Do I have to go public to set up a company? Why?

If you set up a company and don't go public, no one will force you to go public. The most important thing for A-shares is listed resources. The market is always worried that there are too many IPOs, which makes investors afraid and the stock market is weak.

Many well-known companies in China are not listed, such as Huawei, a technology company, and Wahaha, a food and beverage company. But now Wahaha's attitude has changed, from not listing to not excluding listing. But many companies regard listing as a reputation and a company's development goal. They want to go public at the first opportunity, even if it is to give money as a gift.

One of the reasons why Huawei is not listed is that listing Huawei will create a large number of employees. "This may make us more and more lazy and lose the essential color of strugglers." This view is very correct. After listing, many companies no longer based on their main business and lost their enterprising spirit. Instead, we should base ourselves on hot spots, push up the stock price, reduce our holdings on rallies and realize financial freedom. The result of chasing market hotspots is to destroy the company, leaving an empty shell, or simply hollowing out listed companies and then reducing their holdings. That's how Jia Yueting played, and LeTV ended up insolvent.

Jia Yueting used related party transactions to owe billions to listed companies, and used guarantees to get listed companies involved in lawsuits. Guaranteed debts amount to billions of dollars. Jia Yueting reduced his shares, then pledged most of them for financing, which is equivalent to almost cashing in, and finally went to the United States to build a car. This is a very bad example.

Zong Houqing of Wahaha believes that Wahaha is not short of money and there is no need to raise funds through listing. How much money does Wahaha have? It is said that there are 654.38+0 billion cash. In addition, Zong believes that "there are many frauds in listed companies. "Indeed, Zongdao pointed out the biggest drawback of A shares, that is, fraudulent listing, financial fraud, and Liangkang financial fraud are obvious to all. The amount is staggering.

Laoganma is one-sided, but it makes sense. Tao Huabi, the founder of Laodopted Mother, once said, "I am determined not to go public. Once I go public, I may lose everything. Going public is cheating money. Take it if you have money, circle it, ask him to become a shareholder, and then suck it away. I will pay the debt, I won't do it. "

Unlisted capital market is very welcome, so are listed companies, but there are not many good companies.

The preparation may not be listed, which is related to the company's development plan.

The purpose of listing is financing, so that enterprises can get a lot of funds to support their rapid expansion. Of course, some major shareholders can also take the opportunity to cash out and get high returns.

However, the company's development plans are diverse, and some companies will not choose to go public or even expand. For example, many companies in Japan and Germany, despite good performance and good development momentum, have not listed. They choose to focus on their core business and expand cautiously. Improving the technical level, production efficiency and product quality is the focus of these enterprises, and becoming stronger is far more important than becoming bigger.

China enterprises are more inclined to go public and make money, so domestic enterprises are big but not strong, and they are keen on making quick money instead of digging deep into their core business. As the trade friction set off by Trump intensifies, the disadvantages will become more and more obvious.

The listing of a company, in layman's terms, is to divide the ownership of the company into several small shares and circulate them in the market. If institutional or individual investors are optimistic about the company's industry or prospects, they can buy the company's shares in the open market. Not listing means not circulating shares in the open market. If there is demand, it will be transferred in a private way.

The biggest difference between listed companies and non-listed companies is that non-listed companies are several bosses who get rich silently; Going public means getting rich with all investors.

In view of the above reasons, listed companies will undertake more things than non-listed companies.

First of all, we must disclose our business and financial situation to the public. Because listed companies are oriented to the public, they are no longer the personal companies of one boss or several bosses. Listed companies should regularly disclose financial reports every year, and all major and minor issues should be announced. In case of major issues, it is necessary to vote at the shareholders' meeting.

Second, listed companies have financing advantages. Why does the company go public when it reaches a certain level? It is certainly a factor that business owners want to realize the skyrocketing value through listing. But the most important reason is the financing platform of listed companies. Once listed, there will be more financing channels. Unlisted companies have to rely on financial institutions to borrow money when they encounter financial difficulties. Banks still ignore companies with poor qualifications. After the company goes public, it can obtain relatively cheap funds through refinancing, issuing bonds and other channels. With the endorsement of the platform of listed companies, it is naturally not difficult to find bank loans. In addition, once the company goes public, it will continue to expand through mergers and acquisitions, and there will be more possibilities.

