How does a public company go private? Don’t they have to convince all shareholders to sell back their shares?

Question

How does a public company go private? Don’t they have to convince all shareholders to sell back their shares?

In: 19

Answer 1

For any decision you never have to convince *all* the shareholders, just a majority of ones. So shareholders will either agree with privatization, in which case they are already convinced, or they disagree, in which case they are a dissenting shareholder and therefore will typically have the option to sell anyway and leave the company.