Humanities

What is privatization? »Its definition and meaning

Anonim

It is a process where a company, from being public to being private, either by the state or by an active community entity, that is, a public good that becomes part of a company through a purchase or acquisitions your assets; making changes in the internal functions that are often beneficial, this process takes several processes, going through several phases, the first is the sale, which determines the conditions and increases the decision of the purchase and sale, depending on the situation in the What is the company, if it becomes the government, the policy is what determines the situation, the purchase and what is the new use and restructuringof the company, which is the next step of privatization, involving measures that in some cases the balance, in the appropriate improvements present risks to take, present risks and pose new challenges.

The advantages should be many, which in most cases do not occur because the objectives have not been clear, if this is the only way and the sale is the only way out; in this case, it must be taken into account that competition must be promoted, and the advantages should be clearer if the process is carried out with all the benefits of the law. The reasons are many, to carry out a privatization, but the most important is to find an ally, an investor who provides a significant injection of capital and renews the company, either with the total or partial sale of the shares, which usually range from 4% percent to 40% percent of the total sale of these shares.