At Matthews South, we continue to see a meaningful increase in Enhanced Open Market Repurchase (eOMR) interest and usage from our clients. Open Market Repurchase (OMR) users are progressively considering eOMR because of the large expected discount beat that eOMR provides. Additionally, it is an ... >>>Read More
Impact of Stock Based Compensation on the 1% Buyback Tax
On August 16, the Inflation Reduction Act of 2022 was signed into law, including a tax on corporations equal to 1% of “the fair market value of any stock of the corporation which is repurchased by such corporation during the taxable year.” Details (including the treatment of Accelerated Share ... >>>Read More
Share Buyback 101 for Beginners
As a service for those who may not have prior experience with stock repurchase strategies, we provide background information on some general questions. Why do companies do share buybacks? A share buyback is a method of capital return to shareholders. Companies may choose to repurchase ... >>>Read More
Share Repurchase Strategy: Are Pre-paid Puts Attractive in the Current Market?
CAESARS. Dragons. ZcallS. YEPS. Give derivative marketers a simple product and they will come up with a million names and a lot of dressing up. This blog post explores a simple put option sale (a.k.a. CAESARs, Dragons, ZcallS, and YEPS) and its role in a corporate share buyback plan, especially ... >>>Read More
Matthews South Advises on $200mm “Low Cost” eOMR for Technology Company
Matthews South advised a large-cap technology company on its first Enhanced Open Market Repurchase (“eOMR”). The eOMR is an open market program intended to maximize the discount to VWAP. The program does this by using an algorithm to determine the daily purchases. Matthews ... >>>Read More