Publicly listed companies in the United States declined from more than 8,000 in the late 1990s to approximately 4,317 by 2023. The median age of companies debuting publicly rose from 6.9 years a decade ago to 10.7 years today. Private equity firms, family offices and strategic investors increasingly provide capital, liquidity and visibility options that historically drove IPOs. Staying private avoids quarterly financial reporting, preserves owner control, enables long-term decision-making and reduces exposure to public-market volatility. The expanding private marketplace creates a growing need for clearer transparency and education about private share valuation, ownership and share-class structures.
Staying private means avoiding quarterly financial reporting requirements, which can become onerous and all-consuming. Operating privately allows owners and key stakeholders to retain more control and influence over the future of a company, prioritizing long-term goals over short-term shareholder and market demands and expectations. Private companies are not subject to the volatility and vacillation that come with being publicly traded, nor do they live by where the stock trades or quarterly results fall.
However, as the private marketplace becomes a more viable and commonplace option for an increasing number of companies, a significant issue has emerged: the need for greater transparency around and education about share ownership and share structure. Unlike public company stock valuations, which are readily available and accessible to all, there is less clarity around how private company shares are valued and how share classes are structured.
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