Going-Private In Canada

A going-private transaction converts a public company into a private company, eliminating the public shareholders and consolidating share ownership under one or a few shareholders.

Public companies go-private to:

• reduce the expenses of being a public company, including financial reporting, regulatory, compliance, investor relations and professional services;
• increase operational flexibility and focus on running the business with a view to maximizing long-term value;
• implement an exit strategy for current shareholders or possible ways to achieve a transfer of business, more particularly with controlling shareholders;
• lessen the likelihood of becoming a target of potentially opportunistic buyers; and