Mergers and Acquisitions: Private vs. Public Deals

Tom Terrarosa of The Deal recently sat down with several financial professionals to discuss M&A transactions. In partnership with Intralinks, the group dove into a 25-year study of over 78,000 worldwide M&A transactions conducted by London’s Cass Business School.

With the market currently experiencing a 7.8 percent deal rate failure, the worst the market has seen since the financial crisis, this group looked to find the answers to why deals are failing.

Many have begun to wonder, is there something more company-specific going on in the M&A market? This study investigates 5 key areas that answer the question of why some bids are more likely to be successful than others.

On a macro level, failed deals throughout the entire M&A landscape share many characteristics. However, public targets fail to complete deals far more often than private targets. There is a very real distinction between public M&A vs. private M&A.

William Blair’s Head of Global M&A, Mark Brady, mentioned that information that exists regarding public companies contains such a very high degree of publicity that the deal-making landscape is often wildly affected. Public companies typically have so many moving parts that magnitudes of individuals and their respective organizations that are highly affected throughout the process of a deal, while private companies are able to keep the deals much more discrete. Often, only the executive c-suite are aware of the intricacies of a deal until it is announced.
To learn more about the M&A landscape, watch this video.

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