Table of Contents
For decades, the IPO was the ultimate prize. It meant validation, prestige, and access to capital. But lately, the dream has curdled. From Nordstrom to Walgreens to Guess, iconic brands are quietly slipping off the stock exchange and into the arms of private equity.
What changed?
From Dream to Disillusion
In the last recession, when the financial crisis hit in 2008, public-to-private deals collapsed. Credit markets froze, lenders retreated, and private equity sat on the sidelines. Back then, going public was still seen as the peak of success.
Fast forward to today, and the picture is inverted. Interest rates are high, but credit is flowing from private lenders. Instead of shying away, private equity firms are flush with “dry powder”—record amounts of unspent capital—and aggressively hunting undervalued companies. The result is a surge in take-private deals at a scale not seen since the buyout boom of 2007.
Why Companies Are Walking Away
Wall Street’s Short Leash – Quarterly earnings pressure makes long-term bets harder. In private hands, management can retool a brand without analyst backlash.
Undervaluation – Public markets often discount mature or out-of-favor industries. Private buyers see hidden value they can unlock.
Cost of Compliance – Being public brings heavy legal, reporting, and regulatory expenses. Going private strips those costs.
Strategic Freedom – Private ownership allows faster pivots, divestitures, and acquisitions without shareholder scrutiny.
Who’s Already Made the Jump
The trend isn’t abstract—it’s happening in boardrooms across industries. In just the past two years:
Walgreens Boots Alliance – Sycamore Partners taking the 100-year-old retailer private in a deal valued up to $24B.
Nordstrom – The Nordstrom family, with Mexico’s El Puerto de Liverpool, buying back the retailer for $6.25B.
Guess Inc. – Going private in a $1.4B deal to regain control of its brand direction.
Endeavor – Talent and media group taken private by Silver Lake at a $13B valuation.
Dayforce (Ceridian HCM) – Thoma Bravo stepping in with a $12.3B buyout.
Squarespace – Website platform going private in a $6.9B deal with Permira.
This is no longer the exception—it’s the new playbook.
The Economy’s Role
It’s not just Wall Street fatigue driving this shift. Consumer spending is under pressure. Inflation has reshaped household budgets, discretionary purchases are slowing, and companies in retail, apparel, and lifestyle are feeling the pinch. At the same time, wages, rent, and financing costs remain high, putting more stress on margins.
Public markets are quick to punish earnings misses in this climate. For management teams, private equity ownership can feel like shelter in a storm—room to reset strategy without a stock ticker measuring every misstep.
The Bigger Shift
This isn’t just about fashion labels or retailers. Software, healthcare, and financial platforms are all part of the same story. In 2024, nearly half of all $5B+ buyouts in North America were public-to-private deals—a staggering reversal from 2008, when activity had all but dried up.
The difference? Private credit and capital abundance. Where banks pulled back in the last crisis, private equity and direct lenders have stepped in, fueling an entirely new playbook.
Takeaway
Going public once symbolized arrival. Today, it often signals vulnerability. For many companies, the stock market has become less a dream and more a drag. Private equity isn’t just offering an exit—it’s offering a lifeline, with patient capital and fewer eyes watching every move.
The bigger lesson for business owners? The market is shifting from public spectacle to private strategy. In this environment, value isn’t just about growth—it’s about who controls the runway to execute it.
What I Read So You Don’t Have To
Bain & Co. 2025 Global Private Equity Report – Private-to-private deals now make up nearly half of all large buyouts, a level unseen since before 2008.
Weil 2024 Going-Private Study – Sponsor-backed U.S. going-private deals jumped 25% year-over-year, with healthcare and software leading.
WSJ on Walgreens Deal – Sycamore Partners is set to take Walgreens private in a deal valued up to $24B, ending a century on public markets.
AP on Nordstrom – The Nordstrom family, with Mexico’s El Puerto de Liverpool, is buying back the retailer for $6.25B to regain control.
Axios on Dayforce – HR software firm Dayforce will be taken private by Thoma Bravo for $12.3B, one of the largest software buyouts ever.
Resources
Disclaimer: Some of the links below may be affiliate links*
Sources & Further Reading:
Tools & Platforms You May Find Useful:
Kumo – AI-powered deal sourcing and CRM tailored for M&A professionals
BizBuySell – The largest online marketplace for buying and selling small businesses
Acquire.com – Streamlined platform to buy and sell startups and small businesses
MeetAlfred.com – LinkedIn and multichannel outreach automation
Outscraper – Web scraping tools for local business data, Google Maps, and more
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Postale.io – Affordable custom domain email hosting
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Beehiiv – A newsletter publishing platform built by newsletter creators
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