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.

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.

Investment dictionary. . 2012.

Look at other dictionaries:

  • going private — n: the process of transforming a public corporation into a close corporation by terminating the registration of the corporation s stock, the listing of the stock on an exchange, or the active trading of the stock on the market Merriam Webster’s… …   Law dictionary

  • Going Private — Als Delisting (englisch: to list – notieren, verzeichnen), seltener auch Börsenabgang bezeichnet man in der Finanzierungslehre die dauerhafte Einstellung der Börsennotiz einer Aktiengesellschaft. Das Delisting ist ein verwaltungsrechtlicher… …   Deutsch Wikipedia

  • Going Private — Überführung einer öffentlichen, börsennotierten Gesellschaft in eine private, nicht an den öffentlichen Aktienmärkten gehandelte Unternehmung. Gegensatz: Going Public (⇡ IPO) …   Lexikon der Economics

  • going private — When publicly owned stock in a firm is replaced with complete equity ownership by a private group. The firm is delisted on stock exchanges and can no longer be purchased in the open markets. Bloomberg Financial Dictionary …   Financial and business terms

  • going private — Process by which a publically owned company becomes a privately held company. Causing of a class of equity securities to be delisted from a national securities exchange or the causing of a class of equity securities which is authorized to be… …   Black's law dictionary

  • going private transaction — n: a corporate action (as a recapitalization, share repurchase, or tender offer) taken as part of going private Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. going private transaction …   Law dictionary

  • Going-private transactions — Publicly owned stock in a firm is replaced with complete equity ownership by a private group. The shares are delisted from stock exchanges and can no longer be purchased in the open markets. The New York Times Financial Glossary …   Financial and business terms

  • Private equity in the 21st century — relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub industries, leveraged buyouts and venture capital experienced growth along parallel although… …   Wikipedia

  • Going public — Unter einem Börsengang, engl. Initial Public Offering oder kurz IPO (früher auch „Going Public“ genannt) oder auch Primary Offering, versteht man das erstmalige Angebot der Aktien eines Unternehmens auf dem organisierten Kapitalmarkt. Die… …   Deutsch Wikipedia

  • Private equity — In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. There is a wide array of types and styles of private equity and the term private equity has… …   Wikipedia

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