F E A T U R E
F E A T U R E
The UK economy is at a crossroads , with an increasing number of listed companies choosing to stay private . Low liquidity , the high cost of going and remaining public and economic uncertainty are shifting the UK into a private market economy .
Out of a workforce of 33 million , 27.5 million work for a private company . Over the past decade , the number of private companies has increased by more than 3,096 , bringing the total to
19,150 firms , each employing over 100 people . Meanwhile the number of listed companies has declined by 271 and now stands at 1,260 . The private company sector is now 15 times larger than the public . And a lot of these private companies fall into the SME category .
The cost and complexity of maintaining a public listing has become a financial and managerial burden . Listing on even a junior market like AIM can cost anywhere between £ 200k to £ 800k per year . The fees for brokers and auditors are additional , increasing the financial obligation even more .
It is no surprise that many companies – especially those in the mid-market – are choosing to remain private for longer or are reconsidering their listed status altogether .
To enable private companies to grow , it is crucial to improve share liquidity for stakeholders and attract investment . As the UK economy moves towards a predominantly private market , www . intelligentfin . tech
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