Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
investors.squarespace.com
Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
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Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#2It is interesting how most M&A transactions trend to have a 30% premium above the trading price. I have tried to investigate why but could not find a good explanation to why this number is so prevalent.
Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#3Can someone explain why this is happening? Thanks!
Personally having used squarespace I'm not a fan of their product, but that's beside the point!
Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#4how odd, all my google domains just transferred to squarespace today. now thru no consent of my own all my domain and payment information are belong to this private equity shop i dont know anything about that is also likely to strip it for parts. idk how to feel about that
Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#5It is interesting how most M&A transactions trend to have a 30% premium above the trading price. I have tried to investigate why but could not find a good explanation to why this number is so prevalent.
It’s probably just a good rule of thumb.
10%? Go away.
20%? You can certainly negotiate it up to 30%.
30%? There’s considerable value here, and threats to walk away will be felt.
40%? Why, when you can get it to 30%?
Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#6It is interesting how most M&A transactions trend to have a 30% premium above the trading price. I have tried to investigate why but could not find a good explanation to why this number is so prevalent.
You have to pay enough to convince everyone to sell. The trading price is the marginal price of buying one more unit of stock, not a representation of the stock price at which every owner will sell.
Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#7how odd, all my google domains just transferred to squarespace today. now thru no consent of my own all my domain and payment information are belong to this private equity shop i dont know anything about that is also likely to strip it for parts. idk how to feel about that
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Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#8Can someone explain why this is happening? Thanks! Personally having used squarespace I'm not a fan of their product, but that's beside the point!
PE realises you can fire most of the team and stop R&D, jack up prices by 50-100% due to lock in, and have something low risk that returns like four times bonds.
Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#9It is interesting how most M&A transactions trend to have a 30% premium above the trading price. I have tried to investigate why but could not find a good explanation to why this number is so prevalent.
I have seen the same. There's likely a sort of "market price" effect here. If everyone is doing it, you should do it too. Some premium over the stock market price is expected - you are buying out all shareholders, not just the ones who want to sell at the current stock market price - but you would not expect "flat 30-40%" to be the premium.
Re: Squarespace to Go Private in $6.9B All-Cash Transaction with Permira
#10It is interesting how most M&A transactions trend to have a 30% premium above the trading price. I have tried to investigate why but could not find a good explanation to why this number is so prevalent.
High enough to clear the fiduciary duty bar of acceptance, but not so high that the acquirer feels like they're over paying.