Take-private
A take-private transaction occurs when a company’s publicly traded shares are purchased by private investors, often led by a private equity firm, with the intent to delist the company from a stock exchange. This process typically involves significant restructuring and is used to gain more operational control away from public market scrutiny. Take-private deals are often seen in industries ripe for restructuring or growth outside of public market pressures.
Key Takeaways
- Publicly traded company’s shares are bought to delist it.
- Commonly led by private equity firms.
- Allows for operational control away from market scrutiny.
- Typically involves major restructuring efforts.
