{ "docId": "019dd923-622c-750b-8b9b-15d71754f3a1", "docSlug": "2fca39b214c5", "documentTitle": "N/A", "authorId": "99_Other", "authorName": "10X EBITDA", "documentKindSlug": "other", "documentKindLabel": "Other", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2025-02-01 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 71, "pageCount": 82, "prevPage": 70, "nextPage": 72, "slideType": "other", "function": "other", "density": "overcrowded", "nDataPoints": 4, "notes": "This is a Q&A style educational slide from a technical finance guide.", "elementsJson": [ "paragraph" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9b-15d71754f3a1/71", "deckHref": "/decks/019dd923-622c-750b-8b9b-15d71754f3a1", "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-15d71754f3a1.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-15d71754f3a1#slide-71", "components": [ { "bbox": null, "kind": "callout", "text": "This happened to the storied former bulge bracket investment bank Credit Suisse. On Sunday March 19, 2023, UBS announced that it will acquire Credit Suisse for ~CHF 0.76 per share. Credit Suisse shares closed at CHF 1.86 per share on the Friday before. This represents ~59% offer discount to the market price.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-70f7-7334-b21d-0b2c661b1de1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.78, "x": 0.11, "y": 0.28 }, "kind": "paragraph", "text": "305. After the announcement of an M&A transaction, can the target company's stock price increase to the point where it exceeds the offer price? \"Yes, the target company's stock price can increase to the point where it exceeds the offer price. This isn't common. However, it can happen if the market believes the acquirer will be forced to pay more than what it offered.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0c5d1226-a765-4abc-a8f8-f79efc5ac329", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.78, "x": 0.11, "y": 0.87 }, "kind": "paragraph", "text": "309. What is Precedent Premia Analysis and why would you do it for an M&A transaction?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "12df3ea1-18ba-4de2-9784-75e176d0f7cf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.78, "x": 0.11, "y": 0.69 }, "kind": "paragraph", "text": "308. What about an offer below the current stock price? \"Yes, you can.\" This happened to the storied former bulge bracket investment bank Credit Suisse. On Sunday March 19, 2023, UBS announced that it will acquire Credit Suisse for ~CHF 0.76 per share. Credit Suisse shares closed at CHF 1.86 per share on the Friday before. This represents ~59% offer discount to the market price. This doesn't happen frequently, but it absolutely does happen.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1dae563f-e1b7-4716-92cd-b9339194ea08", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.78, "x": 0.11, "y": 0.61 }, "kind": "paragraph", "text": "307. Can you make an offer to acquire a company at the current stock price? \"Yes, you can.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "70e77412-b56f-4516-8090-a42366fa7aa9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.78, "x": 0.11, "y": 0.17 }, "kind": "paragraph", "text": "304. After the announcement of an M&A transaction, what happens to the acquirer and the target's stock price? \"The acquirer's stock price can move either up or down, depending on the market's perception of the transaction. The target's stock price generally goes up.\"", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b7d7a3d0-772f-4364-a23a-23be463cee8a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.78, "x": 0.11, "y": 0.41 }, "kind": "paragraph", "text": "306. After the announcement of an M&A transaction, can the target company's stock price be below the offer price? \"After the announcement of an M&A transaction, the target company's stock price usually increases to slightly below the offer price. And so not only can the company's stock price trade below the offer price, it's nearly always the case.\" For example, suppose the target's stock price prior to the announcement of the M&A transaction is $20. Then comes the news that the acquirer will purchase the target for $28. The target's stock price may increase to a level such as $27.70 – just slightly below $28.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f642b07c-0e94-4654-b1f7-b66171732827", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.22, "x": 0.64, "y": 0.02 }, "kind": "title", "text": "VI. Mergers & Acquisitions (M&A) A. General Understanding", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "858d0d74-e394-4a3e-8a99-78d9c6134709", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }