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 investment banking, 'going-private transactions' are facilitated by investment bankers who arrange the financing needed to buy out public shareholders. An investment banker might explain, 'Our role in the going-private transaction involves structuring the deal and securing the necessary capital from investors or lenders.'

Practice Scenarios

Business

Scenario:

Given our stock's ongoing underperformance, we need to consider alternative paths to bolster our financial standing.

Response:

In deed, a going-private transaction could provide us with greater flexibility and control over our decisions.

Creative

Scenario:

The combination of public pressure and financial predicament is straining our creative endeavors. Perhaps, it's time to rethink our growth strategy.

Response:

Yes, we could explore a going-private transaction to gain more freedom in our creative pursuits without external pressures.