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. If a public company is bought using borrowed funds, it is referred to as a management buyout leveraged buyout. 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: Managers start focusing more on the short-term, rather than the long-term, impact on the firm's value after the company goes private. Is the statement true or false? True False