Read Millionaire Fastlane
I've Read UNSCRIPTED
- May 27, 2013
This doesn't just happen at an IPO, it's anytime you take outside money. Every dollar you take a little bit less control that you have for yourself.When a company has an IPO, the consumers are not the only customers anymore. The shareholders are too.
When I took my first dollar of outside money, my company goals effectively changed to "provide a return for the investors"... which for now looks like: operate the business as I see fit, as long as I meet expected timelines on objectives and an exit. I do not plan on taking institutional money, however, and want to maintain majority voting rights for myself on major decisions.
But long-term, I'm going to be selling the company, and I will be optimizing for profit (or growth) for the 12 months leading into that sale, and I will not be able to control 100% what happens to the company after that.
I'm open to staying on as CEO for a while post-acquisition, depending on how the deal is structured. But if it came down to a choice between maintaining ownership for myself, or taking my chips off the table and selling to XYZ Megacorp, who's values may not be 100% aligned with mine... I'm picking door #2.
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