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Public and Private, National and International Companies

Please answer the following questions: (125 words each)

Many companies over the past few years have used private equity financing to become private (closely held) companies. These were publicly traded companies. What are some advantages and disadvantages converting to a private company from a publicly traded company with common stock traded on a large public exchange such as the NYSE?

Why might a public company consider a leveraged buyout (LBO)? What is the role of mezzanine financing in an LBO?

What are the most important metrics to use when evaluating the results of an acquisition? How long after completing the acquisition should the acquiring company wait before completing its evaluation of the deal?

Should the required rate of return for firms with international projects be different from the required rate of return for similar domestic projects?

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The response addresses the queries posted in 714 Words, APA References

Public and Private, National and International Companies

1.

Advantages of converting to privately held company from a publicly traded company include the following:

The owners and the managers would be the same and they would know the exact situation of the company and the requirements of funds; so there is more stability and control over the operations.
There would be much reduced burden of paying dividends to the equity shareholders because in a publicly traded company on a big stock exchange, there are thousands of shareholders who have to be paid a dividend on their investments.
The owners of the private companies do not have to disclose much about their business as in case of a publicly traded company.
Disadvantages of converting to privately held company include the following:

The companies whose common stock is listed and traded on a large public exchange have huge credibility and goodwill and thus, more capacity to raise debt or funds from the market. So, if a company converts from a publicly traded to private company, it would lose its credibility.
The public company has ...

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The response addresses the queries posted in 714 Words, APA References

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