Approximately what percentage of Mergers and Acquisitions transactions in the U.S. involve a publicly traded seller?

The correct choice reflects that approximately 3% of Mergers and Acquisitions (M&A) transactions in the U.S. involve a publicly traded seller. This figure highlights the relative rarity of publicly traded companies becoming targets in M&A deals compared to privately held companies.

Public companies often have a more complex structure, including their regulatory obligations, visibility to shareholders, and the necessity for more thorough due diligence processes. Additionally, the public nature of these companies means their valuations and operations are more transparent, making it challenging for buyers to negotiate favorable terms.

This percentage also underlines the prevalence of private company transactions in the M&A landscape, which typically far outnumber those involving public firms. The dynamic nature of the private sector, coupled with fewer regulatory hurdles and the potential for higher returns due to lower entry valuations, makes them attractive targets for acquisition.