After two years of caution, dealmakers are once again pursuing bold, transformational transactions. Beneath those headlines, a quieter revolution is taking shape. More public companies are deciding they would rather be private again.
U.S. M&A volumes jumped 32% through the first three quarters of 2025 to roughly $1.6 trillion, according to Dealogic. Some of that surge came from blockbuster transactions such as Union Pacific’s $85 billion acquisition of Norfolk Southern, creating the first coast-to-coast U.S. rail network; Electronic Arts’ record-setting $55 billion buyout by a consortium led by Silver Lake and Saudi Arabia’s Public Investment Fund; and Palo Alto Networks’ $25 billion purchase of CyberArk. (Note: Neither I nor Solomon Partners has any current relationship with any of the companies mentioned in this piece.)
While the megadeals capture attention, the more telling story lies just below the surface. Across sectors, the data clearly shows that many companies are choosing to leave the public markets behind.
Why Are So Many Firms Choosing To Be Private?
Global take-private volume has climbed from a median of about $64 billion per quarter in 2023 to nearly $100 billion in 2025—a jump of more than 50%, as of Oct. 1, 2025, according to FactSet. The motivations vary, but the patterns are clear: Rising market volatility, mounting compliance costs and record levels of private-equity dry powder all play a part.
For smaller public firms, especially those with market capitalizations below $1 billion, the math no longer adds up. The costs associated with being a public company, from regulatory filings to investor relations, have become overwhelming. The benefits, meanwhile, have diminished amid relentless short-term scrutiny. For many boards and CEOs, going private isn’t an admission of weakness; it’s a deliberate strategic reset.
Electronic Arts’ move is emblematic of the trend. Management spoke of accelerating innovation, but the subtext was familiar: years of stagnant revenue, a flat stock price and pressure from investors demanding near-term results. Other well-known names such as Walgreens, Skechers and Squarespace reached similar conclusions. In each case, the public markets had become a distraction and were not conducive to supporting the transformational reset these businesses required.
Over the past three years, 233 companies that went public within the prior five years were taken private—a 58% increase from a decade earlier, as of Sept. 16, 2025, according to FactSet. Among them were 44 firms valued at more than $1 billion, compared with just eight during the same period 10 years ago.
Many of these reversals trace back to the 2021 IPO and SPAC (special purpose acquisition company) boom, when companies rushed to market amid record liquidity. Once valuations normalized, private equity stepped in to acquire undervalued assets that had solid fundamentals but were unable to weather a downturn under the glare of public shareholders with limited patience.
A Longer-Term Shift
The longer-term shift is equally striking. Twenty-five years ago, nearly 7,000 companies traded on U.S. exchanges. By 2024, there were approximately 4,000—a decline of more than 40%. Over that same time frame, the number of private-equity-backed companies surged. Private capital hasn’t just filled the gap. It has redefined the landscape for many companies seeking alternative capital sources to public ownership.
For many executives, the allure of private ownership goes beyond cost savings. It offers the freedom to think long-term, align closely with investors and make bold moves without the glare of public markets.
Meanwhile, several of the decade’s biggest public mergers are now being unwound. Kraft Heinz, Keurig Dr Pepper and Warner Bros. Discovery—all once touted as transformative combinations—are splitting apart. Each overestimated synergies, underestimated complexity and struggled to adapt as consumer trends shifted. In all cases, the lesson appears unmistakable: Scale without agility no longer guarantees success.
Despite the surge in take-privates, the public markets remain vital. The IPO window is gradually reopening for companies with clear business models and durable growth. Klarna, Figure and Figma all debuted this year to strong investor demand. For the right businesses, liquidity, visibility and access to capital remain powerful advantages.
Final Thoughts
What’s unfolding appears to be less a retreat from the public sphere and more a rebalancing between liquidity and control. The boundary between public and private capital is blurring as institutional investors expand capital allocations and CEOs seek greater strategic flexibility.
For today’s corporate leaders, the question is no longer simply whether to be public or private. The real challenge is where their business can create the most durable value.
Whichever path they select, long-term success will hinge less on where a company trades than on the discipline and purpose with which they operate.
Jeff Jacobs is a Member of the Forbes Finance Council and this article originally appeared on Forbes.com
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