going private

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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.

Going Private

A process in which the senior management of a publicly-traded company or a small group of investors buys all of the company's shares outstanding. Going private gives the management or investor group complete control of the company and allows it to operate without recourse to shareholders. Going private is often highly leveraged. When the management purchases the company, one usually refers to the act as a management buyout.

going private

The process by which a publicly held company has its outstanding shares purchased by an individual or by a small group of individuals in order to obtain complete ownership and control. The group wishing to take the firm private may feel that the market is undervaluing the shares. In addition, the purchaser(s) may not wish to meet the various requirements imposed on a publicly held company. Also called management buyout.
References in periodicals archive ?
Moreover, when credit is otherwise available, corporations can go private in order to raise the debt needed for projects without public market reprisal.
In theory, public firms should go private if the marginal benefits of doing so exceed the marginal cost.
Recently, Mehran and Peristiani (2010) examine the characteristics of firms going private at initial public offering (IPO) and over their public life, and argue that firms with falling institutional ownership and low turnover rate are less likely to benefit from the stock market and are more likely to go private.
There are many reasons to go private," he said, citing as examples increased flexibility, liquidity and greater strategic opportunities.
However, imposing requirement (iv) also labels as contested all transactions where managers proposed to go private with no prior knowledge of any control-related activity.
The surgery has chosen to go private as dentists believe a new contract will mean the erosion of patient care, but slashing the lists means 6,000 former patients are left without a dentist.
Only children whose parents agree to go private will continue to get free treatment.
Anyone who wanted to go private would have half their costs paid for on the NHS - depriving cash-strapped hospitals of funds.
Faced with the extra time and money required to meet the new rules, many smaller companies might now be tempted to go private.
Manchester College accounting and finance professor Frank Olive says that some public companies decide to go private to reduce litigation risk and avoid the intense scrutiny of shareholders.
The significant increase in the cost of debt financing since March 24, 2000, made the transaction less favorable and less attractive for the company's proposed new equity investors, leading the principal new-equity investor to withdraw its investment commitment," said Green of the group's decision to shelve plans to go private.
I would go private if I was working, it wouldn't be a problem, but when you are not working it's a difficult situation and you don't have many options.