The Change from Public to Private

Companies in the stock markets have taken some severe beatings, could the answer essentially be to go Private? A prime example is Blackberry, who has seen its stock market value to drop to about $6 billion dollars.

It is a constant test to be in a public company. Providing long-term shareholders their demands, and dealing with fast-money traders, activist investors and opportunists, requires immense amount of money, time, and energy. Could it be the fantasy of making big bucks in the initial public offering the reason why these companies take the leap?

Rewards of being in a public company can be massive, but the complexities with managing everyone can result in a decline in the stock markets. Private businesses allow more time for creating a long-term future that will benefit future stakeholders.

If Blackberry was to go private they could improve their business strategy and in the future come back into the public sector prosperous. There are many thriving private companies, for example Toys ‘R’ Us and Fidelity Investments. This new perspective can change the diminishing public companies to become successful privately owned corporations.

 

October 7, 2013Permalink