Premiums Paid

Answer whether the premium is normal for a deal like this one.

Seat

IB

Level

Analyst

Runtime

~20 min

Output

Premiums paid page: Excel + slide

What this helps you accomplish

Precedent premiums to the unaffected price, the 30-day volume-weighted average and the 52-week high, with the quartiles and the offer measured on all three bases. Premiums only mean something against a stated reference, and a bidder will quote the basis that flatters it. This page is where the other two get shown.

What you get

Not a description of an output. The file itself, in the conventions a banker, a PE associate or a hedge fund analyst already reads without being told.

{TICKER}_premiums-paid.xlsx

Excel workbook

  • 1

    Precedent transactions ($ per share unless stated)

    Date, acquirer and target with the premium to unaffected, to the 30-day VWAP and to the 52-week high, and maximum, quartile, mean, median and minimum rows

  • 2

    Implied offer price at precedent premia to unaffected ($ per share)

    The precedent quartiles applied to the target’s own unaffected price, with the offer against each

  • 3

    PowerPoint

    One slide: a native chart of the precedent premiums with the offer marked on each basis

Where the numbers come from

From the filings: the header only, which is prices and shares. Every filed figure resolves to its form, period, page, the printed value and a link into the filing on EDGAR. Not from filings: every precedent premium, which arrives as an illustrative placeholder the build warns about. Replace the rows from the deal proxies. Assumptions are listed on the slide’s source line under "Not from filings", so an assumed input is never read as a filed one.

Run it yourself

python3 skills/deal-slides/build.py premiums-paid --ticker BSX --offer 60

Delegate · Verify · Decide

The core L3VLUP principle: AI output is never automatically correct. Know what to hand off, what to check, and what only you can own.

Delegate

AI is good enough to do this.

  • Filling the header from the filings with a citation on each figure
  • Computing every precedent premium and the quartile statistics
  • Applying the precedent quartiles to the target’s unaffected price
  • Building the branded slide with the premium chart

Verify

AI accelerates you here, but a professional checks the work.

  • Each precedent premium against that deal’s own proxy, on the basis the header claims
  • That each precedent’s 52-week high is at or above its unaffected price
  • That a VWAP above the offer is a transcription error rather than a finding
  • That deals with a leaked approach are flagged, since their premium to unaffected is understated

Decide

Judgment the human owns. This is the skill.

  • The unaffected date, and whether the market had already moved
  • The screen: sector, size, period, and whether minority buy-ins belong in it
  • Which basis the page leads with, knowing each side will prefer a different one
  • Whether the offer premium is defensible where it lands against the set

Inputs required

  • Company name or ticker
  • The offer per share and the unaffected price with its date
  • The precedent list: date, parties and premium on each basis
  • Your own numbers where you would rather not use the default

The workflow

  1. 1

    Resolve the company

    A ticker or a name fills the header the implied offer prices are computed from.

  2. 2

    Fix the unaffected date

    Everything on the page hangs off it. If the approach leaked, the unaffected date is before the leak, and the page says which date it is using.

  3. 3

    Replace the precedents

    Each row comes from that deal’s proxy: the unaffected price, the VWAP and the 52-week high as at announcement.

  4. 4

    Build and read across the bases

    The offer on all three references at once. A premium that is generous to the last close and thin to the 52-week high is a different story from one that is generous to both.

  5. 5

    Check the implied prices

    The quartile premiums applied to the target give the range a board will anchor on. Make sure it is a range you can defend.

Run this skill

Subject
Perspective
Sources
Output
Run

Any listed company, anywhere. Ticker or name.

Quality checklist

The output isn’t done until every box ticks.

  • verify reports zero errors and every derived cell is a formula on blue inputs
  • Units are on every table header and chart title, and the subtitle names the currency and period
  • The unaffected price carries its date, and any VWAP says how many days it covers
  • The offer premium to unaffected lands near the precedent range, or a mis-keyed price or a leaked deal explains why it does not
  • Each precedent’s 52-week high is at or above its unaffected price and its VWAP is in the same neighbourhood

Practise the fundamentals first

Free, no sign-up — in the Labs.

Tools that speed this up

Part of the L3VLUP tool suite.

Next skill: Weighted Average Cost of Capital