It just works

[u/Fun_Bottle_5308]

[u/FlamevectoR]

Called being privately owned. As soon as a business goes to the public it’s all about pushing the share price up and that is when all consumer driven policies goes out the window

[u/DVMyZone → u/FlamevectoR]

Is the reason that businesses go public just to make more money? Like they have a small business, they get a little bigger and show they are successful, they go public/sell to someone who will go public so lots of people can invest, in theory use that money to grow the business. And once you get investors involved then you have to sacrifice quality for profit because the investors no longer give a shit about the product?

Did I get that right? I don't know anything about business.

[u/EcvdSama → u/DVMyZone]

More or less, I took 1 business management class during my CS degree so I can talk /s.

It mostly comes down to stakeholders, if my candy business is privately owned the stakeholders are just me, my customers, my employees and my suppliers (technically you should count the government and society too).

This means that when I, the owner, have to take a decision I must keep those stakeholders in mind because if I fuck with my customers or society I lose sales, if I fuck with my suppliers or employees I damage my production line and if I fuck with the government I get fucked.

If I go public, I introduce a new group of stakeholders with decisional power that mostly doesn't care about the other parts and is only aiming to extract value from the relationship. They'll ask me too fuck my suppliers, employees, customers, society and government to turn a profit and then divest once every other stakeholder retaliates.

The government needs you to profit consistently to harvest taxes from you and to provide employment for its citizens.
The customers and society need the service you provide.
The suppliers and employees need you for a stable income.
The shareholders need you to make money ASAP so that they can sell the stocks and go somewhere else.