Definitions (2)

1. The repurchasing of all of a company's outstanding stock by employees or a private investor. As a result of such an initiative, the company stops being publicly traded. Sometimes, the company might have to take on significant debt to finance the change in ownership structure. Companies might want to go private in order to restructure their businesses (when they feel that the process might affect their stock prices poorly in the short run). They might also want to go private to avoid the expense and regulations associated with remaining listed on a stock exchange.
also called going private. opposite of going public.
2. The process of moving from a government-controlled system to a privately run, for-profit system.

Use privatization in a sentence

The privatization procedure was a really important process and it was done by repurchasing from the employees, which interested me.

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We opted for a privatization strategy in order to maximize our control as well as profits, and so far the results seemed to be promising.

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Key members of the board argued heavily against the privatization of our company, but I feel it is the best way to avoid financial trouble as we rebuild your father's company according to your vision.

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