According to a recent survey by KPMG Corporate Finance, 29 public-to-private deals totalling £6.4bn were completed in 2001. public-to-private transactions command a significant share of the private equity market, generating a third of the value of all deals completed last year. Although the number of these transactions fell towards the end of 2001, with only two transactions completing, they will remain an established feature of the market.
The decision to take public companies private is typically made to address a low share price and reap the benefits of running a company free from concerns about short-term fluctuations in the share price.
