There's no question acquisitions are often botched. But you're protected against the consequences of this if the acquirer is a public co. I wouldn't advocate being acquired by a private co except in exceptional circumstances.

This is a very good point - acquisitions are a messy business.

Can you give us an example - under what circumstances would selling to a private company be a smart move?

For cash, or if the company's stock seemed a very good bet, and you were young (or rich) enough that you were willing to risk having no diversification.

One example would be if you were selling stock for cash. Although I don't know how often this happens.

Really? What about brlewis's statement: "You may want the co managed to maximize customer satisfaction for long-term stability (ala Craigslist), but a public acquirer will likely manage to maximize quarterly revenue"?

If you're being acquired, you're walking away. You should understand that the company as you know it is already dead.

The goal becomes to make it to the walkaway date with as little trouble as possible. To continue to manage "your baby" post acquisition is futile.

Hence, even managed quarterly, public co. is a better option for you.