Going Private
Going private is a transaction that usually involves changing the client’s
form of external reporting requirements. The most common transaction is
a public company buying out (redeeming) a group of common shareholders
to convert to a private company. Upon completion of the transaction, the
firm no longer files report with the SEC. This transaction often entails
the issuance of a fairness opinion, which our investment bank issues to
a committee of the board of directors to conclude that the buyout is fair
to all equity holders from a financial point of view.
Going private applies to public companies listed on the primary domestic/foreign
exchanges, the one-off exchanges, and the Pink Sheets. It could also be
used when a non-profit converts to a for-profit, whereby the for-profit
must purchase the assets of the non-profit at fair market value. In this
instance, the citizens of the state are the stakeholders who must be treated
fairly and reasonably.