Buybacks of shares least preferred mode of exit for private equities

In 2018, the most popular mode of exit for PEs was strategic sale through merger & acquisition

The term ‘buyback of shares’ has got publicity on being mentioned in Café Coffee Day founder V G Siddhartha’s alleged suicide note. 

Buyback of shares is one way a promoter can offer an exit to a private equity (PE) investor. However, it has been the least preferred and has declined as a mode of exit in the past five years, shows data from VCCEdge. 

Preferred more are finding a strategic buyer, selling shares in the open market or through an Initial Public Offer (IPO) and selling to another investor (secondary sale). So far, 2019 has seen only five buyback deals; 2018 saw