The Largest Private Companies in the U.S.

THE LARGEST PRIVATE COMPANIES IN THE U.S. WHO THEY ARE, WHAT THEY DO, AND WHY THEY STAY PRIVATE Many companies believe they need to go public to make a quantum leap in company growth. However, many of America's most successful firms, having achieved terrific success in private ownership, are concluding that the benefits may not be worth it after all. Below, we explore America's 20 largest private companies and what compels such firms to avoid IPO. MEET THE 2ID LARGEST PRIVATE COMPANIES (REVENUE IN BILLIONS) $109.56 $100 $30 $29.20 $27.20 $25.13 $24.40 $22.80 $20.40 $18.86 Publix. US. Cárgill KOCH MARS DECHTEL Loves ERNST & YOUNG Wholesale Gracers рис FOODS Food, Drink Multicompany Food, Drink Construction Food Markets Convenience Stores Financial Food Markets Food, Drink & Tobacco Business Services & Tobacco & Tobacco & Supplies & Gas Stations Services 65,000 EST. | 168,000 EST. EMPLOYEES 1998 EST. | 148,000o EST. EST. | 152.00o EST. EST. 126,800 EST. 67,000 1865 EMPLOYEES 1940 EMPLOYEES 1911 EST. 8,000 EMPLOYEES 1930 EMPLOYEES 1964 EMPLOYEES 1989 EMPLOYEES 1918 52,700 16,681 EMPLOYEES EST. 1993 25,000 EMPLOYEES 1898 EMPLOYEES $17.77 $15,60 $14.63 $14,60 $14.10 $14 $13,86 $13 $12.60 $12.26 HE-B meijer COX Reyes Holdings Pilot. enterprise Toysus Á ARAMARK GAVILON OFidelity ENTERPRISES Convenience stores Food Markets & Gas Stations Food Markets Media Car Rental Food, Drink Retail Business Services: Business Services & Supplies Diversified & Tobacco & Supplies Financials 19,000 EST. | 76,000 EST. | 74,000 EST. 2001 EMPLOYEES 1905 EMPLOYEES 1934 EMPLOYEES 1898 EMPLOYEES EST. 71,000 EST. | 254,00o: EST. 1976 EMPLOYEES 1959 EMPLOYEES 1989 EMPLOYEES 1995 EMPLOYEES EST. EST. 1957 70,000 EST. EST. 1946 60,000 11,000 1,900 37,600 EMPLOYEES EMPLOYEES WHY DO COMPANIES CHOOSE TO STAY PRIVATE? The biggest appeal of going public is the influx of investment money that pours in at the IPO. Organizations can use this newfound capital to grow their businesses far beyond their practical means as a private firm. IPOS CAN DOUBLE OR EVEN TRIPLE THE VALUE OF A COMPANY. AROUND 90 PERCENT OF JOB GROWTH OCCURS AFTER IPO. It may seem surprising that many successful companies willingly choose to remain private, but there are several compelling reasons for this: TIGHTER CONTROL LESS REGULATORY STANDA RDS LOWER COMPLIANCE COSTS After a company goes public, it's controlled by investors. Founders and critical board members can be With public ownership comes mandatory adherence to strict operational, accounting, and reporting standards, including the burdensome and costly Sarbanes-Oxley. Along with these new standards comes the cost of implementing policies and departments to ensure compliance. voted out, and the company is then vulnerable to hostile takeovers from other firms. Stay ing private keeps the control of the organization EXEMPTION FROM SEC LESS BUREAUCRACY PRIVATE EQUITY SECOND OVERSIGHT As a public company, financials and company performance data must be audited and reported to all shareholders. Private companies do not need to expose such critical information. Private companies can gain a competitive edge by making quick decisions and implementing strategies that would have to pass through formal levels of approval at public firms. MARKETS Private companies looking to attract investment without going public do so on second markets. While this approach might not produce the volume of investment that going public can, it is often sufficient for SEC companies looking to retain private status SOURCES: HighTable.com HTTP://www.FORBES.COM/LISTS/2011/21/PRIVATE-COMPANIES-_LAND.HTML HTTP://NEWS.INVESTORS.COM/ARTICLE/594415/2012091844/REGULATIONS-STALL-MARKET-FOR-IPOS.HTM HTTP://NEWS.MORNINGSTAR.COM/CLASSROOM2/COURSE.ASP?DOCID=4555&PAGE=2&CN= HTTP://www.INVESTOPEDIACOM/ARTICLES/STOCKS/08/COMPANIES-STAY-PRIVATE.ASP#AXZZIORNQT6IR