Many of the companies, apps, and brands we use every day have grown through M&A transactions. Instagram and Meta, Disney and Pixar, and the negotiations between Netflix and Warner Bros. Discovery are just a few examples of how these decisions can transform entire industries.
But what does M&A actually mean? And why do legal professionals play such an important role in these transactions? If you’re interested in law and business, understanding how mergers and acquisitions work can help you discover a field with significant global impact.
As companies continue to pursue these deals, there is strong demand for professionals who combine legal, economic, and international governance expertise, such as graduates of Esade’s Double Degree in Law + Global Governance, Economics and Legal Order. This program opens the door to a field with excellent career opportunities.
What is M&A and how do mergers and acquisitions work
M&A stands for mergers and acquisitions.
The term refers to transactions in which one company merges with another or acquires part or all of another company in order to grow, enter new markets, or become more competitive.
For example, Meta acquired Instagram to strengthen its position in social media and reach new audiences. Disney did something similar with Pixar to support its content and creative strategy.
But these transactions involve much more than a simple merger or acquisition. Behind every deal lies strategy, negotiation, and legal analysis.
Types of M&A transactions: mergers and acquisitions
Not all corporate transactions are the same. There are different types of mergers and acquisitions depending on the strategic goals of the companies involved.
1. Mergers: horizontal, vertical, and conglomerate
A merger takes place when two companies combine and operate as a single business. The most common types are:
- Horizontal mergers: companies in the same industry combine to increase their size or market share.
- Vertical mergers: companies operating at different stages of a product’s production process come together to gain greater control over that process and move toward greater vertical integration, giving them more control over how the product is produced and distributed.
- Conglomerate mergers: companies from different industries combine to diversify their business.
2. Acquisitions: friendly, hostile, and leveraged buyouts (LBOs)
In an acquisition, one company buys another. Acquisitions can take different forms. The most common are:
- Friendly acquisitions: both parties negotiate and agree to the deal.
- Hostile acquisitions: the acquiring company attempts to take control of the target company without the support of its management.
Microsoft’s acquisition of LinkedIn in 2016 is an example of a friendly acquisition aimed at strengthening its professional and technology ecosystem.
By contrast, BBVA’s tender offer for Banco Sabadell in 2024 is an example of a hostile takeover attempt, as the Catalan bank’s management rejected the proposal.
Most of these transactions are financed through the acquiring company’s own funds, share exchanges, or bank financing. Some can also be carried out through structures such as leveraged buyouts (LBOs), in which a large part of the acquisition is financed with debt provided by banks, investment funds, or other financial institutions.
One example of a deal financed primarily through debt was Elon Musk’s acquisition of Twitter (now X) in 2022.
3. Other related corporate transactions: joint ventures and spin-offs
The M&A field also includes structures such as:
- Joint ventures: arrangements in which two companies work together on a shared project or to enter a new market.
- Spin-offs: transactions in which a company separates part of its business to create a new independent company.
Who works on an M&A transaction?
M&A transactions require multidisciplinary teams capable of making strategic decisions in complex environments. Common roles in this field include:
- Corporate lawyers.
- Competition law specialists.
- Compliance professionals.
- Strategy consultants.
- Financial analysts.
- Tax advisors.
Each role brings a different perspective. While analysts assess the financial viability of a transaction, lawyers review contracts, regulatory risks, and issues related to competition law, data protection, and international regulations, including the EU Merger Regulation.
Why law and global governance are essential in today’s M&A deals
Behind every M&A transaction are contracts, negotiations, regulations, risk assessments, and strategic decisions that require legal oversight. In addition, many mergers directly affect teams and organizational structures, meaning areas such as employment law may also play a role during the process.
When a transaction involves companies from different countries, the complexity increases even further. Large international deals must comply with cross-border regulations.
This is why lawyers who combine expertise in law, economics, and global governance bring a particularly valuable skill set to the field.
What education do you need to work in M&A?
There is no single path into M&A. Many professionals come from fields such as law, economics, finance, or business administration, although lawyers play a particularly important role in this area.
Lawyers are involved in corporate negotiations, international contracts, regulatory reviews, and matters related to competition law and corporate governance.
As a result, companies look for people who can:
- Assess legal risks.
- Interpret international regulations.
- Negotiate business agreements.
- Understand global markets.
- Make strategic decisions.
In addition, many corporate transactions require knowledge of areas such as corporate law, taxation, and international contracts.
Career opportunities in M&A: how do you get into mergers and acquisitions?
M&A is a good example of how a law degree can lead to careers far beyond the courtroom or traditional legal practice. Career paths in this field include:
- M&A lawyer at a law firm, particularly within corporate law teams.
- In-house counsel at companies involved in acquisitions, divestments, or inorganic growth, meaning growth achieved through mergers or acquisitions.
- Hybrid legal-business roles that combine legal expertise with financial and strategic insight.
Learn about our Double Degree in Law + Global Governance, Economics and Legal Order
As mentioned earlier, today’s corporate transactions require professionals who can combine legal expertise, strategic thinking, and an understanding of the global landscape.
In response to this demand, Esade’s Double Degree in Law + Global Governance, Economics and Legal Order prepares you to understand how companies, institutions, and regulation interact in an international environment.
It is particularly well suited to students who want to become lawyers capable of leading negotiations and decision-making processes related to cross-border mergers and acquisitions, something that is increasingly common in today’s globalized economy.
Frequently asked questions about M&A
What degree should you study to work in mergers and acquisitions?
There is no single degree that leads to a career in M&A. Many professionals come from fields such as law, economics, finance, or business administration. However, there is growing demand for people who combine legal, business, and international expertise. In this regard, Esade’s Double Degree in Law + Global Governance, Economics and Legal Order allows you to begin your career in this field with a highly sought-after skill set.
Do you need a legal background to work in M&A?
Not necessarily, but law plays a key role in most corporate transactions. Contracts, regulation, competition law, taxation, and international negotiations are all fundamental aspects of mergers and acquisitions.
When does the EU Merger Regulation apply?
The EU Merger Regulation applies when a merger or acquisition could have a significant impact on competition within the European market. The European Commission assesses whether the transaction could create a dominant position or restrict competition.
How long does an M&A transaction take?
It depends on the complexity of the transaction. Some deals can be completed in a matter of months, while others can take more than a year, especially when multiple companies or international regulators are involved.
Interested in the world of law and business? Build a career in international M&A. Request an information session and we’ll answer your questions.
