01-13-2014, 10:32 AM
(This post was last modified: 01-13-2014, 02:36 PM by Laurent Tommy Flanagann.)
As I said, I did not try your strategy, and as I did not make the IPO yet, I do not know how much it would cost me to buy back the shares.
Also, my strategy differs a lot from yours as I spent many years with only ONE factory, thus, selling on ONE territory (I chose London this time) only!
I noticed that competitors seem to have many many factories built as well as many branches, which is clearly not the case in my strategy! So I do not know what is best...
In real life, thus, it also depends on the strategy you want to assume for your company. But still, there is NOTHING on earth able to raise as much money as an IPO for a company. Let's assume you want to develop yourself drastically, then you may use an IPO. But let's say you are running a small "family" company, there is no need to do so.
Also, what you should consider is that having shareholders gives you less "control" over your company. Let's say you are running a company with 100 shares. If I buy one, then my "voice" would count for one per cent of all the decisions you make. That is, if someone has 50% of shares +1 , he is the one that decides, not you anymore. But that is only an example, we are talking about companies that are usually worth Millions, or tens of millions dollars...
And, as a matter of facts, it is actually much more difficult that only that! But basically, the point is there...
Also, I almost forgot, but when you are on the stock market, the company profits not only are for the company to use anymore, as, as I said before, you have to distribute your dividend to the shareholders...
Oh, and yeah, when I say public, it means people like you and I as well as anyone! You "inject" money or give, to the company in exchange for later dividends...
Also, my strategy differs a lot from yours as I spent many years with only ONE factory, thus, selling on ONE territory (I chose London this time) only!
I noticed that competitors seem to have many many factories built as well as many branches, which is clearly not the case in my strategy! So I do not know what is best...
In real life, thus, it also depends on the strategy you want to assume for your company. But still, there is NOTHING on earth able to raise as much money as an IPO for a company. Let's assume you want to develop yourself drastically, then you may use an IPO. But let's say you are running a small "family" company, there is no need to do so.
Also, what you should consider is that having shareholders gives you less "control" over your company. Let's say you are running a company with 100 shares. If I buy one, then my "voice" would count for one per cent of all the decisions you make. That is, if someone has 50% of shares +1 , he is the one that decides, not you anymore. But that is only an example, we are talking about companies that are usually worth Millions, or tens of millions dollars...
And, as a matter of facts, it is actually much more difficult that only that! But basically, the point is there...
Also, I almost forgot, but when you are on the stock market, the company profits not only are for the company to use anymore, as, as I said before, you have to distribute your dividend to the shareholders...
Oh, and yeah, when I say public, it means people like you and I as well as anyone! You "inject" money or give, to the company in exchange for later dividends...
"I build the cars I like. If people wished to buy them, well, that could possibly be arranged." E. BUGATTI