September 30, 2021

Snapshot of Public Company Deal Terms

Paul Weiss put together this presentation on M&A transactions during the month of August. It covers a lot of ground, including information about domestic and global deal volume, strategic v. sponsor activity, SPAC deals, and inbound & outbound cross-border transactions.  This excerpt reviews public company deal terms for transactions announced last month:

U.S. public merger highlights in August include the following:

– Cash only consideration was up compared to the LTM average, while stock only consideration was low at 15% of the deals in August compared to 27% LTM.

– Unaffected premium percentages saw a significant increase in August to 47% as compared to 31% in July and 37% LTM.

– The percent of deals relying on tender offers increased to 15% in August which is slightly above the 14% LTM average.

– Reverse break fees increased to 7% compared to 6% LTM.

– Go-shops were used in 8% of deals compared to 8% LTM.

John Jenkins