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 ?
Also, the company said that the going private transaction would not be completed by 31 December 2017, the termination date of the merger agreement.
Yet, despite the enormous impact the credit crisis had on the number of firms going private, some firms did indeed go private post the crisis, as is to be expected given the varying strategies of private-equity firm deal makers (Bacon et al.
The first thing that came to my mind when I read the news about Dell going private was that this might affect the quality and support of Dell equipment," Nguyen said.
Fidelity National Information Services didn't even get that far as going private, though it tried.
Magnotta Winery Corporation (TSX: MGN), a Canada-based wine producing company, has announced its intention of going private.
First, we use a more focused definition of going private than previous related studies (discussed shortly), in which we examine firms whose shares no longer trade in any market and which no longer provide publicly available financial information.
In contrast, firms going private enjoy reasonable profits and abundant cash flow (Lehn and Poulsen, 1989; Denis, 1992; Opler and Titman, 1993).
Going private liberates the CEO to focus on longer-term issues and to undertake difficult restructurings without the intrusions of public investors.
Causes and Economic Consequences of Voluntary SEC Deregistrations, indicated that 20 percent of companies surveyed were considering going private, representing a roughly 50 percent increase from the same study conducted in 2003.
WITH reference to the problems encountered by councillor Mike German, and others, with their dentists, we all know that these problems have arisen because of a collapse in the number of NHS dentists due to so many dentists going private.
Furniture giant DFS has announced a surge in operating profits, reaping "substantial benefits" since going private.