Going Private

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.

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Related Definitions

  1. Private Company

    A company whose ...
  2. Public Company

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  3. Private Equity

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  4. Management Buyout - MBO

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  5. Leveraged Buyout - LBO

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  6. Privately Owned

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  7. Management Buyout - MBO

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  8. Pooling Of Interests

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  9. Annual General Meeting - AGM

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