Why are acquisitions more common than IPOs?

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JASON LEMKIN

Because there are more buyers.

There were ~50 Tech IPOs in 2014.  Will 2015 be a blockbuster year for tech IPOs? 

There were hundreds of acquisitions, if you include the smallest ones, over 1,000 apparently: 2015 Will Be The Year Of The Tiny Tech Acquisition

It’s not apples-and-apples.  There were more billion+ IPOs in tech than billion+ acquisitions, near as I can tell, in ’14.  And there probably weren’t more than 100 or so $100m+ acquisitions.

But acquisitions are more common because there are more buyers, which is in part because they can buy at different stages and for different reasons than buyers in an IPO.

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Published on September 1, 2015
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