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I have a question, why do companies go public later into their lifespans? If I was Uber wouldn't I want to go public within a year or two of extreme success (20
by Kilonzus 8y ago
I have a question, why do companies go public later into their lifespans? If I was Uber wouldn't I want to go public within a year or two of extreme success (2013-2014) where my popularity and reviews are higher to garner more interest and therefore more buyers at a higher initial price? Instead its maybe 8-10 years after launch where regulations and lawsuits have attacked the business model. Correct me if I'm wrong just wondering.
- casegold 8y agoPart of a CFO's job is finding the cheapest capital source for the companies growth, sometimes that raising private equity and sometimes that is raising public equity (from IPOs). Also, being public is a resource drain on the organization. You have to comply with SEC guidelines, employees have to be watched for insider trading, all of your company financials and other details are now public for the world to see. Sometimes the burden doesn't make sense for a high growth company.