Tulchan has built a strong practice advising many leading private companies. In recent years private companies have received the same degree of interest and coverage from the media as public companies. Private companies now need an effective communications strategy too.
Private companies need to effectively communicate their financial results and performance. They continue to be seen as a proxy for their sector and are often referenced by the analyst community for insights into peer performance. Private companies usually have a higher degree of debt within their capital structure, and with bondholders more diverse and harder to identify, compelling disclosure is of greater importance.
However, most private companies that we act for are on a journey, to either a new ownership structure or a new life as a public company. Many are owned by, or invested in by, Private Equity funds. These companies were previously public themselves having been taken private or divisions of a larger group and spun off. For many this time as a private company is when they go through significant structural change, and through growth and expansion they build radically different businesses.
It is during this period that the companies and their management build their record and reputation in advance of the next crystallising moment in their history. As private companies, the market’s interest is limited however the financial media plays a disproportionate role in recording their corporate history and determining their reputation. It is a critical time and can significantly influence the future value of the business.