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| Our client was the CEO of a private company that was acquired by a public company for stock. Our client knew that she, along with approximately one hundred of her key employees, would soon have substantial exposure to a single equity, and she wanted to determine the best way to manage her concentrated stock position. |
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| Expert Advisors Our Private Wealth Advisors quickly assembled a multidisciplinary team, including concentrated stock strategists and members of the equity derivatives team from the Global Markets and Investment Banking Group, as well as our client's tax strategists and legal advisors. |
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| Exclusive Access We were in an excellent position to advise our client because of our in-depth knowledge of the stock. Merrill Lynch had lead-managed the acquiring company's initial public offering and had the largest market share of any trader in the stock. |
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| Custom Services Working with our client's attorney and corporate counsel, the Private Wealth Advisor team analyzed viable alternatives given the legal and regulatory restrictions on the sale, gifting and hedging of the stock. The team recommended a series of transactions to provide both short- and long-term liquidity, which involved hedging strategies and gifting stock to her grandchildren and her alma mater in a tax-efficient way. The Private Wealth Advisory team also engaged our Special Equity Transaction Group to assist the one hundred key employee shareholders in coordinating and executing open-market sales of their positions. |
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| Despite a number of competitive proposals, our client selected the Private Banking and Investment Group for the quality of our advice, our ability to quickly assemble a team of experts and our innovative solutions. She also appreciated that we were able to address the needs of the more than one hundred people who had helped build her company. |
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| To learn more about our Concentrated Stock Management capabilities, contact a specialist at pbig_concentratedstockmanagement@ml.com. |
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| This case study is intended to illustrate products and services available at Merrill Lynch. It may not represent the experience of every client, nor does it indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor. |
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