The Daily Technical #101: What is restricted cash and could you give an example?

Good morning. Welcome to the 101st edition of The Daily Technical. You’re here for one reason so let’s dive in.

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OVERVIEW OF YESTERDAY’S QUESTION
Describe a recent M&A deal.

To understand the rationale behind an M&A deal and the market’s perception of the transaction, review press releases and articles with commentary on the deal from reliable sources.

Also, examine the current competitive dynamics within industries relevant to the deal and ongoing trends that could further explain why the transaction was completed.

The specific details regarding the deal which should be included in your response include:

• Name of Acquirer and Target Company (along with a business profiles of each)

• Merger or Acquisition Strategic Rationale (can be found in the Form S-4 or publicly announced)

• Approximate Transaction Size, Premium Offered, and Form of Consideration (if publicly disclosed)

• Acquirer and Target's Share Price Movement Post-Announcement

• Personal Perspective on the Transaction – "In your opinion, was this a good deal?"

Common Mistakes

1. Forgetting to include detailed business profiles of both the acquirer and the target company. This detail is crucial in demonstrating your understanding of the deal.

2. Ignore analyzing the share price movement post-announcement. This insight shows how the market perceived the deal's success or failure.

3. Forgetting to share your own perspective on the transaction. Offering a well-reasoned personal opinion shows critical thinking and engagement with the deal. Conclude with whether you believe the transaction was strategically sound and why.

TL;DR

• Identify acquirer and target with business profiles.

• Explain strategic rationale using Form S-4 or public statements.

• Include transaction size, premium, consideration type.

• Analyze share price movements post-announcement.

• Offer personal opinion on deal's success.

DEAL TALK
H.I.G. Capital Acquires Kantar Media, Pays 37% Premium

Learn more about the deal here.

TODAY’S QUESTION
What is restricted cash and could you give an example?

Type your answer here. Within 60 seconds you’ll have custom feedback in your inbox.

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