4 ms·
If you're a profitable private company, aren't you legit?
by bfwi 10y ago
If you're a profitable private company, aren't you legit?
- zenlikethat 10y agoIn some sense, yes, but check out Sarbanes-Oxley: https://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act https://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act. Public companies are under much more scrutiny in terms of compliance, and they have a certain type of pressure to post good quarterly results that private companies don't.
- csturtevant 10y agoWhat is the incentive to go public in today's environment other than an initial fundraising, and an unpredictable monetary bonus for employees? Edit: Appended another question.
- harryh 10y agoThat is how most investors cash out and turn a theoretical return into an actual one. It also makes the value of your corporate equity much clearer which can enable acquisitions.
- jimmywanger 10y agoDepends. I think with the increased scrutiny as a public company, you have much less wiggle room for creative accounting tricks.