Delisting Flashcards
1
Q
How to go private in US and EU?
A
Going private is done through an LBO in US and a BOSO (Buy out with Squeeze out) in EU.
2
Q
Which are the reasons to go private?
A
lack of liquidity benefit, lack of financial visibility, weak access to equity capital, financial constraints, risk sharing potential, loss of confidentiality
3
Q
Costs of keeping a company public?
A
direct (annual listing fees…)
compliance
financial distressed
indirect costs
4
Q
Cons of going private?
A
reduced access to capital, increased cost of capital, decreased regulatory controls, lower liquidity, portfolio diversification, windows of opportunity.
