Is Pfizer-Allergan the End of Tax Inversion Deals?

The transcript discusses the US government's targeting of the Pfizer-Allergan merger through new regulations, impacting the future of corporate inversions. It highlights the financial consequences for investment banks involved in such deals, particularly smaller firms like Mollis. The discussion also covers the anticipation of regulatory changes by the companies involved and the relatively small breakup fees. Finally, it examines the stock market reactions and strategic implications for Pfizer and Allergan following the failed merger.

What was the primary reason for the US government's intervention in the Pfizer-Allergan deal?

• To promote local mergers

• To reduce pharmaceutical prices

• To specifically target Pfizer-Allergan

• To encourage foreign investments

How do investment banks typically earn from M&A transactions?

• Through fixed annual fees

• By selling stocks of the companies involved

• By charging a percentage of the deal value

• By receiving advisory fees if the deal goes through

What was the estimated advisory fee for the Pfizer-Allergan deal before it collapsed?

• $300 million

• $200 million

• $400 million

• $100 million

What was the cap on the breakup fee for the Pfizer-Allergan deal?

• $400 million

• $500 million

• $100 million

• $200 million

What strategic approach has Allergan primarily used for growth?

• Product diversification

• Cost-cutting measures

• Large acquisitions

• Organic growth