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 refers to liquid cash. Straight up dollar bills that you can do whatever with. Liquidation is the process of turning a company from physical assets to liquid cash. Basically it’s like selling all of your belongings to pay off people you owe money to.

I wouldn’t really say it’s like going private. Going private is just buying back all your shares. Sometimes struggling companies do it, but it’s not the deathrattle that is liquidation.

What is the purpose in your narrative of the company going private? How does it relate to the CEO trying to make the stock price rise?

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