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

echojason@gmail.com'

JASON LEMKIN

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.

View original question on quora

Published on May 4, 2016
Share This