What's the maximum amount an acquisition can occur at for an undisclosed amount?
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It seems that many startups don't disclose their acquisition price, and I think they can only do that if the deal is under a certain amount. What's that amount, and can you provide any references?
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Answer:
If both companies are private, then the amount doesn't ever have to be publicly disclosed. If the buyer is publicly traded, there is no set amount. They only have to disclose the amount if the amount being paid will have a material impact on their earnings. For a company like Microsoft, Google or IBM, the amount can be hundreds of millions before a disclosure is necessary. I've seen Microsoft, for example, buy companies for $250-$275 million without disclosing the amount. For smaller companies, acquisitions in the low tens of millions often require a disclosure. Also, though the amount might not be announced when the deal is, you can often find the price in the buyer's next quarterly or annual report.
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