Benefits of not listing
Let's talk about the benefits of listing first:
Listing can bring enterprises not only these rich returns visible to the naked eye, but also the advantages of listing can be obtained from many levels. The listing of a company greatly enhances its popularity and reputation, which also means the further development of its scale and standardization. The listing represents the successful realization of the shares in the hands of shareholders and the expansion of the market value of enterprises.
How much benefit there is, how much risk there is:
And if listing is full of benefits, then I believe no company will refuse to go public. Today, there are still a number of companies that choose not to go public, which is obviously linked to the listing risk.
Even if the enterprise meets the listing criteria, it may not be willing to go public. The risks of listing are generally concentrated in three aspects: supervision, operation and information transparency.
After listing, it means that the supervision is strengthened. After listing, the financial report is far more important than before, and the company's every move will receive much attention. The commercial field has never been a battlefield to talk about, and the increase of supervision will put some pressure on the development of enterprises.
After listing, enterprises may be out of control. The original enterprise is working normally around the team built by the founder. After listing, the change of shareholders will introduce new members to the board of directors, which may weaken the control of the original management team. At the same time, shareholders who originally owned shares may sell their shares and leave, and the impact of high-level turmoil on enterprises is undoubtedly unfavorable.
The most important thing is information transparency. Due to the strengthening of supervision, the financial statements of enterprises will be more transparent to their business, which may lead to the disclosure of important customers and business models of enterprises, which is undoubtedly a good opportunity for competitors, but it may have adverse effects on listed companies.
Summary: Therefore, for the founder of an enterprise, the control right of the company can be firmly controlled without listing, and listing means transferring a considerable part of the control right of the company. It will not be affected by standardization and information disclosure, and the decision-making efficiency will be higher.