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G.F. Gay Le Breton and Taylor Gilbert along with Scott Whittaker and David Rieveschl with Stone Pigman held a webinar entitled Dealing With Distress: M&A Strategies for Financially Troubled Companies on June 23, 2020. Webinar Recording Presentation Materials

The new tax law has important implications for the structuring and financing of M&A transactions and will affect the pricing of deals.  Sellers, private equity firms, investment bankers, and strategic acquirers will need to adjust common practices in order to maximize benefits and protect interests under the new law. Join your friends from Chaffe & Associates and Stone Pigman for a complimentary webinar that will examine how certain tax law changes, including limitations on interest deductibility and net operating losses, expensing of certain capital expenditures, and the new 20% pass-through deduction, will impact the M&A market.

European style fixed strike, lookback, and asian put option models have been proposed and utilized by business valuation practitioners to estimate discounts for lack of marketability. Another form of put option, a shout put or shout floor option, more closely mimics marketability than do the previously mentioned forms of put option because both marketability and a shout put option give a stockholder the right to lock in a selling price (the prevailing marketable stock price) for the stock at any point in time over the term of the option. By comparison, over the term of the option the European fixed strike put gives the stockholder the right to lock in a selling price equal to the current stock price; the lookback put gives the stockholder the right to lock in a selling price equal to the highest stock price achieved; and the asian put gives the stockholder the right to lock in a selling price equal to the average of all stock prices achieved. Because the shout put option more closely mimics marketability than do the alternative put option models, it would be a valuable addition to every valuation practitioner’s toolbox.