A quick review of an Analyst in Transaction Services’ job…

A quick review of an Analyst in Transaction Services’ job…

Louis DETALLE

In this article, Louis DETALLE (ESSEC Business School, Grande Ecole Program – Master in Management, 2020-2023) explains what does an analyst in Transaction Services work on.

What does Transaction Services consist in?

The Transaction Services consultant assists clients and advises them on their financial transactions. He or she works on disposals, mergers and acquisitions, and restructuring. Clients of a Transaction Services department are generally investment funds, investment banks or very large companies that conduct financial transactions and require the expertise of a Transaction Services team.

What does a Transaction Services analyst work on?

There are two types of missions: buy-side and sell-side due diligence. The approach is different depending on whether you are on the buy side or the sell side. We will review what these missions consist in.

A due diligence is conducted by a specialized audit firm, its objective is to evaluate the risks inherent in the target company when the latter is being sold for instance. All the checks are made possible to understand the company’s strategy, to analyze its strengths and weaknesses, and also to have an overview of its accounting, financial, tax, social and environmental situation.

This analysis is therefore based on the analysis of the historical performance, cash flow and assumptions made in the business plans of the target company.

Calculations of metrics and normative ratios (e.g., EBITDA) or an in-depth analysis of the company’s working capital requirements, sector and business model are also carried out.

In short, the mission of Transaction Services is to carry out all the analyses to ensure that the client and the parties involved do not make any mistakes on the valuation of the company.

What are the biggest Transaction Services firms?

Deloitte, Ernst and Young (EY), PricewaterhouseCoopers (PwC) and KPMG are the four audit and consulting firms that make up the Big Four. They are the most influential consultancies in the world, employing nearly 1,200,000 people worldwide.

What are the main jobs possible after a Transaction Services position?

Some former Transaction Services staff move into areas such as investment banking, private equity (PE), controlling or mergers and acquisitions (M&A). Others use their time in Transaction Services to target departments where they can re-use the skills they have acquired.

To go into M&A or PE, Transaction Services will lack modelling, and this should be kept in mind. Thus, consultants are often found in managerial positions, M&A managers or even in the financial department. Eventually, the excellent command of numbers, operations and the ecosystem allow some to become partners.

Related posts on the SimTrade blog

   ▶ Louis DETALLE My experience as a Transaction Services intern at EY

   ▶ Basma ISSADIK My experience as an M&A/TS intern at Deloitte

Resources

Youtube How to nail TS interviews?

KPMG Careers website

EY Careers website

About the author

The article was written in December 2022 by Louis DETALLE (ESSEC Business School, Grande Ecole Program – Master in Management, 2020-2023).

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