In leading M&A transactions, does gender matter?

• Author: Ragon, Pamela
• Position: Deals & Dealmakers - Mergers and acquisitions

Though merger and acquisitions deals are picking up steam, fewer women are in leadership roles than men. Yet, studies show women posess traits that would seemingly make them successful dealmakers.

Mergers and acquisitions activity is on the rise again, though it hasn't reached levels seen in the heady days of 2007-08. And, many corporate balance sheets are flush with cash. In fact, during the recent debt ceiling crisis, commentators pointed out that Apple Inc. had more cash on its books than the U.S. Treasury.

With the economy still barely making it into second gear, corporations are struggling to find solid organic growth opportunities. As a result, acquisitions are increasingly viewed as an attractive avenue for growth.

Further fueling demand are private equity groups, also sitting on large pools of cash. These firms are actively searching for companies to buy, or risk having to return funds to investors. Many private equity shops racked up losses on investments that were victims of the recession, so the incentive to make new investments and hopefully offset losses is strong.

When companies look to either make acquisitions or put themselves on the block for sale, there are a number of players involved in the process. In a large public company, everyone from the board of directors, CEO, chief financial officer, general counsel and others play an active role. There may also be a head of corporate development who directs the process. Outside the company itself, the wider cast of characters includes investment bankers, commercial bankers, CPA firms and M&A attorneys.

In small- and mid-sized private companies, the owner usually drives the process, flanked by his or her CFO or controller. Often, bankers, accountants and attorneys play a role as well.

But, despite gains made by women in many fields, M&A is still very much a man's game. A 2010 survey conducted by Calalyst, a nonprofit devoted to expanding opportunities for women in business, found that only 2.6 percent of the CEOs of the Fortune 500 are women. Further, the 2010 Catalyst Census of Women Executive Officers revealed that women:

* Occupy 15.7 percent of board seats in the Fortune 500;

* Account for 14.4 percent of executive officers in the Fortune 500;

* Hold the CFO role in 9.8 percent of the Fortune 500;

* Hold 31.7 percent of the positions with investment banking and securities-dealing firms and just 15.3 percent of the executive/senior-level positions;

* Are 69 percent of the employees of commercial banks and just 28.9 percent of the executive/senior-level managers; and,

* Are 53.4 percent of employees of accounting and tax firms and 31 percent of the executives.

According to American Lawyer magazine, women represent only 15 percent of equity partners in the AmLaw 200...