportunities.

Action Steps
The best contacts and resources to help you get it done

Obtain entry-level training to start your M&A career

There are entry-level training opportunities within the mergers and acquisition industry. You need to start out with at least one accredited certification in addition to any general degree in order to step into an M&A deal-making position.

I recommend: Check out the many training options available to M&A professionals offered by PRITCHETT. The M&A trainee can learn about M&A accretion and dilution modeling through Wall Street Prep.

Find additional merger and acquisition training to get ahead

The M&A arena is so diverse that you also can get ahead with specific training in accounting, real estate law and investment brokering to supplement your merger and acquisition training. Add CPA, CM&MA and other financial designations to your resume to advance your career.

I recommend: Learn about the various training for mergers and acquisitions and get the training you need for the CM&MA credentials through the Alliance of Merger and Acquisition Advisors. Bring in the trainers from Hewitt Associates to train your in-house M&A team so they will have the mergers and acquisitions advisors designations they need and the continuing education to keep your firm on top.

Participate in business mergers and acquisitions groups that provide members with training

Most trade associations offer continuing education and professional development courses for their members. Some groups can guide you to special Security Exchange Commission (SEC) licensing courses as well as other industry certification courses. They also offer members SEC and regulatory development meetings and seminars.

I recommend: Check out the training seminars and other resources available through the American Management Association. The International Business Brokers Association offers you chances to network with other industry experts while you gain valuable training for your advancement.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure that your business cards reflect all the various financial and merger & acquisition designations that you've received to increase your credibility with clients and employers.

The usual roadblock for any successful small business is scale: How do I grow once the model is working?

Of course, some small businesses scale naturally through franchising or by adding sales territories. But many simply reach a natural ceiling. It would be hard — and probably uncompetitive — to start a nationwide roofing or plumbing company, for instance.

That doesn't mean there's no room to grow your small busines empire. A cash-churning small business is a great excuse to size up and buy other small companies, in whatever field, if you can find the bargains.

Action Steps
The best contacts and resources to help you get it done

Consider pricing a business through a third-party

The Web is jammed full of database-type sites that list businesses and business opportunities for sale. They tend to make their money by charging a fee for brokering the deal (to the seller) and add-ons, like financing for the buyer. Do remember, though, that these are initial asking prices, not sales.

I recommend: Among the biggest of these are VR Business Sales, BizBuySell.com, BizQuest.com, BusinessforSale.com, BusinessMart.com and Sunbelt Network.

Figure out how much you should pay

Valuing a business is a black art, to say the least. You'd need to be part accountant and at least part cowboy to get it right, since the task requires both a precise understanding of the numbers but also a willingness to stare the current owner in the eye figure out his or her real motivation in selling. Is the business falling apart? Or it is just time for the current owner to move on?

I recommend: There are a number of professional valuation services, including Nationwide Valuations and FMV Opinions and straightforward appraisers, including American Value Metrics. A bit cheaper is software designed to run numbers based on industry tables, like ValueSource and ValueAdder. BizComps compiles actual sales by sector and geography over 10 years.

Get the money in line before you negotiate

The government will lend you the cash to buy an existing business. So will many banks if you have a decent track record in business.

I recommend: Check the Small Business Administration first. BizBuyFinancing, a Web site, purports to guide you through the SBA process. Banks that actively seek small business loans include Regions, Wachovia, Bank of America, Wells Fargo, Citibank and Washington Mutual.

Feeling overwhelmed? Start off slow with some reading

Unless you have years under your belt running your own show, valuing and negotiating a business purchase can be hard to do overnight.

I recommend: There are plenty of books, Web sites and courses to consider, of varying seriousness. Consultant Peter Siegel runs a blog on buying a business. You could download Toby Tatum's e-book guide for small business buying, or Richard Parker's similar product at Diomo. Park is endorsed by Donald Trump, who is in a similar business through his Trump University. Finally, entrepreneur Ken Hendricks has a succint, refreshing take on sizing up the opportunity at Inc. magazine.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The most commonly touted metric for value is cashflow. Watch out! The figure given is usually best year ever or otherwise inflated.
• •  You'll need access to several years of the company's books to understand what you are buying, and even then there are big caveats: Is the industry itself dying out? Is a major competitor opening across town? Why exactly does the current owner want out?
• •  Don't overpay for 'goodwill,' which is the reputation value of the business. It can be relatively simple to calculate the value of a company in terms of net assets. Less clear is the value of its brand. Banks won't loan for this cost, and you should point out that a retiring owner means goodwill walks out the door with him or her.

