Money Stuff: The Podcast All the Biggest Tombstones: M&A, ETF, Mailbag
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Jul 26, 2024 Dive into the world of mergers and acquisitions as Katie and Matt untangle fee structures and the evolving roles of bankers and lawyers. They explore the rise of private assets in ETFs, discussing the challenges of liquidity and regulatory issues. A noteworthy IPO case adds to the intrigue. The duo also shares insights on investment strategies and the dynamic nature of alpha generation, contrasting celebrity-driven approaches with data-focused methods. Listener questions bring a lighthearted wrap-up, making for an engaging and informative discussion.
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M&A Fees: A Risky Business
- Investment bankers traditionally profit from closing M&A deals, leading to unpredictable pay.
- This model incentivizes dealmaking, even when not in the client's best interest.
Investment Bankers Adapt to Deal Failures
- Reuters reported that investment bankers face challenges as fewer M&A deals close.
- They are adapting by charging more upfront fees and demanding a share of breakup fees.
Wiz Rejects Google's Offer
- Cybersecurity startup Wiz rejected a $23 billion takeover bid from Google, opting for an IPO.
- Regulatory concerns and the potential for higher valuation as a public company influenced their decision.
