New CEO’s Are Taking Their Companies Public
The new trend in corporate culture seems to be taking companies public. Opening companies up to the IPO arrangement takes quite a bit of rearranging, and perhaps quite a lot of courage as well. But once successfully accomplished, going public can certainly bring more than its share of financial vindication. CEO’s are being newly appointed to companies at an unprecedented rate for the specific purpose of taking their companies public, and this seems to be a trend that is not scheduled to pass away any time soon.
Going Public In A Major Way
Offering the IPO option to the public brings with it its share of risks. However, playing the IPO card at the opportune time will certainly make the company’s primary officers far richer than they are at the moment. Think of Mark Zuckerberg, the head honcho at social media giant Facebook, who went from a billionaire to a multi-billionaire in the wake of an extremely successful IPO gambit. It’s definitely not a question of whether an IPO move can be successful, but merely a question of whether circumstances are timely and the public is receptive.
The New Regime At Toys R Us
For example, there is a whole new regime at longtime retail giant Toys R Us. Dave Brandon, who is himself a veteran of several IPO changeovers, has just been named as the new CEO of the company. Brandon is expected to not only oversee the transition to the new IPO format, but also to guide the company through its crucial first few years under the new conditions. It is hoped that he will help the company to achieve the same heights of success that so many others have recently attained.
Does The Public Truly Benefit From An IPO?
It should always be remembered that the “I” in IPO stands for Initial. When a company first offers this new arrangement to the public, the first response from any savvy investor is bound to be, “What’s in it for me?” The most salient point behind an IPO in the first place is to raise enough capital from investors to allow the company to grow even larger.
In the case Toys R Us, investors already know the history and reputation of the company. The task ahead is to grow the brand with the help of a whole new breed of allies: The common folk.