I don’t know the family. I would only be speculating.
But, hypothetically, if you have a private, profitable business with $17 billion in revenue, you have more than enough money to live extremely comfortably.
My favorite professor, back then, used to say, “As a businessman, you always have to ask yourself, with anything, what can you gain, and what can it cost you?”
If you now go public, your net worth will go up considerably – but at what cost?
Considerable cost, if you think about it: quarter-to-quarter pressure, outside pressure (from shareholders), a higher cost structure to comply with the extra regulations that come with public companies, higher legal risk as public companies have to operate under different rules than private companies, and so on.
So, I guess, it depends on the owner's individual assessment. Is the extra private jet really worth all that headache?
Some may say yes. I would say no. To each their own.
Well said. Much in business is determined on the one hand by ambitions, and on the other hand by the price of responsibility for these ambitions.
We cannot know all the details of the reasons, of course, but in addition to technical advantages or disadvantages, there are certainly some universal ones.
Perhaps it is part of the traditions and values of the family - to pass the business through generations in this way.
Great article.
That is one company I wish I could invest in.
But I also understand why they didn't go public. If I were in their shoes, I wouldn't either.
Could you share the thoughts why did they choose being private?
Sure, and great question.
I don’t know the family. I would only be speculating.
But, hypothetically, if you have a private, profitable business with $17 billion in revenue, you have more than enough money to live extremely comfortably.
My favorite professor, back then, used to say, “As a businessman, you always have to ask yourself, with anything, what can you gain, and what can it cost you?”
If you now go public, your net worth will go up considerably – but at what cost?
Considerable cost, if you think about it: quarter-to-quarter pressure, outside pressure (from shareholders), a higher cost structure to comply with the extra regulations that come with public companies, higher legal risk as public companies have to operate under different rules than private companies, and so on.
So, I guess, it depends on the owner's individual assessment. Is the extra private jet really worth all that headache?
Some may say yes. I would say no. To each their own.
Well said. Much in business is determined on the one hand by ambitions, and on the other hand by the price of responsibility for these ambitions.
We cannot know all the details of the reasons, of course, but in addition to technical advantages or disadvantages, there are certainly some universal ones.
Perhaps it is part of the traditions and values of the family - to pass the business through generations in this way.