We recently got profiled by Investopedia.com on our thoughts on when does it make sense for a private company to go public on the Stock Exchange. Personally, we think that if you run a profitable and successful private company then you shouldn’t go public at all. There are many reasons and we have listed a few below.
- Having to answer to all shareholders (could be hundreds of thousands) on a frequent and short term basis. Publicly traded companies usually announce their earnings and sales projections to their shareholders on a quarterly basis. This means that your company is going to be judged on short term success (every 3 months) rather than over the long term.
- Expensive fees to go public. It’s quite costly to run a publicly traded company as you have to pay for listing fees (ie. Nasdaq/NYSE) and the filing fees to submit your application/financials to the regulatory agencies.
You can read the entire article by clicking on the link below.