The mergers and acquisitions industry regularly faces changes that shape the reasons companies decide to reorganize and merge. To compete successfully, you must keep up with current movements of mergers and acquisitions advisors and the news they make.

As a professional in business mergers and acquisitions, you should read publications that cover all sectors of the M&A industry, including your own specific industry concerns. Mergers and acquisitions (M&A) news and trends can be found in industry-specific publications as well as national news reports.

1. Get email alerts and merger and acquisition newsletters that provide important headlines.

2. Subscribe to resources for business acquisitions for more detailed reports.

3. Participate in associations for merger and acquisition firms for additional news sources.

Action Steps
The best contacts and resources to help you get it done

Watch for vital emails from mergers and acquisitions advisors

Merger and acquisition trend pieces by experts in the field can be helpful as you plan your future investment strategies. Find trusted sources that will supply you with instant news feeds and emails that carry important daily market news as well as analytical sources on which you can rely for solid advice.

I recommend: The New York Times DealBook is a respected source of M&A news. Corporate Financing Week keeps readers updated on the news and trends that affect the industry.

Read detailed reports from business mergers and acquisitions analysts

Subscribe to reports that cover the company merger and acquisition industry in greater detail and provide expert market analyses. Often the best information that can help drive your own business decisions comes from investigative reporting and research articles that take a deeper look into industry issues. By keeping up with news reports, you may even find mergers with which you can get involved before they happen.

I recommend: Get the latest M&A news from around the globe from The M&A Journal. Sign up for email alerts, newsletters and RSS feeds for all the latest news you need to remain successful at CFO.com.

Join merger and acquisition groups that provide members with industry-specific news

Joining an association for professionals in the M&A field can provide you not only with the inside track to actual M&A activity but also IT developments that M&A professionals are using to manage their activities. You'll also learn about trade shows, seminars and functions where you can connect with prospective clients and noted industry speakers alike.

I recommend: Join the discussion forums with other M&A professionals or sign up for the newsletter available from the Association of Professional Merger & Acquisition Advisors. The Association for Corporate Growth keeps readers updated with the latest news and information about recent mergers and acquisitions through its Mergers and Acquisition Journal. You can also attend one of its many chapter events.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Add a few secondary sources when looking for M&A information, such as real estate and state and financial news resources, to get a complete picture of the current market for your company.

When mergers and acquisitions occur, there's a number of things that may seem chaotic and out of control. The more one knows, the more comfortable he or she is likely to feel as such upheavals are taking place. As a result, learning the key terms of mergers and acquisitions is a smart idea, as it can allow for more calming and relaxing experiences during potentially stressful times.

Action Steps
The best contacts and resources to help you get it done

Acquisition

Acquisitions occur when one company controls or assumes control over another company. In many instances, acquisitions are affected by agreements, purchases made on the open market or a takeover.

I recommend: A list of Oracle's acquisitions over time can be learned about and explored at Oracle.com.

Friendly mergers

Friendly mergers take place when two companies are willing to negotiate the terms of their merging or acquisition. There is a willingness and general consent in place for the acquiring company and the experience is generally free of hostilities.

I recommend: DarkReading.com explores the friendly merger of Tumbleweed and Axway.

Hostile takeover

Hostile takeovers occur when companies, individuals or entities silently and unilaterally pursue another company in order to take it over. This is done against the wishes and consent of the company's management that is to be acquired. In some cases, a proposal may not be made and a hostile takeover is also known as a raid or a takeover raid.

I recommend: The specifics of a hostile takeover are explained at Slate.com.

Quick ratio

A quick ratio or a quick asset ratio, also known as the acid test ratio, measures a company's liquidity. This measures short-term liquidity and excludes current assets and inventories. The calculation for such is the cash and cash equivalents added to the trade receivables and then divided by the total current liabilities of the company.

I recommend: A full explanation of quick ratios and their methodology can be found at ValueBasedManagement.net.

Lockup provisions

Lockup provisions are put in place when buyers attempt to prevent their targeted company or entity from selling to a competitor prospective buyer. This is done through contractual restrictions, known as lockup provisions.

I recommend: The propensity for businesses to implement lockup provisions is explored at CNET.com.

Accretion and dilution

Accretion and dilution are different types of acquisitions. An accretion, or accretive acquisition, increases a share's earnings. To the contrary, a dilution or dilutive acquisition in one in which the earnings have been decreased.

I recommend: Find an explanation of accretion and dilution at iBankingFAQ.com.