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by turmacar 1086 days ago
What M&A are you familiar with that they can typically happen in a 6 day timeframe?

I know this is already a stressed straw man in the first place but M&A are aren't a short simple process anyway. Adding some oversight isn't going to change that.

Yes there are tradeoffs to more regulation vs total anarchy/free market. That doesn't mean they're not worth it. "Good" is not the enemy of "perfect" and all.

3 comments

> What M&A are you familiar with that they can typically happen in a 6 day timeframe?

Youtube, for one: https://techcrunch.com/2011/10/30/the-entire-1-65b-acquisiti...

Android as well, if I'm remembering correctly.

They don't necessarily need to complete the acquisition in a week, just get the broad details negotiated and agreed to. Given the GP's bankruptcy example, if they thought it was worth the risk the acquirer can extend a bare minimum amount of credit to keep the company alive while they do the rest of due diligence and finish the acquisition, folding it into a breakup fee.

> What M&A are you familiar with that they can typically happen in a 6 day timeframe?

Virtually every single bank failure that happens results in an M&A that is negotiated over a weekend.

Most recently Credit Suisse collapsed in March. UBS bought it on Monday, March 19, after negotiations began on Friday, March 16. UBS offered a price that was 60% lower than the Friday closing price. The deal was accepted.

Interestingly in this case an "approval" similar to the one we are talking about did happen over that weekend didn't it? I think the approvers brokered the deal.
Regulators were concerned about a collapse causing contagion that results in a financial crisis. Would they care to do that for a little startup with a few dozen employees?
An M&A negotiation can take a matter of hours, in theory. Only for public/very big companies does it get weird.