Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9. Going private The process by which a public company ceases to be a public company is referred to as going private. The entire equity
9. Going private The process by which a public company ceases to be a public company is referred to as going private. The entire equity of the public company is purchased by a smaller group of investors. . The If a public company is bought using funds collected by the company's directors and officers, it is referred to as a outside equity in a buyout often comes from private equity fund. Going private affects the liabilities and equity side of the balance sheet and rearranges the ownership structure. Private equity funds raise capital from institutional investors and high-wealth individuals. With this capital, private equity funds work toward increasing the value of the company and devising a strategy for a profitable exit plan. Consider the following statement about the benefits of going private from the company's perspective: Going private helps save administrative costs related to securities registration, reports, and investor relations. Is the stat ent true false? O False O True
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started