Twicet

This two-day interactive course combines a thorough understanding of the underlying principles of merger arbitrage with a practical analysis of the risks involved. Delegates will learn the pricing of risk and return for individual deals, portfolio management techniques, and how to calculate deal extension risk and its impact on profitability.

The program includes the examination of case studies that will explain significant factors which may affect the market such as the changing political landscape and diversification into emerging markets. Other fundamental aspects such as the legal and political environment will also covered.

Delegates will be equipped with PCs and use Excel to examine “deal break” examples, the principal risk associated with a merger arbitrage strategy.

	TBC
	Duration: Two days (9.00am to 5.00pm)
	Location: The Tower Hotel – London E1, UK
	Trainer: Mal Spink
	Course fee: £1890 + VAT – Register online

Course Outline

What is merger arbitrage?

+ A brief introduction

The merger arbitrage industry

+ An overview of the market participants
+ The role of the markets in mergers and acquisitions

Merger Arbitrage as a Part of the Investment Universe

+ Changes in stock price behaviour during the merger process
+ Return and correlation characteristics of merger arbitrage (academic review)
+ Risk and return of merger arbitrage funds
+ Merger arbitrage in a diversified portfolio

Types of Deal Structures: Mergers and Tender Offers

+ Cash mergers versus cash/stock for stock mergers
+ Tender offers
+ Comparison of transaction types
+ Hostile transactions
+ Leveraged buyouts

Financing

+ Financing options for mergers & acquisitions
+ Uncertain merger consideration
+ Sources of valuation
+ Financing risk

Legal Aspects

+ Legal aspects of merger agreements
+ Merger process (case studies)
+ Contrasting takeover defenses
+ Review of global legal practices

Stakeholder Involvement

+ Federal Government
+ Trump / CFIUS – Case study NXPI
+ State Government
+ SEC
+ Antitrust issues
+ MIFID II
+ Employee actions

Analysis of Risk and Return

+ Pricing the deal spread
+ Expected return of the arbitrage
+ Dividends
+ Using leverage
+ Covered call writing
+ Deal extension risk – Case study
+ The advantages and disadvantage of using short sales in non all cash offers (case study)
+ Bidding wars and hostile bids – competition risk – Rivals bids during stock offers

How Risk Effects the Arbitrage Decision

+ Calculation of deal closing probability
+ Deal breaks – Interactive instruction on factors effecting the calculation of deal failure
+ Estimating losses
+ Market liquidity

Portfolio Management

+ The merger arbitrage decision process
+ Trading tactics
+ Trading versus investing
+ Leverage and options
+ Shorting stocks
+ Fees – Commissions & portfolio turnover, interest charges
+ Managing the cash position
+ Risk management
+ Benchmark ETFs
+ Passive investment – Hedge funds and mutual funds

Current/Future state of M&A market

+ Future Opportunities
+ Emerging markets