The process by which a public company ceases to be a public company is referred...
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Accounting
The process by which a public company ceases to be a public company is referred to as going private. The entire equity of the public company is purchased by a smaller group of investors. If a public company is bought using borrowed funds, it is referred to as a Going private affects the liabilities and equity side of the balance sheet and rearranges the ownership structure. Private equity funds raise capital from institutional investors and high-wealth individuals. With this capital, private equity funds work toward increasing the value of the company and devising a strategy for a profitable exit plan. Consider the following statement about the benefits of going private from the company's perspective: Because the number of shareholders in a privately owned company is less than in a public company, shareholder involvement and participation increases. Is the statement true or false? O False O True
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