How can you and I profit from corporate mergers and acquisitions? What should you do when one of your stocks gets a buyout offer? Today I’ll be discussing all kinds of corporate deals and what they mean for investors. I’ll also present a couple ETFs that allow you to emulate the merger arbitrage strategy used by many hedge funds.
Section 1: Transaction Types & Examples
Stock-for-stock transactions / mergers
Combinations (cash + stock)
Merger of equals
Section 2: How to React to a Buyout Offer
Terms: – what are you getting for your shares, what are the tax consequences, and what’s the chance the deal gets done?
Likelihood of a bidding war
Recent price history of the stock
Section 3: Profiting from Corporate Deal-Making
Merger arbitrage strategies: active & passive
Buying stocks in anticipation of a deal
Intro music and mid-program music by audionautix.com