If the terms of an acquisition weren’t disclosed, does that usually mean its a bad deal?



No, but it has to mean the acquisition is deemed “immaterial”.

GM did not announce the apparent $1b purchase price for Cruise. But GM has almost a $50b market cap, and importantly, $78b in cash and net receivables.

$1b is significant, but not a material % of $78b or $50b.

Most acquirers would prefer not to disclose the details of a transaction. If the cash paid is material though, even if the acquisition price isn’t, you often see it called out in the financial or other statements following the acquisition.

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Published on May 4, 2016
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