What does it mean for a company to go private? Is it the same as liquidation? Is it a good thing for the company?

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I’m writing a story about a company with a new leader focused on making stock prices rise. I want to get the company to do basically the opposite of making their company public. From what I’ve read, you don’t want to do buybacks as a company and going private might be equally as bad, but is it?

In: Economics

13 Answers

Anonymous 0 Comments

Liquidation means selling off assets and going out of business.

Going private means buying up all the public shares so that company is no longer publicly traded. It can be good if owner doesn’t saddle business with too much debt, as owner can focus on longer term strategy vs. always having to hit quarterly numbers. But it also means somebody can run a company into the ground and there is nobody to stop them — see Musk and Twitter.

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