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One thing that I have tried understanding in the past is why is there secrecy around financials as far as acquisitions are concerned. I mean, what could be poss
by paraschopra 17y ago
One thing that I have tried understanding in the past is why is there secrecy around financials as far as acquisitions are concerned. I mean, what could be possible negatives associated with revealing that information?
- fnid 17y agoMaybe they only paid $50,000 for it or something. When people see "Acquires, yada yada..." they expect it is for millions. If someone sees 5 figures there or even 6, they are disappointed.
- maurycy 17y agoIn some cases, acquisition might be a better and cheaper PR than going directly to newspapers, as it signals that acquirer has money, is aggressive and allows to use, at least for a while, acquired company's PR karma.
- icey 17y agoWhat could be the possible positives with revealing that information?
- paraschopra 17y agoPerspective on what the prevailing market rates are for startups of this scale and scope.
- deleted 17y ago[deleted]
- hughprime 17y agoFor an entrepreneur, it could be pretty awkward to have everyone in your life know exactly how much money you've just acquired, especially if it's a lot. For a VC, on the other hand, it's pretty good business to let everyone know how much one of your companies was just acquired for, especially if it's a lot. I wonder, when we do hear about the amounts paid, whether that's a condition inserted by the VCs, (or whether there's some law requiring it when, say, the acquiring entity is a public company).