Companies are usually taken private by a group of individuals or entities that include private equity firms, wealthy individuals, or sometimes the company's management team. This process is known as a leveraged buyout (LBO), where the group acquires all outstanding shares of a publicly traded company. The aim of taking a company private is often to facilitate strategic decisions and long-term growth without the regulatory requirements and scrutiny that come with being a public company. In an LBO, the acquiring group typically raises funds through a combination of their own capital, loans, and sometimes the company's assets or cash flow. They negotiate with the company's board of directors and shareholders to secure their consent and complete the transaction.
