How Investment Banks Execute M&A Deals | Step by Step

<p>How does a billion-dollar M&amp;A deal actually happen? From winning the mandate to negotiating the final sale, what really goes on behind the scenes at investment banks like Goldman Sachs, Morgan Stanley and J.P. Morgan?</p><p><br></p><p>In this episode, Anthony Cheung and Stephen Barnett break down the entire mergers and acquisitions (M&amp;A) process, drawing on Stephen&#39;s experience in investment banking to explain how deals are pitched, structured, negotiated and ultimately completed.</p><p><br></p><p>We explore how investment banks compete for lucrative advisory mandates, the difference between buy-side and sell-side transactions, and how companies are valued and marketed to potential buyers. Along the way, we unpack the jargon of M&amp;A, from beauty parades and confidential information memorandums (CIMs) to due diligence, letters of intent and sale and purchase agreements.</p><p><br></p><p>Using Schneider Electric&#39;s $22.6 billion acquisition of PTC as a real-world example, we reveal the roles of bankers, lawyers and private equity firms throughout the dealmaking process, offering a practical guide for anyone looking to break into investment banking or better understand how major corporate transactions work.</p><p><br></p><p>00:00 Introduction to M&amp;A Deals</p><p>06:26 How Banks Win M&amp;A Mandates</p><p>12:59 Investment Banking Bake-Offs</p><p>15:29 Why Banks Share M&amp;A Deals</p><p>20:23 How M&amp;A Advisory Fees Work</p><p>23:24 Conflicts of Interest &amp; Compliance</p><p>28:31 Preparing a Company for Sale</p><p>33:20 Teasers &amp; Confidentiality Agreements</p><p>36:30 The Role Of Lawyers</p><p>38:25 Inside the M&amp;A Data Room</p><p>40:35 Bidding Wars &amp; Due Diligence</p><p>45:11 Choosing the Winning Bid</p><p>46:04 Final Negotiations &amp; Closing</p><p>49:06 Deal Toys &amp; Banking Traditions</p><p><br></p><p>Please take a moment to complete our <a href="https://docs.google.com/forms/d/e/1FAIpQLScKaj3eG3qfYvaKWCpNeE7QonKM8_r-WYqcQYN_cG7Rh6Gw_g/viewform" target="_blank" rel="noopener noreferer">Podcast survey</a> and help shape the future of the show!</p><p><br></p><p><strong>M&amp;A Jargon Explained</strong></p><p><br></p><p>M&amp;A (Mergers &amp; Acquisitions): The process of companies buying, selling or combining businesses.</p><p><br></p><p>Buy-Side Mandate: When an investment bank advises a company looking to make an acquisition.</p><p><br></p><p>Sell-Side Mandate: When an investment bank advises a company looking to