Insight

Is it time to go private?

Going private is often an appealing option for public companies during recessions, when valuations tend to decline sharply.

During 2022, the S&P 500 index declined 20 percent and inflation lingered at its highest point in decades. Interest rates also rose to a multiyear high, which led to higher borrowing costs and created a challenge for some public companies that are struggling to raise capital. During 2022, the value of take private deals was $258 billion, as companies took advantage of cooling valuations to step back from the demands of quarterly reporting or wanted more scope to overhaul the firm’s cost structure. Deal volume is likely to increase as private equity firms still have considerable cash available.

Contact us

Abs Kotulski

Abs Kotulski

Principal, Advisory, Strategy - TE, KPMG LLP

+1 212 954 1733
Ron Shkedi

Ron Shkedi

Director Advisory, KPMG LLP

+1 646-708-1690
Tim Lashua

Tim Lashua

Partner, Deal Advisory & Strategy, KPMG LLP

+1 415-707-9816
Matthew Malriat

Matthew Malriat

Director Advisory, Accounting Advisory Services, KPMG LLP

+1 267-256-5851