Ernst & Young LLP recently published a report, which contains useful data, regarding the U.S. IPO market and the factors contributing to a decline in the number of IPOs. In particular, the study notes the contribution of increased M&A activity as a factor in the decline. These charts show the very significant jump in acquisitions of private companies from the IPO peak in 1996 (about 1,950 acquisitions) to 2016 when more than 4,800 private companies were acquired. We reprint below the three most relevant charts illustrating this trend.
The full report may be accessed here.