The cost of being public

Quarterly reporting, guidance and the market’s scorecard shape decisions. Founders and activists both argue about whether that is a price worth paying.

• Founders and companies
• Activism and governance

2 ideas that carry it

• Case studyActivism and governanceLetter located

  An activist turns bidder when the public market has not worked

  A take-private proposal is a complete case: the public record that failed, the price, the premium, the financing and the timetable, in that order.

  Take-private analysis, premium questions, and private equity interviews on how a deal is proposed.

  From Elliott Management's letter to the athenahealth board proposing a take-private (May 2018) · Jesse Cohn

• Company insightFounders and companiesLetter located

  Refuse quarterly guidance, keep control, and tell investors they are betting on the team

  A founder-controlled company should say what control is for and what investors give up; the 2004 letter is the template for saying it plainly.

  IPO process questions, governance debates about dual-class shares, and any founder letter that cites this one.

  From Google's 2004 IPO founders' letter, "An Owner's Manual" · Larry Page and Sergey Brin