Walgreens, which went public in March, joined a parade of companies going private in recent months, including Nordstrom, Solar Winds and grill maker Weber Inc.

Earlier this year Blackrock CEO Larry Fink argued that the future of financing will not come from banks, corporations or the government but instead from private investors who will stand alongside these traditional options as a co-equal source of capital.

Today, only a tiny fraction of the world’s companies are publicly traded, and that fraction is shrinking. Raising money through an IPO—is becoming a rarity. Instead, 81% of U.S. companies with over $100 million in revenue are privately held. The percentage is higher in both the EU and UK.

There are multiple reasons why companies decide to go private. According to KPMG, benefits include: an opportunity to step away from the demanding quarterly earnings cycle to take a longer-term view, time to complete a strategic transformation, modify the business model, complete a merger or revise the company’s capital structure. Often, being a private company in the current climate of rapidly evolving markets make these transformations easier. Going private is often an appealing option for companies during or shortly after recessions when valuations in some sectors tend to decline. And with the exchange listing and accounting fees related to filing quarterly and annual reports, many small to mid-cap companies could save $1 million in these fees annually by going private.

Some companies have recently gone private in response to President Donald Trump’s tariffs. The world’s third largest shoe company Skechers, which went private in early May, cited the substantial costs associated with tariffs as an “existential threat” to it business. Retail Dive reported that Nordstrom’s deal to go private was affected by tariff concerns though it ultimately went forward with the deal; the company was delisted from the NYSE on May 21, 2025. According to law firm Clifton Larson Allen, the impact of tariffs can increase costs, disrupt supply chains, and lead to reduced profitability, making it harder for a company to be valued as a public entity. And CEO of JP Morgan Chase Jamie Dimon recently warned that the risk of an economic slowdown is not yet fully appreciated by consumers or the market.

For CEOs and boards, perhaps via a special committee, exploring a take-private deal involves a thorough analysis from the buyer’s point of view. For example, considering how the company’s performance, capital allocation and valuation compare to its industry peers. Scenario planning by the committee is advisable in the event that the take-private offer doesn’t occur. It’s also vital that management consider the outcome of a required shareholder vote, board approval as well as the various disclosures and SEC filings the company must issue when going private. KPMG provides a useful list to gauge your firm’s readiness to go private.

An upcoming Bentley University executive education course, in partnership with the Private Director’s Association, explores these and other topics for experienced C-Suite executives and board directors. Check Bentley University’s executive and professional education website for Fall 2025 dates.

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