BRAIT Meaning and
Definition
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Brait is a noun that refers to a type of financial arrangement or transaction commonly used in business and finance. It is a term primarily used in South African English.
The concept of brait involves the act of taking a company private with the intention of eventually selling it or listing it on a stock exchange at a later stage. It is a form of leveraged buyout (LBO) and private equity investment strategy. In this process, a private equity firm acquires a controlling stake in a publicly listed company by purchasing a significant number of shares. The company is then delisted from the stock exchange and operates as a private entity.
The term "Brait" is derived from the South African private equity company, Brait SE, which is well-known for employing this investment strategy. The firm has successfully executed various brait transactions in the past, making the term synonymous with this particular type of financial arrangement.
Brait transactions provide private equity firms with the opportunity to restructure the acquired company, make strategic changes, and enhance its value before relisting or selling it at a later stage. It allows the company to operate away from the scrutiny and regulations of being a publicly traded entity.
In summary, a brait is a financial arrangement or transaction where a private equity firm acquires a publicly listed company, takes it private, and later sells or relists it.
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Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for BRAIT
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