Eight Key Differences: Public vs. Private Company Acquisitions in the U.S.

This article originally appeared in the January 2017 issue of Transaction Advisors. Reprinted with permission. Any opinions in this article are not those of Winston & Strawn or its clients; the opinions in this article are the authors’ opinions only.

With the Dow Jones Industrial Average setting 17 record high closings since the 2016 election and the Federal Reserve unanimously approving its second rate increase in a decade, the U.S. economy is showing signs of heating up. The market for M&A deals in 2016 has also rebounded from 2015 with 35 public company take-private transactions having been announced in 2016, as compared to 30 deals the prior year. Deal conditions continue to remain extremely favorable: both buyers and sellers have improved confidence in the economy, interest rates remain low, and both strategic and private equity buyers have historically high levels of cash reserves and equity commitments, respectively. Private equity funds and strategic buyers are seeking more and different ways to deploy capital.

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