There are two reasons why companies can go public instead of going public: first, companies are not short of money. At present, the cash flow is very abundant, and its own funds can fully meet the needs of reinvestment; Second, I was short of money, but I didn't want to sell shares to raise money, so I had to borrow money from the bank. For example, Huawei, Laoganma and other well-known enterprises, as well as some local enterprises that have been urged to go public because of various doubts, are all in this situation.

But in general, enterprises can still go public and try to go public. Because at a certain stage, enterprises will almost certainly face the problem of funds. But the bank's solving ability is limited. Yaohan, a famous Japanese supermarket, only issued short-term bonds in the open market for financing, but the short-term bonds faced default, and the bank refused to issue loans on the grounds of lack of funds, and finally filed for bankruptcy.

Debt financing is easy to face the shortage of capital chain when the debt expires, and even the best company may face bankruptcy. The advantage of equity financing is that the assets formed by the transfer of part of the equity will become the assets of the company, which will never need to be paid off, and can be safely and boldly used to develop the company's long-term business.

In addition, generally speaking, the partners brought by equity financing are likely to know something about the company's business, which can help the company to further expand its business and thus establish strategic coordination among shareholders. It is worthwhile to exchange part of the equity for the company's core competitiveness in a certain aspect.

The biggest difference between listed companies and unlisted companies lies in the different liquidity of enterprise property rights. Compared with unlisted companies, the property rights (stocks) of listed companies are highly mobile.

If there is no listing, there will be no liquidity in the company's equity. Listed companies are different. After listing, his equity can actually be bought and sold, which is very convenient. In listed companies, equity incentive is also a good management tool, and employees may be more willing to accept shares that can be freely realized by listed companies rather than cash.

There are also differences between listed companies and non-listed companies in financing ability and financing methods. Listed companies will raise funds in the IPO for the first time, and then they can publicly or privately refinance in the market, as well as carry out matching financing during mergers and acquisitions. Moreover, because of the large range of funds raised, the ability to raise funds has also improved.

Therefore, we can find that the comprehensive financing rate of listed companies is lower than that of non-listed companies.

The mobility of listed companies' equity has increased, and the freedom of decision-making has correspondingly weakened. A shares require the same shares and the same rights to regulate the exercise of rights. If the boss doesn't have enough shares, the company is prone to danger. Many decisions still need to be passed by the shareholders' meeting or the board of directors every day, so the operation of the company will be restricted by many parties.

Of course, listing also requires costs. Listing is very strict with the company. It takes several years to prepare for the listing after the standardized operation of the main board, and it is necessary to maintain the standardized operation after the listing. This is difficult for many companies. After all, the taxes previously reduced or exempted through various compliant and non-compliant ways can not only be reduced or exempted, but may also need to be paid back.

Of course, listed companies are not as free as non-listed companies because they emphasize compliance. Some companies don't want to go public because they don't want to disclose their finances, and some things don't want to be seen by others, and they don't want others to tell them what to do when making decisions. Not all companies want to go public. Huawei, Laoganma and Wahaha are not listed.

So the biggest difference between listing and not listing is trading. After listing, you can trade at a high premium, while unlisted companies can only trade at a large discount.

So why did the listing price go up? This is actually an illusion given by the A-share IPO.

A-share listing rarely breaks, and it is rare in recent years. On the contrary, it rose three times and five times as soon as it went public, making millions of people rich. Many companies no longer want to start a business with peace of mind after listing, but have already made a name for themselves, so they made up stories, rubbed hot spots, raised their stock prices, and finally cleared their positions and reduced their holdings. This is the status quo of A shares.

There are more and more new shares, and the market can't bear it. In the future, there will definitely be stocks that will break as soon as they are listed, but I don't know when. Of course, I believe that our A shares will become more and more mature and will eventually witness the growth of super companies.

What are the main differences between listed companies and unlisted companies?

Different financing channels

Listed companies have more financing channels than unlisted companies. When a listed company goes public for the first time to raise funds, it is called IPO, and it must sell some shares to obtain funds from new shareholders. What IPO gets is small money, because there is still a big head behind it, that is, it can be issued continuously, and you can get a capital injection every time you issue it. In addition to stocks, listed companies can also issue bonds for financing. Of course, non-listed companies can also issue bonds, but in proportion, listed companies issue bonds much more. If you don't go public, financing is relatively inconvenient. Stocks can't be traded publicly, but they can only raise funds directionally, which is not attractive to listed companies.

