Corporate Acquisitions Giving Way to Secondary Buyouts
October 24, 2012
So far this year, private equity investors have sold 177 U.S. companies to strategic buyers through corporate acquisitions, according to the PitchBook Platform. While corporate acquisitions continue to be the most popular exit method for private equity investors, their share of yearly exit activity is at its lowest level since 2006. Corporate acquisitions only account for 46% of the total exit count so far in 2012, down from a 54% share in 2011 and continuing a general downward trend since peaking at 60% in 2008. Much of the lost share has been picked up by secondary buyouts (sales to other PE investors), whose share of exit activity has grown every year since 2009 and now stands at 45% for 2012 to date.
