Series 79: Function Three

Function Three

Mergers and Acquisitions, Tender Offers, and Financial Restructuring Transactions

The third topic the Series 79 exam covers is mergers and acquisitions (M&A) and restructuring. Along with underwriting, M&A is one of the pillars of investment banking work. In all, 18 of the exam’s 75 questions, or just under 24% of the exam, will come from this subject area. Investment bankers who work in M&A advise clients on identifying, negotiating, structuring, and finalizing potential deals.

Let’s review some basic M&A terminology. When an investment bank advises a company that intends to put itself (or one or more of its subsidiaries or assets) up for sale, the company is referred to as the seller and the investment bank is referred to as the sell-side adviser. The seller, sell-side adviser, and others advising the seller (for example, an outside accounting or law firm) are known collectively as