Questions for private companies
Many of the questions in this blog are appropriate for public and private companies, but the following questions are targeted for private companies only:
- Is the company profitable?
- How is the company funded?
- Who are the investors?
- How are corporate decisions made?
- How is the company organized?
- What is the company’s burn rate?
- How much money does the company have in the bank?
- What are the growth opportunities?
- Has the company considered filing for an IPO (initial public offering)?
- Is private stock available to me? What about stock options?
- Has the company been approached for a merger or takeover?
- What was the company’s reaction to the merger or acquisition overture?
- Has that attitude changed?
- Where do you see the company (or function) going in the next three years?
- Can you tell me about the company’s roots?
As former president Ronald Reagan would say, “Trust, but verify.” Asking these questions is just the first step. Confirming the accuracy of the answers is the second.