So far this year, 47 deals have been proposed or completed to take U.S. public companies private, compared to 39 IPO listings, per Bloomberg. The cumulative value of the privatization deals is estimated to be $113B, while the value of IPO listings was $9.3B. The largest take-private deals announced so far this year were Silver Lake's $10B buyout of software firm Qualtrics International and the Elliott Investment Management-led $4.4B buyout of drug-research firm Syneos Health. - Public companies are realizing that they cannot reach their long-term objectives while focusing on shareholders' short-term centric goals.
- Bloomberg Intelligence analyst Andrew Silverman adds, "Going private allows them to put aside shareholder goals, for a period, in order to refocus on their long-term strategy."
- Notable public listings so far in the year include Johnson & Johnson's consumer health division Kenvue's $4.4B IPO listing and solar power tracker NEXTracker's $734M public listing.
- Despite fast-casual restaurant chain Cava Group's $318M public debut this month, investors are still pessimistic about IPO listings.
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