Moreover, listed companies are easier to merge than non-listed companies, and many companies are more difficult to list, so they will indirectly absorb merged listed companies. The shares of listed companies can be traded on exchanges and can be realized. It is difficult for non-listed companies to realize the realization of shares, and the return on shares is far less than that of listed companies.

Different corporate structures

Non-listed companies don't need to manage enterprises according to a complete management structure and system, and listed companies can't. They need a complete system of shareholders' meeting, a complete system of board of directors, board of supervisors and secretary general, and a complete corporate governance structure. Non-listed companies do not need to disclose financial information on time, and listed companies should disclose information on time.

Have different meanings for shareholders.

For most entrepreneurs, listing is the node of an enterprise and becomes the actual controller of listed companies, which is the recognition of an entrepreneur's ability by the capital market.

1. The shareholding structure of the company has changed. Before listing, the company's equity was concentrated in the hands of institutions and individuals. After listing, a large part of equity will be listed and traded, and its manifestation is stock. Whoever buys shares in the company becomes a shareholder, even if it is one of the owners of the company. Major decisions are no longer decided by the boss alone, but by the board of directors and the shareholders' meeting, and everyone will discuss them together.

2, strict information disclosure, it is difficult for companies to have secrets. From the company's basic information, to major decisions, to financial data. , must be published on the relevant platform, all investors should know. But there is a question of time, which is strictly confidential before it is made public. This is why people who speculate in stocks desperately buy inside information, and investors always want to know it early, because such news often means excess returns.

3, the way to get money, which is also the most important point. Before listing, if the company needs financing, it is usually indirect financing methods such as bank loans and financial leasing. The borrowed money has a term and interest, and it needs to be repaid. If it doesn't go up, get rid of your assets or find a guarantor. Listing is direct financing, and money is a long-term loan with a large amount and no fixed repayment period. This is also the reason why most companies tell stories and expand their scale. This is a way to get rich. Therefore, most companies will desperately tell stories, expand their scale, and take listing as the ultimate goal (Huawei and Laoganma, unlisted factions, have their own unique business systems and are not universal).

Different popularity

Listed companies are publicly traded on the exchange, and their popularity is greatly improved. The popularity of many brands has increased rapidly after listing. Letv, for example, was just a small video website before listing. After listing, it is a well-known company with stories and PPT!

Not necessarily.

First, it depends on the industry in which enterprises are engaged, and whether they need to use the open market to enhance their influence in order to better serve the public.

Second, the stage of the company's development and the company's financial situation If it is in the growth stage, it needs more self-development to increase the share of the company's products, but the finance can't keep up with the pace of development, so it can be considered.

Third, if you don't need funds, or in order to enhance your influence, you can choose not to go public, so that shareholders can get more profits in other fields without sharing. So many profitable enterprises are sometimes reluctant to go public.

The above is my answer, I hope I can help you! thank you

Whether a company goes public or not depends mainly on the company leaders and the company's situation. Some companies are short of money, so he can go public for financing, and some companies are not short of money, so he can not go public (such as Laoganma).

Whether to go public or not depends on the goals of the company's shareholders.

I. Advantages after listing:

1. Financial support for rapid development: Statistics show that when the company's sales are 200-300 million, it can develop faster if it can get financial support (listing financing).

2. Governance norms are more credible: listed companies have higher compliance requirements, so in comparison, listed companies are relatively more standardized and credible.

3. Equity redemption: listing and cashing in equity will help the company attract outstanding talents.

Second, the disadvantages of listing:

1. If the listing is unsuccessful, the high agency fee and upfront investment will be wasted, which will drag down the company's performance.

2. It is necessary to disclose the company information according to the regulations, which increases the cost and risks revealing some company secrets.

3. High cost of violation: listed companies violate the rules and harm the interests of shareholders, and there is a risk of being fined heavily.

As far as the industry is concerned, it has the following benefits:

Heavy asset industry+private enterprises, it is difficult to be in a monopoly position, financing difficulties. If they don't go public, they will be overtaken by their rivals. This is necessary. Mainly traditional heavy industry. It may cost tens of millions of loan interest every year. The huge cash brought by listing can not only erase interest expenses, but also earn tens of millions more in turn. It's a dream because it's a long drought for industries that are hungry for funds. Counterexample seems to have never thought that unlisted private enterprises+heavy assets industries can still do many things that can be called giants.

