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Comment by kalleboo | Hacker News Reader

It seems like a lot of companies reach a nice stable point of development, but then get lost when they have to keep stockholders happy with short term month-to-month gains.

Is there some way for a company to amicably go private and delist when they no longer need investment? The only example I know of recently is Dell, but that was an unsuccessful company with a low value.

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I'd dismiss that idea as too costly to implement. If I were in their shoes I'd try a different approach.

Has been widely known that Japanese companies focus on longer term business goals instead of month-to-month gains, and I argue that worked alright for them.

Instead of valuing so much secrecy I'd make public a ten year business plan, and offer to buy the shares of those who lack the vision, patience, or interest in the company's goals. Thus giving freedom to the company by making those funds available to invest on a long term business plan. This would turn out to be much more affordable for the company.

Apple wins in part because of their secrecy. Would iPhone have been so successful if they told the whole world of it's coming 10 years ahead? Well, technically they did, in their patent filings, but the world wasn't listening. But, if they did so publicly, Samsung would've been there, copying the tech way earlier then they did.

I agree with the secrecy part, but please stop with the Samsung copying Apple bullshit, it's simply not constructive. I'm sure you know how much copying went into Apple's products themselves.

Samsung copying Apple is not bullshit, it was very overt and obvious to anyone paying attention. it was also proved in court.

Reminds me of Branson converting back to a private company for similar reasons.

http://esecourses.com/cfincase.pdf

The company could, technically and if allowed, buy back its shared from the shareholders, but don't quote me on this. I suspect there are lots of rules and regulations on how it's done, as well as it would require the company to pay a few multiples of the current share price, to convince investors to sell. I remember seing a post someone before, talking about what it would take for Apple to go private again. Can't find the exacts atm.

Management buy out. Big ones are generally financed by private equity firms. That's almost the only way besides acquisitions public companies go private. Whether a company is technically public is more or less academic once you get to 500 shareholders, the legal/reporting requirements are the same.

What usually happens is that a private equity firm may purchase a public company and turn it private again. I can recall Burger King being one of those companies, but they've re-entered the market as a public company again

It's a bit odd to make a distinction between "the company" and "the shareholders" when the shareholders are the owners of the company. I think it's better to say "management".

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