When a private company goes public, the founder and the board lose control and are now subject to periodic reporting and compliance to regulaltory bodies. Why would they want to go public? What are the reasons?

1. Access to working capital - going public raises a significant amount of money for the company which it can use for acquisition, expansion, defense, etc.
   e.g. In Pixar's case, it went public to raise capital to regonitate with Disney to be an equal partner in all subsequent movies
2. Liquidity for the private shareholders - these could be the founders, early investors and employees who were given stock optons. It's easier for them selling their stocks in the stock exchanges than to sell their shares as a private company
3. Branding - a company listed in the exchanges has increased visibility enhancing its image to its customers
4. Credibility - a public company has more credibility because it's now subject to greater public scrutiny. This enhances its stature to its customers, partners and supplies
5. Attracting and retaining talent - stock options or equity-based compensation is an enticing lure to attract and keep top-level people
6. Currency for acquisitions - instead of using cash, the company can use its shares to acquire or merge with other companies
   e.g. when Disney bought Pixar, it was through its shares, not cash
7. Shareholder diversification - instead of concentrating wealth in one company, shareholders can now diversity through stock sale. This reduces their exposure to just one company and can spread their risks across many companies
8. Valuation transparency - a public company's financial records (balance sheets income statement) are available for public scrutiny. This makes it easier to negotiate with creditors, suppliers and acquirers. This is also useful for management, shareholders and investors
9. Accountability and governance - public corporations are subject to stricter government regulations which instill 'good behavior' by management. The board is also made accountable to its shareholders
10. Exit strategy - venture capitalist, private equity firms, and early investors may have invested for the purpose of cashing out when the company goes public

Going public has its 'downside' as well - loss of control by the founders, tighter government restrictions and regulations, subject to public speculation (like short sellers).