What is the difference between a private and public merger or acquisition?

Mergers and acquisitions (M&A) occur when two separate companies join forces to create a single company. There are two types of M&A: private and public. A private merger or acquisition occurs when a company that is not publicly traded, such as a family-owned business, merges or acquires another company. Because the companies involved are not publicly traded, the transaction can be done more quickly and privately, without involving regulators or stockholders. However, each party must still agree on terms and, in some cases, obtain approval from the state or federal government. A public merger or acquisition involves publicly traded companies that are bought and sold in the stock market. In a public M&A, the transaction is subject to more oversight and regulation from the Federal Trade Commission, the Security and Exchange Commission, and other government agencies. Any increase in the company’s stock price must be publicly disclosed and shareholders must approve the transaction. Because of the added oversight and regulations, public M&A is typically a longer and more expensive process compared to private M&A.

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What is the difference between a private and public merger or acquisition?

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