Wall Street Prep

Breakup Fees and Reverse Termination Fees in M&A

A breakup fee refers to a payment a seller owes a buyer should a deal fall through due to reasons explicitly specified in the merger agreement. For example, when Microsoft acquired LinkedIn in June ... Read More

Material Adverse Change: The ABCs of MACs

A material adverse change (MAC) is one of several legal mechanisms used to reduce risk and uncertainty for buyers and sellers during the period between the date of the merger agreement and the date the deal closes. MACs ... Read More

Tender Offer vs. Merger

A traditional merger is the most common type of public acquisition structure. A merger describes an acquisition in which two companies jointly negotiate a merger agreement and legally merge. The target board of directors initially ... Read More

Deal Documents: Where to Find Information About M&A Transactions

When analyzing M&A transactions, finding the relevant documents is often the hardest part of the job. In an acquisition of a public target, the type of publicly available documents depends on whether the deal ... Read More

Asset Sale vs Stock Sale

When one company acquires another company, what does the seller actually give the buyer? The answer depends on whether the deal is structured legally as a stock sale or as an asset sale. Broadly ... Read More

Premiums Paid Analysis in M&A

A "purchase premium" in the context of mergers and acquisitions refers to the excess that an acquirer pays over the market trading value of the shares being acquired. "Premiums Paid Analysis" is the name ... Read More

How Buyers Pay in M&A: Cash vs Stock Acquisitions

In acquisitions, buyers usually pay the seller with cold, hard cash. However, the buyer can also offer the seller acquirer stock as a form of consideration. According to Thomson Reuters, 33.3% of deals in the ... Read More

Sell Side vs. Buy Side

You'll often hear finance professionals describe their role as being either on the "sell side" or on the "buy side." As is the case with a lot of finance jargon, what this exactly means ... Read More

Largest Institutional Investors

Institutional investors represent a part of the financial markets known as the "buy side." (Learn more: Sell Side vs. Buy Side). Below is a list of the largest institutional investors in 2017. Click here ... Read More

Bloomberg vs. Capital IQ vs. FactSet vs. Thomson Reuters Eikon

UPDATE: Thomson Reuters' Financial & Risk division became Refinitiv on October 1, 2018. As a result, Eikon is a Refinitiv product. Financial data providers are a key part of the the financial professional's workflow. For the investment ... Read More

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