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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.