going-private-transaction

Vocabulary Word

Definition

'Going-private transaction' is when a publicly-traded company moves to private ownership. It often involves a buyout, where one or few entities buy up the company's publicly available shares.

Examples in Different Contexts

In mergers & acquisitions, a 'going-private transaction' is seen as a strategic move for companies seeking to streamline operations and focus on long-term growth without public market scrutiny. A corporate strategist might discuss, 'Going private can offer a strategic advantage by freeing the company from the volatility and distractions of the stock market.'

Practice Scenarios

Tech

Scenario:

The current market volatility is affecting our tech startup's stability. We need to look into significant operational changes.

Response:

I agree, structuring a going-private transaction might insulate us from market volatility and help us focus on long-term goals.

Impact

Scenario:

The need to constantly please shareholders is affecting our mission-driven work. Maybe a different business structure would allow us to make more impactful decisions.

Response:

You're correct. A directly impact-driven approach can be implemented by a going-private transaction, more aligned with our mission.