Going Private

Filed Under » , , ,
Dictionary Says

Definition of 'Going Private'

A transaction or a series of transactions that convert a publicly traded company into a private entity. Once a company goes private, its shareholders are no longer able to trade their stocks in the open market. Private equity firms will typically purchase a struggling company, make it into a private entity, reorganize its capital structure, and issue stocks once a profit can be realized.
Investopedia Says

Investopedia explains 'Going Private'

A company typically goes private when its stakeholders decide that there are no longer significant benefits to be garnered as a public company. Privatization will usually arise either when a company's management wants to buy out the public shareholders and take the company private (a management buyout), or when a company or individual makes a tender offer to buy most or all of the company's stock. Going private transactions generally involve a significant amount of debt.

Companies are often taken private when they need time to restructure their debt or operations prior to becoming a public corporation once again.

Search results for

'Going Private'

  • Why Public Companies Go Private

    http://www.investopedia.com/articles/stocks/08/public-companies-privatize-go-private.asp
    ... Because there are advantages and disadvantages to going private as well as short-
    and long-term issues to consider, companies must carefully weigh their ...

  • If I reject the tender offer for acquisition of the stock that I ...

    http://www.investopedia.com/ask/answers/06/rejecttenderofferpublictoprivate.asp
    ... The SEC.) If you're a shareholder in a company that is going private, there are
    a few things you should know before you think about rejecting the tender offer. ...

  • BJ's Wholesale Looks To Go Private

    http://stocks.investopedia.com/stock-analysis/2011/BJs-Wholesale-Looks-To-Go-Private-BJ-COST-BIG-NDN-SHLD-FDO0609.aspx
    ... BJ's Wholesale Looks To Go Private. ... The joint bid by the private equity
    firms would value the wholesale retailer at $2.8 billion. ...

  • For Companies, Staying Private A Matter Of Choice

    http://www.investopedia.com/articles/stocks/08/companies-stay-private.asp
    ... in 1999. Prior to going public, UPS regularly offered its private stock
    for employees to purchase or as compensation. While the ...

  • What does 'going public' mean?

    http://www.investopedia.com/ask/answers/04/061704.asp
    Going public refers to a private company's initial public offering (IPO), thus becoming
    a publicly traded and owned entity. Businesses usually go. ...

  • Dole's In The Doldrums

    http://stocks.investopedia.com/stock-analysis/2010/Doles-In-The-Doldrums-DOLE-DLM-FDP-CQB0518.aspx
    ... If it remained a public company instead of going private, it's very likely the stock
    price wouldn't have done much because the enterprise value is actually ...

  • Big News In Consumer Electronics

    http://stocks.investopedia.com/stock-analysis/2010/Big-News-In-Consumer-Electronics-RSH-BBY-WMT-TGT0603.aspx
    ... then take the company private. By going private the company could
    theoretically save a bunch of money. How so? Odds are it wouldn ...

  • Big Lots' Bumpy Quarter

    http://stocks.investopedia.com/stock-analysis/2011/Big-Lots-Bumpy-Quarter-BIG-BJ-COST-DG-BRK.A-FDO-NDN-APO0826.aspx
    ... BJ's Wholesale Club (NYSE:BJ), which is going private, and Costco (Nasdaq:COST),
    provide the wholesale experience for bargain shoppers. ...

  • Is The US Going To Goose BMO's Growth?

    http://stocks.investopedia.com/stock-analysis/2011/Is-The-U.S.-Going-To-Goose-BMOs-Growth-BMO-RBC-PNC-HBC-USB0824.aspx
    ... While that number is going to look shockingly low to US investors, readers should ...
    profits were up a much more modest 2%, while the bank's private client and ...

  • Private Equity Well Drying Up

    http://stocks.investopedia.com/stock-analysis/2007/Private_Equity_Well_Drying_Up.aspx
    ... Current State: Lawmakers are going after this loophole with increasing intensity,
    especially now that some private equity firms are going public. ...

Related Articles

Partner Links