Is GOING PUBLIC all it's cracked up to be?

Some companies couldn't wait to go public and take advantage of stock holder money to grow their businesses. Merger and Acquisitions expert Mark Druskoff with Dealogic explains why some want to go back to private ownership. "When you're a public company there is the tyranny of the short term because you need to report every quarter that you've made progress towards your goals. Sometimes good strategies don't play out in 3 months!" Druskoff says private equity firms are looking for investments that will pay off in the long term.

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And sometimes, things just change. During the Covid Lockdown, many office workers became remote workers and technology was in greater need. Some big Tech Companies went public then looking for stock money to finance their urgent growth. Druskoff: "These companies have plans to keep on growing, so access to the public markets give them access to new pools of capital. They're going to use this money to grow their company - so they go public." But many workers are going back to the office now, so the company's strategies had to change to prepare for a new future. Private investors are looking for just that.


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Companies going public will have stockholders who can trade their stock.Photo: Getty Images

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