Mel Cherney Comments on Recent Shift to Private Equity Buyouts in The Wall Street Journal
As seen in The Wall Street Journal’s “Buyout Shops Look to Rivals for Deals”
The Wall Street Journal reports that there has been a noticeable increase in buyouts between private equity firms, as well as a decrease in private equity buyouts of public companies. This shift is driven by a number of factors, including the rising stock prices that increase the value of public companies, and the higher complexity of public company acquisitions than relatively simpler private ones.
According to Kaye Scholer Partner Mel Cherney, Co-Chair of the firm’s Corporate Department, “If you have a choice between a public company and a private company in the same industry, certainty of closing is much greater in a private deal.”