Steven Barth on Allure of Take-Private Deals – 'Public markets aren’t what they’re cracked up to be'

Foley & Lardner LLP partner Steven Barth offers extensive insight on the growing trend of family-owned consumer and retail businesses aiming to go private in the Axios article, “Family-owned companies see allure in take-private deals.”

“Public markets aren’t what they’re cracked up to be,” Barth said, highlighting the higher compliance costs and scrutiny public companies face. Barth explained that for family-owned businesses, going private at a fair price allows owners to “get away from living their life in a fishbowl,” though he noted the upsides of public equity, including greater liquidity and the ability to use stock for acquisitions.

Barth also touched on the unique appeal of family offices for owners seeking a take-private deal, commenting that while family offices can be highly sophisticated, they offer tailored services which appeal to founder-developed and family-owned businesses for which “culture is almost everything.”

“They want to keep their legacy and culture in place, and it isn’t all about the money,” he added.

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