The process by which a public company ceases to be a public company is referred to as going private. In this transaction, the entire equity of the public company is purchased by a smaller group of investors-usually with the firm's current senior management maintaining or increasing their ownership positions in the firm. If a public company is purchased 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 purchased firm's balance sheet and rearranges its 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. True or false: Because the number of shareholders in a privately owned company is less than in a public company, shareholder involvement and participation increases. True False Once a company goes private, a group of shareholders owns the firm's equity. The process by which a public company ceases to be a public company is referred to as going private. In this transaction, the entire equity of the public company is purchased by a smaller group of investors-usually with the firm's current senior management maintaining or increasing their ownership positions in the firm. If a public company is purchased 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 purchased firm's balance sheet and rearranges its 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. True or false: Because the number of shareholders in a privately owned company is less than in a public company, shareholder involvement and participation increases. True False Once a company goes private, a group of shareholders owns the firm's equity