If a public company is bought using funds collected by the company$$s directors and officers, it is referred to as a $.$ The outside equity in a buyout often comes from a 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:

Once a company goes private, its leverage decreases and costs related to servicing debt also decrease.

Is the statement true or false?

True

False