The New Exit Strategy: Are 'Take-Private' Deals a Sign of Public Market Pessimism?

In 2023 I told a founder to keep pushing for a public listing because the board wanted the headline. Six months later, the IPO window was still shut and the best take-private offer had expired. We lost leverage and the price dropped. That mistake was on me.

Here is the thing: take-private deals are not just a market fad. They are a response to higher scrutiny, uneven IPO windows, and a need for operational freedom. If you treat them like a backup plan, you will negotiate from weakness.

PwC reports global IPO proceeds of $105.6 billion from 876 IPOs in 2024 and $143.3 billion from 1,014 IPOs in 2025. The recovery is real, but it is still a filter, not an open door.

That is why take-private deals remain attractive. If you cannot guarantee a premium public valuation, a private exit can be the more reliable path.

• 01IPO proceeds improved in 2025
• 02Deal count is up but still selective
• 03Take-private deals fill the gap

Most advisors will disagree, but I see take-private deals as operational turnarounds, not financial engineering plays. Buyers want a clean earnings base, a credible fix, and enough downside protection to justify the leverage.

If you cannot show transferability of cash flow and a clear plan, you will not get the premium you want.

TechFlow Solutions in Stockholm had SEK 22M revenue and a mixed services and SaaS model. Public buyers saw complexity, not upside. We restructured the business and positioned it for a take-private style carve-out: services sold at 4.0x EBITDA and the SaaS piece stayed private.

The deal worked because the story was cleaned before the process, not during it. That is the core lesson in take-private deals. The growing pressure on companies stuck without an exit makes this restructuring approach increasingly common.

• 01Hybrid model was simplified before launch
• 02Clear EBITDA bridge built buyer confidence
• 03Private path preserved optionality

Founders want a clear path. I use a four-step sequence that keeps take-private deals financeable and fast.

Run this before you go to market and you will shorten exclusivity and protect leverage. It also gives lenders and buyers confidence that timelines are real.