Share repurchase is one of the most important responsibilities of a treasury team given the high value-at-risk (acquiring millions or billions of dollars of a volatile asset).
There are a broad range of execution methods to consider with share repurchases. However, the banks that provide structural guidance and execution are motivated to promote more lucrative, “black box” alternatives. In addition, the banks, as counterparties, have no incentive to provide transparency. As a result, there are virtually no tools available to clients to inform the structuring of their transactions and understand if they are getting fair pricing.
We are the pre-eminent advisor for share repurchase programs having advised on over $65 billion of repurchase transactions to date. We unbundle advice and structuring from commodity execution, which allows us to be free of biases. Our goal is to have our clients be the most informed participants in the capital markets.
We have created proprietary software to power our advisory solutions. Our software provides an analytical framework for our clients to evaluate the OMR, 10b5-1, eOMR and ASR alternatives. It also provides complete pricing transparency for ASRs and other structured buybacks. Our clients can make data-driven decisions in structuring their buyback programs, improve VWAP performance, and achieve better pricing for structured programs.
In our share repurchase engagements, we provide our clients with:
- Independent, unbiased advice across different share repurchase alternatives (open market, eOMR, ASR, tender, privately negotiated repurchases, etc.)
- Quantitative analytics including backtesting, scenario planning, and monte carlo simulations
- Accounting, documentation, and disclosure support
- More competitive bid process and oversight
- Real time monitoring of on-going transactions including broker benchmarking