Public vs. Private — Wall Street Sways Fortunes

“There was a lot more flexibility in taking the company private. It allowed the principal shareholder better avenues to reward senior management and more flexibility in creating equity propositions,” he says.

“Taking the pressure off having to respond quarterly to the investment community and having a long-term perspective, particularly in this business, is a critical advantage. When you have to report to the Street every quarter, you give them a (performance) target. You cannot afford to miss that target, because you’ll be slammed by the investment community. It forces you to do things short-term to make a number that is not always compatible with your long-term objectives.”