The gross profit of service industry is high, but the brand is very important, so it is necessary to reduce the intensity of competition and expand the scale through mergers and acquisitions. It is impossible to use all cash, and the equity of non-listed companies is not worth a few dollars. With the platform of listed companies, equity acquisition becomes easy. Such as a blue cursor. The counterexample is Wahaha, but people have basically monopolized the rural market and urban low-end market in China, reaching the scale of a "giant", and it doesn't matter whether it goes up or down.

High-tech industries such as IT compete for talents, and it is difficult to retain people without equity incentives of listed companies. The counterexample is Huawei, but Huawei is already a giant, so it doesn't matter.

Fangzheng aspect

The realizable value of shares in the hands of listed companies has increased by n times, from rich to rich. A listed company can make a lot of money through repeated capital games as long as its performance is passable. Skip specifically.

When they are old, their children have no will or ability to take over and become public companies, so that successors within the company can take the company away with the aura of listed companies.

otherwise

On the platform of 1 listed companies, you can meet people at a higher level and get more opportunities (or risks).

2 financing has become simple, and high-profile banks in the past have turned to deposits.

3 talent introduction is simple

Conditions:

Check the legal conditions yourself.

Don't know the actual situation. There has never been a company (except counterfeiting) that is absolutely impossible or absolutely possible.

Risks or unfavorable factors:

1. Information is transparent and can easily become the target of competitors.

2. The founder can't do whatever he wants, and there are many constraints and pressures on his performance.

The founder's wealth has been targeted by more people.

4. After the startup team went public, they were frustrated and stopped making progress.

All in all, that's all I can think of In my opinion, the benefits of listing far outweigh the disadvantages of enterprises that meet the first paragraph, and are more suitable for the industry. Don't want to go public is mainly:

1. Monopolists in unpopular fields (often administrative monopolies), or oligarchs who are unwilling to break the tacit understanding, make a fortune and avoid attention.

2. The ass is not clean, there is something wrong with the money to make a fortune, or tax evasion, or a black-hearted industry.

Giant, what are you doing here?

4. The gross profit margin is extremely high, there is no shortage of money at all, and there is no need to share money with others. For example, high-end clothing, the profit is extremely considerable.

In addition to the above, companies claim that they don't want to go public, but in fact they are often unable to go public.

Nobody forced you to go public. After meeting the listing conditions, the listing of the company is undoubtedly the realization of assets, and the efforts can be recovered by cutting leeks. Most technology companies do this. If they don't go public, their efforts will be in vain and their dreams will be ignored.

By the end of 20 19, there were 40 million registered companies in China, but there were less than 4,000 listed companies. In other words, listed companies are one in a million. Even in developed markets in Europe and America, listed companies are still rare. Therefore, the purpose of establishing a company is not to go public for the sake of listing, but to really create value for users and society.

The purpose of listing is to raise funds, and also to find a way for shareholders to quit. However, due to the system and various reasons, the current domestic securities market has not brought China's economic growth and the dividends it should enjoy to a great extent. On the one hand, it is the lag of system construction, on the other hand, it is the immaturity of investors, which makes the stock market become a meat grinder and a blood sucker.

Some companies are not listed by nature, and there is no need to list. There are many century-old shops in Japan, South Korea and Taiwan Province Province, which pay attention to quality and customer experience. In the past 100 years, they did not easily expand through the capital market and created a large number of small and complex companies. From the future, many entrepreneurs in China should take this road, which is an important cornerstone of economic development.

Of course, you don't have to go public to set up a company.

If a sole proprietorship or partnership enterprise is established, it is impossible to go public or not to go public.

For corporate enterprises, listing needs to meet strict conditions, including: the duration of not less than three years; It has made continuous profits in the last three fiscal years, with a cumulative net profit of more than 30 million yuan; Or the accumulated operating income is more than 300 million; The net cash flow generated by business activities in the last three fiscal years has accumulated more than 50 million yuan; Intangible assets account for less than or equal to 20% of the net assets at the end of the recent period; There are no uncompensated losses at the end of the recent period; Waiting conditions.

After the company goes public, it is really conducive to raising awareness, raising low-cost funds and attracting outstanding talents. But it may also make the founder lose the leadership of the company and be swept out of the house. Companies do not go public, but can also develop through cooperation with financial institutions such as banks.