Editor's note: An earlier version of this article suggested that Prestige Brand Holdings agreed to the buyout offer. The Fool regrets the error.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of consumer goods and over-the-counter medicine company Prestige Brand Holdings (NYSE: PBH) were soaring today, gaining as much as 24% in intraday trading.

So what: Sometimes the math of a big pop like this is very simple. In Prestige's case, Mexico's Genomma Lab Internacional offered to buy the company for $16.60 in cash. The price would give Prestige shareholders a 23% premium over the closing price on Friday.

Now what: Prestige is the owner of well-known brands including Chloraseptic, Comet, Tagamet, and New-Skin, so as a company it's definitely a worthwhile asset to own. But with Genomma's offer valuing the company at more than 19 times trailing earnings, investors may not want to bet on a bidding war erupting. At the time of writing, the stock was trading less than 1% away from the proposed takeout price, so Prestige investors may want to start thinking about where they'd like to redeploy their capital.

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