Practical Law Glossary Item 9-382-3514 (Approx. 3 pages)
Glossary
Going Private Transaction
A public company "goes private" when it completes a transaction (or series of transactions) with the result that it is no longer required to file reports with the Securities and Exchange Commission and can deregister its equity securities. A company can also go private when a class of its equity securities is no longer listed on a recognized securities exchange.
Several transactions can result in a company going private, including:
The most common types of going private transactions are:
Acquisitions by a controlling stockholder of a subsidiary with publicly traded shares (these transactions are also commonly referred to as squeeze-out mergers).
Acquisitions by a significant but non-controlling stockholder.