Delisting

Question 1

How to go private in US and EU?

Answer 1

Going private is done through an LBO in US and a BOSO (Buy out with Squeeze out) in EU.

Question 2

Which are the reasons to go private?

Answer 2

lack of liquidity benefit, lack of financial visibility, weak access to equity capital, financial constraints, risk sharing potential, loss of confidentiality

Question 3

Costs of keeping a company public?

Answer 3

direct (annual listing fees…)
compliance
financial distressed
indirect costs

Question 4

Cons of going private?

Answer 4

reduced access to capital, increased cost of capital, decreased regulatory controls, lower liquidity, portfolio diversification, windows of opportunity.