

What happens when a private company acquires a public company? - geektips

Hi Hackers , I like to know What happens when a private company acquires a public company ?
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hkarthik
I can share some anecdotes from a family member who worked as a Senior Design
Engineer at a semiconductor company which went from being a public company to
being purchased by a private equity group.

* His stock all converted to straight cash. This resulted in a pretty large tax bill as some of it was subject to capital gains tax since he'd only acquired it a few months before the acquisition. He probably should have planned for this better.

* The company went into serious cost cutting mode. Much of the R&D was moved offshore into Design Centers in Israel and India. This put US-based engineers like himself into a fairly miserable position and he left soon after. I suspect most of this was done to improve the balance sheet and make it attractive for another public company to buy it, which still hasn't happened.

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mooism2
Your question is a bit vague.

Do you know what happens when a public company acquires another public
company?

Do you know what happens when a private company acquires another private
company?

What aspects of a private company acquiring a public company are you curious
about?

