ACCELERATED SHARE REPURCHASE
ASRs are complex transactions and they require intimate knowledge of both market inputs (volatility, skew, funding), bank hedging practices, and documentation.
Expertise in ASRs is essential because the banks are conflicted as they sit at opposite sides of the table from their clients during the course of the transaction
Clients often find themselves as price and structure takers, where banks push alternatives that, while increasing discount, also increase risk of adverse outcomes. Additionally, the “black box” nature of the ASR leaves clients clueless as to the actual program performance and value generated by the banks. Our analytical framework helps companies objectively evaluate program structures in a quick and efficient manner and with complete visibility into fair value of the program. This allows our clients to make an informed choice for the best option given their objectives.
We act as an extension of the company deal team to assist in all aspects of the transaction from start to finish:
- Transaction Structuring
- Documentation Review
- ASR Fair Value Determination
- Accounting Analysis
- ASR Bid Process
- Bank Negotiation
- Transaction Monitoring (likelihood of early completion, etc.)
- Final Program Value Determination