InvestmentBankingPublicandPrivatePlacement幻灯片.pptVIP

Methods of Going Private Two ways of going private: A publicly owned company is purchased by a private company or a private equity fund To repurchase all publicly traded shares from stockholders Leveraged Buyout Either the management or some other investor group borrows the needed cash to repurchase all the shares of the company The company exists with substantial debt and heavy interest cost Management of the private company must sell assets to reduce the debt load Corporate restructuring occurs: Divisions and products are sold Assets redeployed into new, higher-return areas Leveraged Buyout