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If they remain as successful as they are now, going private will never be an option because doing so would cause complete erosion of trust by shareholders, cust
by pcurve 11y ago
If they remain as successful as they are now, going private will never be an option because doing so would cause complete erosion of trust by shareholders, customers, public, and world. They will become opaque entities, and it will become very difficult for them to operate globally.
Putting that problem aside, at their current valuation, a group of investors will need to raise a huge amount of capital for relatively small return.
Dell took it private because the market effectively wrote off Dell and it wasn't trading much more above the book value. So raising capital to cover the amount was not difficult because the company was still reasonably profitable with good cash flow.
- throwaway2048 11y agosurely "erosion of trust by shareholders" isn't an issue for a wholely owned private company.