1, not short of money
A very important function of enterprise listing is financing, which is what many entrepreneurs need most. However, some enterprises have good cash flow and abundant funds, and do not need financing at all, and there is no need to raise funds through listing.
2, small wealth is safe.
People have different interests, ambitions and values. Some people are preoccupied with how to make money, how to make more money, and consider nothing but making money. In their value system, making money is the most valuable, even the only valuable thing. Besides, nothing can interest him. But some people have rich values. They attach importance to making money, but while making money, they also take into account other personal pursuits and hobbies. For them, the more money, the better, but enough. Relatively speaking, such people are better at life.
3. There is no expansion plan.
It is impossible for enterprises to expand on a large scale and make major investments or mergers and acquisitions without sufficient financial support. The demand for capital by this kind of enterprise behavior will generally greatly exceed the capital reserve of the enterprise.
4. Don't want to dilute the equity.
If an enterprise wants to go public, it must issue a sufficient number of shares, and the equity of the shareholders of the enterprise will inevitably be diluted. Even before listing, shareholders' equity will be diluted. Why? Because many enterprises generally have to carry out one or several rounds of financing for various reasons before listing. The financing target may be VC, PE or strategic investors. No matter who it is, it will take some different shares of the enterprise.
5. Confidentiality needs
After a company goes public, the most important difference is that you become a public company. You need to disclose the annual report as scheduled, and you need to disclose all kinds of information in strict accordance with the requirements. And some enterprises can't accept this. This is not to say that he must be hiding something, but the operation mode of each enterprise is different, and a lot of information of some enterprises cannot be made public, otherwise it will be easily copied or even attacked by competitors, or it will bring other disasters and troubles.
Of course, sometimes you don't want to go public. If you don't want to go public, you have to meet two conditions, otherwise, you won't want to go public:
1, no strong competitors.
If you have a strong competitor, I'm afraid it's not up to you to decide. If you don't go, people will go. Then you will have good fruit to eat. Even if you are late, the examples of two domestic software companies are not worth learning.
2. VC/PE has not been introduced yet.
If your company has ever introduced VC or PE, I'm sorry, I'm afraid you have to work hard for listing. As a financial investor, people will eventually quit. This was decided on the day I invested in you. How can people quit if you don't go public? Of course, in addition to listing, they have other exit channels. But for them, the most profitable way to quit is to go public. So unless your company has no hope of going public, going public is basically your only choice.
Summary: As an entrepreneur, listing or not listing is a choice. There are many ways for an enterprise to succeed. Listing is not the only measure, but it is undoubtedly the most recognized standard. Therefore, most qualified enterprises still choose to go public.