DealLawyers.com Blog

EY Parthenon recently issued its monthly report on M&A activity for February 2026. One of the trends noted in the report is the increase in PE sponsor-backed take private deals. Here’s an excerpt:

PE acquisitions increased 9% in February from the prior month, including a continued focus on select public-to-private transactions. Recent take-private activity highlights how financial sponsors are pursuing public companies that exhibit strong underlying assets while facing structural constraints in executing long-term strategic plans within public markets.

By transitioning these businesses to private ownership, PE sponsors can pursue accelerated operational improvements and cost efficiency while selectively repositioning operating platforms toward higher-growth adjacencies or more efficient commercial models. This pattern reflects a renewed conviction in PE’s ability to capture multiyear value-creation opportunities through focused governance and faster decision-making cycles.

Overall deal activity in February showed deal value rising by 139% and volume declining by 15%. EY says this reflects a continuing emphasis on larger transactions. Transactions of $100 million and above are up 224% in value and down 9% in volume on a year-over-year basis, while $1 billion and above deals surged 319% in value and rose 38% in volume.

– John Jenkins