Ask Matt: Can I veto an acquisition?

Q: Can I veto an acquisition? 

A: If a company you own stock in gets a buyout offer, it's usually like money for nothing. Shares of companies targeted by a buyer usually jump to nearly the buyout price. You still can still say no.

It's been a somewhat busy year for mergers and acquisitions, with roughly $900 billion in U.S. deals being announced, says Richard Peterson, senior director of S&P Global Market Intelligence. The health care sector has been especially targeted, with $174 billion in announced deals so far this year.

There are reasons you might not want to sell to a buyer. You might feel the buyout offer undervalues what the company could be worth if the management team is given time and investment to execute the plan. You might also not want a company to sell out if you don't see a better alternative to put your money after the buyout. Some investors might not like the company that's buying the company or object on another basis.

You will get a say. Just about all acquisitions require the approval by both the target's board of directors and the shareholders. If you don't own many shares, expect to get overruled. Not many shareholders to agree with you, especially if the company is bought at a premium.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or @mattkrantz on Twitter.