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.

Articles Of Interest

  1.

    Looking For Profit In Privately-Held Companies

    Private companies offer unique opportunities for those with the knowledge and resources to take advantage.

  2. Why Successful Business Owners Sell Out

    Learn the motives that drive companies into the arms of an acquirer.

  3. How The Big Boys Buy

    Learn what those in-the-know look for when acquiring a company.

  4. If I reject the tender offer for acquisition of the stock that I own in a company and the company goes private, what happens to my stock?

    Since the passing of the Sarbanes-Oxley Act, a significant number of public companies have chosen to go private. The reasons why companies make this choice are as varied as the companies themselves, ...

  5. For Companies, Staying Private A Matter Of Choice

    Find out what firms have to gain by eschewing the windfall from a flashy IPO.

  6. Valeant Eyes Bausch & Lomb

    Canadian pharmaceutical company Valeant has made a name for itself through acquisitions. On May 27 it announced that it was buying Bausch & Lomb for $8.7 billion making it a global leader in ...

  7. Sears' Losses Widen In Q1 - Time To Merge With JC Penney?

    Sears Holdings delivered another brutal quarter May 23. CEO and majority owner Edward Lampert has his hands full trying to revive a truly broken department store. Rumor has Neiman Marcus and ...

  8. Arbitrage Squeezes Profit From Market Inefficiency

    This influential strategy capitalizes on the relationship between price and liquidity.

  9. Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.

  10. If Investors Won't Buy Retailers, Private Equity Will!

    Private equity seems to think the apparel retailing sector is on sale
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=8b1f9f13412ccd851f838f79cab2c5da