Delisting refers to a state in which shares can no longer be traded. Companies may be forced to leave the market for reasons such as breaches of market liquidity or market capitalization requirements, or may choose to delist voluntarily. In recent years, delistings triggered by fund acquisitions and management buyouts (MBOs) have increased.
Delisting is a state in which shares can no longer be traded. Companies may be forced to leave the market if they breach liquidity or market capitalization requirements set by a stock exchange, while others may choose to delist voluntarily.
There have been indications that cases of delisting resulting from acquisitions by investment funds or management buyouts, known as MBOs, in which management participates, have increased in recent years.
The benefits of being listed include easier access to financing and favorable credit ratings, while the diversification of the shareholder base is also a factor that requires consideration.