From Private to Public Company
Ever wondered what it's like to go from a private company to a public company? Darren Lampert, CEO at GrowGeneration Corp, has lived through this transition and has shared his experience in our interview. Here are some of the highlights:
"You're on display at all times. Everything you do is transparent. So if you're not looking to be transparent, stay out of the public markets." - Darren Lampert.
Life as a CEO
As a CEO, one of the most significant changes is your privacy when transitioning from private to public. Darren feels like his life is on display all the time. In a private company, you can be as transparent as you want. But in a public company, you're an open book, and your book has to be clean.
However, the biggest difference between a public and a private company is the perception of the leaders. In a private company, your primary concern is what's best for you as the owner. In a public company, your primary concern is the best interest of the company.
When it comes to M&A, being public has a lot of upsides. Because you are now a public company, you have more leverage in M&A deals. However, doing M&A as a public company requires more reporting. They need to report any acquisitions that they do, and they also need board approval before they can continue with any deal.
Why Go Public
Despite the many difficulties of running a public company, it's a chance to build something that will potentially be around for many years to come if done right. Going public is also a great way to create wealth.
Having said all this, Darren has advice for people who want to bring their company public; Run the company public before you go public. Set up a board, have financials every month, understand the process before you start going public.