Guide

Key Considerations for Going-Private Transactions in Canada

June 17, 2020
going-private transactions
Authors
Gordon N. CameronPrincipal, Head of New York Office

To assist interested parties in navigating a going-private transaction in Canada, we have prepared the following summary of key considerations.

What is a Going-Private Transaction?

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.

There are two common reasons a going-private transaction is proposed:

  1. Management, or one or more shareholders of the target company, wants to buy-out the other public shareholders (called a Management Buyout or MBO)
  2. A third-party sponsor proposes to acquire the target company, with or without the support of management or a group of existing shareholders.

Going-private transactions are also sometimes referred to as leveraged buyouts (LBOs) as the party leading the go-private will often finance the purchase through debt at the target operating company level.

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For informational purposes only

This publication provides an overview of legal trends and updates for informational purposes only. For personalized legal advice, please contact the authors.

Authors

Gordon N. Cameron, Principal, Head of New York Office
New York - United States  •   212.680.4121  •   camerong@bennettjones.com