Like frono, I’ve worked for publicly- and privately-held companies (all with over $10B annual sales). The major focus shift is from what do the owners want (private) to how a decision is going to affect stock value (public). The difference in focus, dramatically, affects how business decisions are made…and, in turn, how a company is managed. The ensuing focus shift (similar to a merger) is followed by a period of uncertainty and ‘shake-up’ of the management team. Although every company wants to minimize how this change affects everyone and operations, it does occur. It’s the nature of the beast. My prediction is Fender may be more financially strong after the IPO, but, internally, there’s going to be some posturing, doubts (what I call, ‘what-about-me’ syndrome), management changes (through resignations, shuffling, and new hires), and gradual change to a business strategy and model that evaluates all operations to tweak (increase, decrease, add, or eliminate) for a greater profit margin. Let us hope for the best for the Guild Guitars group.
