Acquired Effects

[apbrrlwo21]

If a company is about to acquire another company that is established and would double their revenue, what generally happens to stock prices before and after the acquisition?

[mmaevhcc75]

Depending on how much the acquiring company is paying, their stock usually drops ahead of the acquisition.

[wdunxzfq42]

They now only have a non-binding LOI so I guess I have to watch the press releases and buy before they make the deal final.

[lkvsrcup23]

The details of the deal will dictate what happens.

If I was buying a black box from you for $5, and this magic box printed five $100 bills everyday, then my stock would rallying big time!

[uunaldqx22]

The company getting bought almost always goes up though, as a general rule. Of course there can be exceptions, but it's a fairly safe bet.