Cover -- Title Page -- Copyright -- Contents -- About the Author -- Chapter 1: Introduction -- Chapter 2: What Is Risk Arbitrage? -- Types of Transactions -- Mergers -- Tender Offers -- Exchange Offers -- Spinoffs -- Recapitalizations -- Activist Situations -- Speculative Situations -- Chapter 3: The Risk Arbitrage Industry -- Chapter 4: Estimating the Return on a Risk Arbitrage Position -- Simple Deals -- Stock-for-Stock Deals -- Stock-for-Stock Deals Using a Fixed-Exchange Ratio -- Using Short Sales to Lock-in a Deal Spread -- Complex Stock Merger Transactions -- Collars on Stock-for-Stock Transactions -- Example 1 -- Example 2 -- Actual Example of a Collar Deal -- Prorated Transactions -- Leverage -- Example -- Leveraged Returns on Stock-for-Stock Transactions -- Example -- Spread Behavior over Time -- Timing of Risk Arbitrage Transactions -- Estimating Timing in Merger Transactions -- Estimating Timing in Tender Offer Transactions -- Chapter 5: Estimating the Risk of Arbitrage Transactions -- Assess the Price History of the Target Company -- Example -- Estimating the Total Risk of a Transaction -- Example -- Using Other Methodologies to Assess the Risk of Arbitrage Transactions -- Using the Market-Adjusted Return Method to Assess Risk -- Estimating Changes in Market Values Using a Sample of Comparable Companies -- Calculating PRGO's Implied Price Using P/E Method -- Calculating PRGO's Implied Price Using EV/Sales Method -- Calculating PRGO's Implied Price Using EV/EBITDA Method -- Conclusion -- Chapter 6: Estimating the Probability of a Transaction's Occurrence -- Gathering Information -- Conducting Initial Research -- Gathering Financial Information on the Proposed Transaction -- Gathering Legal Information on the Proposed Transaction -- Example -- Vertical Mergers -- Committee on Foreign Investment in the United States (CFIUS)
