Private Company Director

The Push for Microcap Companies to Go Private

According to an article on cfo.com, more than 1,300 U.S.-listed public companies have less than $10 million in earnings before interest, taxes, depreciation and amortization (EBITDA).

Remaining as a public company could destroy shareholder value for these microcap companies, which typically spend $1 million to $2.5 million per year to stay public.

By going private, companies with EBITDA of $1 million to $10 million should be able to increase EBITDA anywhere from 10% to 100%, according to the article.

Read the full article here.

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