Section 6
Comparing Public and Private Financing
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
3 concepts
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Advantages of Public Financing
The main advantage in seeking public financing is that it offers a larger pool of funding for the company than private financing alone.
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Advantages of Private Financing
Private financing can enhance a firm's capital structure, save on costs, and improve managerial incentive alignment.
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Types of Private Financing Deals: Going Private and Leveraged Buyouts
LBOs use debt to secure an acquisition and the acquired assets service the debt.