The Top 5 Largest Private Companies in the U.S.
If you have ever wondered whether or not you would like to keep your company private or public, consider thinking about how your choice can affect the way your business will work. Here are a list of the top 5 largest private companies in the United States and some of the reasons why they choose to stay private.
1. Cargill
Industry: Food, Drink, and Tobacco
Established: 1865
Employees: 126,800
Revenue in Billions: $109.56
2. Koch
Industry: Multicompany
Established: 1940
Employees: 67,000
Revenue in Billions: $100
3. Mars
Industry: Food, Drink, and Tobacco
Established: 1911
Employees: 65,000
Revenue in Billions: $30
4. Pwc
Industry: Business Services and Supplies
Established: 1998
Employees: 168,000
Revenue in Billions: $29.20
5. Bechtel
Industry: Construction
Established: 1898
Employees: 52,700
Revenue in Billions: $27.20
Reasons Why Private Companies Exist
Better Control
A public company is controlled by numerous investors and is vulnerable to takeovers from other firms. A private company, on the other hand, has total control over its internal organization.
Fewer Rules
A public business has to face dealing with strict standards that take up time and money.
Lower Costs
A private company does not have to spend nearly as much to adhere to required standards and policies.
Less Financial Exposure
Financials and company performance data has to be audited and reported to the shareholders of public companies, whereas private companies can keep this information to themselves.
Less Red Tape
Private companies have the upper hand because they can make decisions and implement strategies quickly. A public company, meanwhile, must have formal levels of approval by investors before making any changes.
Investment from Second Markets
Private companies have the option of seeking investment on second markets. They do not receive nearly the amount that public companies do but this approach usually brings enough investment to keep the company interested enough in maintaining their private status.
As you can see, a public company, although better funded, can cause your business to have to spend more in the long run and create little room for necessary changes. A private company will allow you the freedom of choice and give you less burdens to deal with in the long run. Choose which type will work out for your situation and make yourself some room to adjust to the changes afterwards.
