Going Private Falling Off
March 14, 2005,
Chicago — The number of U.S. public companies looking to go private dropped by almost 50 percent last year, from almost 100 in 2003 to fewer than 50, according to Grant Thornton LLP, the U.S. arm of the global accounting, tax and business advisory company.
The decline, the company said, “can be attributed to the rise in equity markets that occurred in 2003. In 2002 and 2003, public companies were going private at multiples below those paid by private equity players in the private market. In 2004, that situation reversed.”
Other factors typically associated with smaller companies going private, the company said, are the increased regulatory and disclosure requirements, as well as the costs, of being a public company.