Anti-Boycott Regulations

  

Anti-Boycott Regulations. Noun, verb, and trendy new curse phrase. The frustrating inability to drive all ex-boyfriend’s (hence the BOY) friends away in droves after a nasty breakup because he is a total jerk wad who deserves to take a long bath in rotten pea soup.

Enough being anti-boy...onto anti-boycott...these regulations are meant to keep companies in line with U.S. foreign policy. In short, the U.S. doesn’t want you to join a boycott effort against (and supported by) another country that it isn’t on board with. As noted by Export.gov (2016), these laws also prevent companies from discriminating based on where a person is from, whether a person is male or female, or which religion he or she is affiliated with.

If these laws are violated, you will need to milk the cash cow to pay off the massive fines (and possible imprisonment) that you will receive. But we know you’re a cool cat. You hate discrimination as much as we do.

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Finance: What is a Fairness Opinion?0 Views

00:00

finance a la shmoop what is a fairness opinion? well shouldn't there be

00:07

something about love and war that goes here you know like not all's fair and [Woman throws page at a man]

00:12

maybe not all right two companies the one who boogs and we love gross each owned

00:17

40% of a small operating business that makes nostril trimmers shaped like the

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16th century French apothecary the division yeah it's called [Nose trimmer vibrates]

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Nostrildamus..........

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A dozen other shareholders own the remaining 20% of the company privately

00:37

the one who boogs wants to buy out the 40% of Nostrildomus that we love gross

00:43

owns and the 20% owned by everyone else well they've co-owned this company for [Longsnout and sneezy walking together]

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decades since great-grandpappy longsnout partnered with another great grandpappy

00:54

sneezy yeah no relation to the Disney family there

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the division will do 100 million dollars in revenue this year and generate 15

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million in cash profits alright so how does it get valued because there's got

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to be a buyout here of the remaining percentage and it's not valued

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separately at the moment why is it important for that value to be well fair?

01:15

while lots of potential for corruption here and unsquare dealings may be gross

01:20

would sell out cheap in return for bugs to back out of the Russian territories [Men with briefcases for heads appear]

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where it does big business sort of a tit for tat business deal but then the 20%

01:30

minority owners of the division would be screwed because they didn't get full and [Minority owners protesting]

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fair price for the division that was sold and well they don't benefit in the

01:38

way that gross would benefit by then being able to run the tables or nostrils

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of Russia you know and the apostrophe stans that it controls right so

01:47

everyone's got to be treated fairly here so that's not easy and especially in

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those stans you know like where Borat comes from so in order for everyone to [Borat wearing a mankini on a beach]

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be treated fairly a wizened investment banker is usually called in to write a

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legal fairness opinion and that opinion will likely be inspected by judges and

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other bankers and lawyers should anything go awry so that banker has to

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be very thorough and careful in the way that they calculate [Person punching numbers into calculator]

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the values of each division and their rationale such that everyone gets paid

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fairly and squarely all right well that fairness opinion is used to frame the

02:24

purchase price in the terms of whatever deal ends up going down or up a big part

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of the bankers value-add is creative solutions to bridge valuation gaps where

02:35

one company thinks it's worth more than the other or at least more than what

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it's getting in the deal and while bankers fairness opinions focus mostly

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on just the cash value of the company well like you can imagine that owning or

02:49

controlling a hundred percent of the company would come with all kind of

02:52

benefits if nothing else just not having to report to tons and tons of

02:55

shareholders so what's that right to not report worth and everyone can argue [Man and woman arguing on the sidewalk]

03:00

about that in a banker who's done lots of these transactions can point to other

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transactions that came with a 12% premium for the right to not have to

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report to tons of tons of shareholders right so that's just one example

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bankers often whisper through one side or the other deal dials that can be [Woman banker whispering to male banker]

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turned where companies then feel more fairly treated and then happier to sign

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on the dotted line because when they do well then the banker gets paid well

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those whispers are things like extended term payments like they're buying for

03:29

cash could they pay over ten years and what if the the acquirer decided to pay

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with equity like their own stock instead of all cash and then there's like 50

03:38

other little things like that the companies care about that bankers can

03:41

help them you know turn the dials and if they didn't care about any of those [Person turns dial]

03:44

things well then they'd be more likely to you know take a nosedive

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