To Go Public, or Not to Go Public - That is the Question
Going Public? Why Some Companies Are Saying No Thanks
Stock markets reached repeated all-time highs in 2021. It was also a major year for IPOs, with 368 traditional IPOs filed—over a 60% increase from 2020—driven largely by the healthcare and technology sectors.
Forbes – November 2021 Stock Market Outlook
Yet despite this activity, the total number of publicly listed companies is actually declining. Global listings peaked at 45,743 in 2014, but dropped to 43,248 by 2019, with that number still trending downward.
Let’s take a closer look at why more companies are choosing to stay private—and what that means for investors.
Why Companies Are Going Private
There were 47 take-private deals in 2020. In 2021, those transactions hit over $800 billion, driven by private equity groups offering appealing alternatives to traditional IPOs.
But PE firms aren’t the only reason. Many companies are also:
1. Avoiding the Stock Market
Low interest rates and ongoing stimulus from the Fed (since the 2007 crisis and more recently COVID-19) make debt financing very attractive. Instead of going public, many businesses borrow cheap capital—an option that's easier and less regulated than managing a public offering. See our breakdown of debt financing.
2. Dodging Regulation and Scrutiny
Going public means complying with the SEC, undergoing periodic audits, financial disclosures, and general public oversight. That regulatory burden can be costly—especially for small- and mid-size companies.
3. Escaping Meme Stock Mayhem
Public companies face social media volatility. Influencers and celebrities can spike or sink share prices with a single tweet. Many executives view this landscape—combined with retail trading surges—as unpredictable and risky.
The Perks of Going Public
That said, going public still has advantages:
Access to Capital – IPOs raise significant funds for growth.
Publicity and Visibility – Listings increase brand awareness and may attract new customers.
Corporate Accountability – Public companies often refine their corporate impact strategy, enhancing public perception and internal culture. Here’s how companies are using podcasts to communicate their mission.
Accredited Investors Get More Access
Not everyone’s limited to public markets. Accredited investors—individuals with $1M+ in net worth (excluding their primary residence), or $200k+ in annual income—can explore:
Private equity
Crowdfunding
Off-market securities
To learn more about this status and how it works, check out our guide on accredited investors.
Let’s Talk Strategy
Whether you're an accredited investor or just starting to explore your options, we’re here to help. At NEST Financial, we specialize in helping Austinites and Hill Country residents navigate public and private investing opportunities with confidence.
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DISCLAIMER: The information and opinions shared in this article are for educational purposes only and do not constitute financial planning or investment advice. For personalized recommendations, reach out to info@nestfinancial.net.