Part 8/13:
Staying private offers certain key benefits, including the protection of trade secrets, less regulatory scrutiny, and the flexibility to focus on long-term strategic goals. Private companies can avoid the quarterly pressure to deliver short-term results, allowing for more sustained innovation and growth.
However, there are clear disadvantages as well. Companies that remain private forego the liquidity and acquisition currency that go hand-in-hand with public listings. Going public allows firms to use their stock to acquire other companies—Apple's purchase of Beats by Dre is a prime example—thus facilitating growth and diversification.