Could there be alternative bidders or higher offers emerging as a result of this scrutiny?

Answer

The KSF‑led probe into the $20‑per‑share cash offer raises a red flag that the price may be “sub‑fair” for MeridianLink’s (MLNK) long‑term value. In M&A transactions, any question about valuation or process often triggers a “re‑open‑the‑bid” window, prompting other private‑equity groups, strategic acquirers, or even consortiums to test whether they can secure a better upside. Given MeridianLink’s steady recurring‑revenue SaaS model, attractive margins and a balance sheet with modest leverage, the company is a “sweet‑spot” for firms looking to add a high‑margin, low‑capex software platform to a larger portfolio. The public‑eye scrutiny therefore creates a credible catalyst for alternative suitors to surface, especially if the target’s board is forced to consider a “fiduciary duty” to seek the highest reasonable price.

From a market‑technical perspective, MLNK has been trading in a tight range around the $20‑offer level, with the 20‑day moving average converging near the current price and the Relative Strength Index (RSI) hovering around 45‑50 – a neutral stance that could quickly tilt bullish if rumors of a competing bid emerge. A modest breakout above $21, on volume, would likely reflect the market pricing in a higher bid premium; conversely, a breach below $19 could signal that the current offer is being deemed insufficient and that the stock may be vulnerable to a “deal‑risk” sell‑off.

Trading implication:

- Short‑term: Stay flat or hold a small long position with a tight stop just below $19.5.

- If credible chatter of an alternative bidder appears: add to the long side, targeting a $22‑$23 upside (typical 10‑15% premium in contested deals).

- If no alternative emerges and the investigation drags on: consider a short‑position or a protective put, as the deal could be delayed or renegotiated at a lower price, pressuring the stock back toward $18‑$19.

In short, the scrutiny markedly increases the probability of a higher‑valued counter‑offer; traders should monitor for any new bidder signals and position accordingly.