Trading Privacy for Prestige: Melanie Wadsworth in Family Capital on When and if Family Firms Should Go Public

Alibaba's trading debut in the U.S. in September 2014 has brightened the outlook for other family-owned firms considering floating part of their business.

Faegre Baker Daniels partner Melanie Wadsworth, who has considerable experience advising clients on IPO matters, was interviewed for an article appearing in Family Capital on considerations family owned enterprises should take before taking the dive into the public domain. "Being a listed company brings with it a certain prestige," said Wadsworth, noting that this enhanced credibility can aid relationships with key parties such as suppliers.

Despite the benefits, Wadsworth noted that a downside would be the loss of privacy involved in flotation. "You suddenly find yourself with huge amount of information being publicly available, and that can be quite a difficult thing to get used to," she said. "An employee with one share could insist on seeing the director's share contract, for example."