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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Somerfield chief executive Paul Mason said: "It's not been easy, but I really believe that the take private of Somerfield has allowed the business to be transformed in a way that just couldn't have happened in the public markets.